Dry seasonal conditions impacting market confidence in Darling Downs: HTW rural

Hot and windy days are compounding the dry conditions in the Darling Downs region, according to the latest Herron Todd White (HTW) rural report.

"In our travels, many landholders frequently ask where the driest part is observed.

"In my opinion, it would have to be in the south-east corner to south of Toowoomba through to Stanthorpe," the valuation firm said. 

Many paddocks that were once grazing now appear as fallow cultivation country due to being eaten out to bare ground.

The report notes a real concern should it rain is the potential impact of significant soil erosion due to very little ground cover - much of the country has turned to a fine powder.

The latest Bureau of Meteorology climate outlook statement for November to January indicated the chance of receiving above median rainfall for the south-east is between 25 and 30% and slightly better moving west where the Balonne Shire is 40 to 50%.

For graziers in the south-east and particularly in the Southern Downs region, where the majority of stock water requirement is provided by surface water only, the outlook is becoming desperate as dams are drying up rapidly.

With the dry seasonal conditions, it is now evident that this is impacting on market confidence with very few transactions of scale in the south-east region.

One sector of the market that has shown improvement in the liquidity is in far western Queensland and primarily those holdings benefiting from either rain or flood waters from February and March events further north.

Market activity in the Paroo, Quilpie and Barcoo Local Shires over the past eight months has increased on the back of improved seasonal conditions.

The purchasers are a combination of local and outer district landholders seeking additional country, but the major market driver is those seeking grass.

"The increase in buyer demand has created a broad firming in value trends over a relatively short period. This trend may consequently soften should further follow-up rain not be received this summer, where any firming in values observed in the short term maybe attributed to those grass purchases," the valuation firm said. 

Some recent transactions in the region include:

◗ Clifton Station, Windorah (pictured below) - a 48,800 hectare holding under contract;

◗ Canaway Downs, Eromanga (pictured below) - a 93,316 hectare holding selling for $8.137 million in May;

◗ Coniston, Windorah (pictured below) - a 28,500 hectare holding under contract;

◗ Retreat, Windorah - a142,601 hectare holding reportedly sold for $20 million including stock and equipment.

"We are also aware of a pending sale in the Cunnamulla region that will show the continuing strengthening for river frontage country, with further details to be provided when publicly available," the valuation firm said.