South west Victoria rural property market determined by confidence level: HTW

South west Victoria rural property market determined by confidence level: HTW
South west Victoria rural property market determined by confidence level: HTW

The level of confidence is always the key to the rural property market in South West Victoria, according to Herron Todd White's latest report.

The property valuation firm says that in general terms the farming sector in south west Victoria apart from dairying commences the new year in positive terms coming off the back of a good last half of 2016.

"We predict continued strong investment in agriculture through 2017, with influencing factors including the following:

  • no indication of an easing of the record market prices for beef and prime lamb.
  • there is abundant feed in the paddocks and reserves of hay have been replenished.
  • interest rates to borrow from banks remain cheap.
  • limited stock of good property being put to the open market for sale.
  • for large scale grazing holdings domestic purchasers beating off foreign purchasers.
  • Government policy is favourable to the rural industry." the report listed.

The values for rural property are predicted to peak in late 2017.

With specific reference to the dairying sector, there is a small glimmer of hope in the wider dairying industry which should show the start of recovery with current levels unlikely to change through 2017.

The rural market has been stable over the previous few years in Gippsland, however there have been some recent sales in the Bass area.

This indicates that there may be an increased interest in the rural small holding market for properties in the ten hectare to 80 hectare range.

Western Gippsland has seen increased interest in rural small holding lots with the completion of the

Pakenham racecourse appearing to increase demand for horse blocks or grazing properties.

The forecast closure of metropolitan racecourses may also increase demand for these lots.

Overall the rural market in western and southern Gippsland region is seen as stable with the potential for price growth over the next 12 months.

Strong seasonal conditions undoubtedly drove demand through the tail end of 2016 in Echuca.

This is likely to drive demand into 2017 particularly in the cropping sector which achieved significantly above average yields across most district (notwithstanding below average pricing).

One of the quiet performers has also been most classes of water which continues to recover in price notwithstanding a falling allocation market.

This has seen general security water surge to $1,275 per megalitre (including allocation) according to some local agents.

Meanwhile Victorian Goulburn water seems to be hovering around the $2,600 to $2,750 per megalitre mark.

There is a $1.2 million asking price on an 118 acre Bass farm through Elders Leongatha.

The farm, Janista is capable of carrying 60 to 70 breeding cows and calves or could make a fattening or horse property.

The private three acre lake is complemented by an additional 4 mega litre pumping license from the Bass River.

Tags: 
Htw South West Victoria

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