Time on market longer for western Queensland rural property

Time on market longer for western Queensland rural property
Time on market longer for western Queensland rural property

Poor rainfall in far western Queensland is an issue for many graziers with many predicting if decent falls are not received in May, then it is possible many may need to reduce stock numbers by selling or alternatively looking for off-farm agistment according to Herron Todd White.

In HTW's latest rural report, the analyst firm state producers in western Queensland have not been able to catch a break this year post that exceptional 2016 wet winter season.

HTW said the expectation of receiving some rainfall on the back of cyclone Debbie for landholders west of Roma has ended up being a non-event.

"This has been disappointing given the falls of between 50 and 140 millimetres recorded between Roma and the Great Dividing Range," HTW said. 

"Very little follow up summer rainfall was received and any benefit of the winter season was short lived with the prolonged hot summer days burning off the herbage. The reality now is that if decent falls are not received in May, then it’s likely graziers may need to reduce stock numbers by selling or alternatively looking for off-farm agistment.

"Many in cattle jobs are predicting yard numbers will increase in May which may result in a short term softening in the return per head.

The Bureau of Metrology’s climate outlook statement issued on 30 March 2017 largely indicates that the chance of above median rainfall for April to June 2017 for Western Queensland is only 30 percent to 35 percent.

With the season not necessarily showing too many positives, it is considered that the market for western Queensland has not recovered to the same extent as that of country further east. We are seeing the same holdings now marketed for extended periods.

"Some larger holdings such as Noorama Station, a 104,937 hectare holding 110 kilometres south-east of Cunnamulla in the salad bowl region has only just been put to the market under an offers to purchase campaign by Elders.

"Properties such as this will provide a good gauge of the corporate appetite for larger scale grazing country which to date has been mostly scrub type country.

"Any evidence that we are seeing stronger values are generally for better quality country or very well developed holdings. Marginal type country is still finding it difficult to achieve interest to get over the line and achieve a sale.

"The comparison to country further to the east has broadly reflected an increase in the median value of between 10 percent and 30 percent over the past 12 to 18 months."

Tags: 
Rural Market Southern Queensland

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