Southern Queensland rural property market on a run: HTW

Southern Queensland rural property market on a run: HTW
Southern Queensland rural property market on a run: HTW

The southern Queensland rural property market is on a run, according to a recent report by Herron Todd White.

HTW said it is obvious that the increase in the market to date has not been consistent across all the regions but there is a broad level of momentum building.

"There are sectors and industries out there that always lead and this time around it would appear to be no different with cattle again appearing to be the catalyst for demand," he said.

"Hindsight is a wonderful thing but given that there has now been a shortage of cattle in Australia for the past 12 months or so, the likelihood of an upward market adjustment of this nature occurring was always on the cards. The issue is however how far will it go?

"The golden triangle of Taroom, Roma and Wandoan has set the pace.

"It is now evident that over the course of the past 12 to 18 months, the market within this sector has risen by 25% to 35%.

"In some instances where adjoining owners are involved, this increase is even higher.

"Recent settled sales include Bracco, north-west of Roma selling in September 2016 for $2,439 per hectare ($1,000 per acre in old terms); Myrnong in
a similar location selling at auction for $2,523 per hectare (just over $1,000 per acre) and Nardu north- east of Roma selling for $2,151 per hectare ($870
per acre).

"This evidence would suggest that where previously it was accepted that an adjoining owner had the ability and was prepared to pay a premium, that premium was in the order of 10% or so; one fully justifiable. However that accepted level is no longer evident.

"We would suggest that such premiums could be as high as 20%. Whether they are justi able or not is another question and one that can only be answered by the buyer.

"We also note a run on irrigation country on the inner downs. Sales advised as occurring, but yet to be fully con rmed include Warra Warra at Brigalow, Bandawing south of Bowenville and Campbells at Tummaville.

"Initial unconfirmed evidence would suggest that there is some market movement occurring in this sector as well, but until they settle, we cannot confirm to what extent.

"It is also common knowledge that Clover Downs at Cunnamulla has also gone for circa $27 million. The corporate owned holding of 125,295 hectares is a trophy holding that was acquired by Hassad Australia in July 2010 for $18.576 million. If this sale proceeds, it will reflect an increase in the order of 45% over seven years.

"The big takeaway from all this is that the evidence suggests that the upward market adjustment is not just limited to one sector. Broadly we are seeing a uniform adjustment in the market, something that has not been seen for a long time."

A 5,911 Ha property in Roma, named Araby, is on the market for $2,336,960.

It is situated 96 kms south west of Roma and has 11kms of gravel road.

The property is fenced into 9 paddocks with 75% of fencing renewed in the last 6 years.

Tags: 
Rural Property Southern Queensland

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