Sale activity slows in Mildura rural market: HTW
Sales activity appears to have slowed considerably over the past few months, according to the latest Herron Todd White (HTW) rural report.
The report suggests this is not surprising in the dryland cropping and grazing sectors given the impact of the drought in western New South Wales and poor crop yields throughout north-western Victoria.
"As expected, few properties are being put to the market, with prospective vendors biding their time until better seasonal conditions arrive before presenting their properties to the market for sale," said the HTW valuer.
In the horticultural space, there has also been little recent sales activity, stated the HTW report.
Late summer is typically a slow period, as many of the local producers are preoccupied with their harvests. Early reports suggest average to slightly above average yields for almond crops as well as table and wine grapes.
Good news for wine grape growers are prices of around $600 per tonne for most red varieties this season, which is 50% higher than what was being offered two years ago and should ensure continued investment by growers. The improved prices are less pronounced for white varieties such as Chardonnay.
"Irrigation water availability remains a key concern. The cost of leasing water is currently just under $500 per megalitre, which is a significant cost for those irrigators reliant on leased water," said HTW.
The risk of ongoing dry conditions in the catchment is affecting confidence and is considered to be contributing to a reduced number of horticultural property sales. Local agents also confirm reduced demand for greenfield sites, due mainly to the spike in water prices.
"A large-scale almond orchard in the Renmark region, which has further development potential, is currently being advertised for sale.
"The outcome will be keenly watched as it will be a good litmus test for corporate investment in the local horticultural space."
A 50 acres of freehold land in multiple tiles has been listed for $500,000 (pictured above).
The property at 104 &95-115 Etiwanda & Benetook Avenue comes with two bedroom home plus studio, car and workshop shedding, well established river red gums, cotton wood trees and garden.
It has been fenced into numerous paddocks with established improved pastures water by flood irrigation/drainage supply or low levels direct from the Murray River.
Another $720,000 - $770,000 listing in Mildura is a 11.6 hectare vineyard (pictured above).
Located at 3494 San Mateo Avenue, it comes with low level irrigation, electric pump, shed with workshop and cool room.