South East Queensland rural property sales begin to improve: HTW
The south east of Queensland has received good but patchy rain with parts having received up to 100 millimetres recently, according to Herron Todd White’s latest report.
The property valuation firm says that the band of rain has extended as far west as St George and Roma however these areas have only seen grass rain and not the high volume harvesting rain that so many had hoped for.
“Most irrigators in the St George region appear to have come up about one watering short, even on reduced plantings.
"It will therefore be interesting to see what effect this will have on yields.
"Picking is now underway, so all have their fingers crossed that it will stay dry for the next couple of weeks or so in order to allow picking to be completed,” the report stated.
It noted recent months have seen some very solid sales particularly within the Condamine region.
"Three that spring to mind that we feel are consistent with the market are the holdings of No. 4 approximately 75 kilometres to the west of Condamine and the aggregation of Woodlands and Karreel, approximately 40 kilometres south west of Condamine.
"Both comprise mixed farming and grazing holdings with the cultivation on each reflecting in the order of $2,200 to $2,250 per hectare.
"We would view this as broadly consistent with the market today; a market that has seen sound to good quality cultivation strengthen by upwards of $500 per hectare over the past 12 to 18 months,” the report commented.
HTW has also noted the mid to late 2016 sale of Cotswold in the same region.
It sold for $14.1 million including approximately $500,000 worth of plant.
It comprises 7,410 hectares of country including some 640 hectares of centre pivot country underpinned by a 1,600 megalitre storage.
Water rights include two unsupplemented entitlements as well as overland flow.
The sale reflected approximately $6,175 per hectare for the irrigation country and around $1,750 per hectare for the dryland cultivation.
This sale is also viewed to be broadly consistent with the market,” the report stated.
In very recent times, market activity appears to have come right off HTW says.
“We anticipate that this is not because the market is lacking confidence, rather it is more to do with a poor start to the season broadly felt by everyone.
"We feel that many potential vendors are holding off until more favourable weather conditions arrive.
"The cattle market is still strong and it will only take a couple of good falls within the farming belt in the next month or two in order for things to turn around,” the report commented.