Mildura rural market stronger due to high confidence levels: HTW

Confidence levels in Mildura’s rural property market have strengthened considerably during the past two years, according to Herron Todd White's latest report.

The property valuation firm says that the improved confidence will be continue to be reflected in both a higher number of property transactions and higher values.

"What is remarkable is that this confidence has spread to almost all of the rural industries found in the region," HTW's latest report suggests.

A lower Australian dollar, improved export access to some key Asian markets, low interest rates and generally good seasonal conditions have seen growers of table grapes, citrus and almonds generate strong cash flows in successive years.

Wine grape growers, after enduring terrible commodity prices for a decade, are expecting prices to improve by around $50 per tonne in the current harvest.

"They are hoping that this will be the start of a steady increase over the next few years.

"With respect to our local horticultural industries, it needs to be remembered that the current stronger conditions follow the very difficult conditions experienced between 2007 and 2013."

Property values fell considerably during this period, and the initial improvement was a bit of a catch up, it advised.

Dryland farmers have just harvested a near record crop.

While grain prices have been dismal, many growers benefited from stronger prices for canola and pulse crops which has helped improve their average per hectare returns.

Graziers in the far west of NSW have continued to benefit from very strong meat and wool prices, with agents reporting strong demand being shown for any grazing properties listed for sale.

The current strong returns are however contributing to a very tight supply of grazing properties being listed for sale.

In the last half of 2016, there were three sales of substantial table grape enterprises.

The buyers were two separate international investment funds and a recently listed Australian agribusiness company.

Analysis of these sales indicates that table grape vineyard values have risen by over 25 percent during the past two to three years.

There has also been significant sales activity in smaller family farm sized table grape vineyards, with buyers being mostly existing growers seeking to expand.

Interestingly though, a number of buyers of these smaller vineyards have been fruit exporters, motivated by a desire for vertical integration.

It will be interesting to see whether this trend continues or these non traditional buyers pull back, wary of also assuming the production risk.

An almond and wine grape agricultural property on 18,135 acres is listed at 1 Thurla Road Mildura (above). The property currently has 565 acres of almonds, 291 acres of premier wine grapes, 16 acres of avocado & 250 acres of commercial Lucerne.

It is listed through John Morris and Michael Everard of Ruralco.

A 23.4 acre property in Merebein, 149 Channel Road, sold last October. It has 4 acres of Menindee, 3 acres of Red Globe, 2 acres of Crimson and 13 acres of Sultanas. The property features a 3 bedroom, 1 bathroom home, shed and pickers hut.