Darling Downs rural market approaching the tipping point: HTW rural
An increase in listings across the western Darling Downs, Maranoa and northern New South Wales regions has been observed over the past two months, according to the June Herron Todd White (HTW) residential report.
The valuation firm looked at the influence of trade wars, pandemic outcomes and commodity prices on the rural sector, and provided an update of how rural real estate is performing across locations and industries.
The report notes agents are reporting that sellers are looking to capitalise on the good bodies of feed now on the ground following years of drought.
Strong re-stocker demand continues to support high cattle prices, which are underpinning grazing land values.
"The cattle market remains strong despite the country now haying-off in most areas and should the good rain forecast over the winter fail to eventuate, the body of feed currently available runs the risk of spoiling," the valuation firm said.
In the Darling Downs region, many farming operators are holding off planting until receiving beneficial rain to provide a full moisture profile.
As supply increases, there is strong potential for a softening in market sentiment as the pool of potential buyers is absorbed, the report noted.
The impacts of the barley tariffs and Australian meat export restrictions by the Chinese government may reduce buyer confidence, however these effects may take some time to play out.
Some recent listings in south-east and south- west Queensland include:
◗ Telco, Roma (pictured below) -939.5 hectares-to be auctioned 18 June
◗ Dunkery, Condamine-2944 hectares-to be auctioned 11 June
◗ Spring Grove, Roma-2496 hectares-to be auctioned 2 July
◗ Wattlevale, Moonie-3138 hectares-EOI
◗ Lesdale, Charleville-14,827 hectares-EOI ◗ Murilla, Meandarra-7655 hectares-EOI
◗ Nungil, Charleville-14,524 hectares–to be auctioned 17 June
◗ Tomoo, Mungallala-18,215 hectares-private treaty after being removed from auction terms
◗ Mundibulanga, Drillham-2678 hectares-EOI
◗ New Cashmere, St George-4458 hectares-EOI
◗ Greenoaks, Mitchell-5100 hectares–auction held 22 May
◗ Yambutta, Quilpie-41,083 hectares–to be auctioned 13 July
◗ Whyenbirra, Bollon (pictured below)-14,358 hectares-to be auctioned 18 June
◗ Terrica aggregation, Texas-15,990 hectares-EOI
◗ Kilto, Wandoan-4042 hectares-EOI
Recent sales include:
◗ Cooraki, Surat-2128 hectares-sold $3.85 million ($1809 per hectare)
◗ Glen Lindon, Injune (pictured below)-2627 hectares-sold $3.4 million ($1294 per hectare)
◗ Oban, Jimbour Plains-377 hectares-sold at auction $4.705 million ($12,599 per hectare)
In summary, the market may be approaching a tipping point where the strong increase in listings may see values stabilise following a period of strong growth, the report noted.