Western Queensland rural properties with grass reserves sell strongly: HTW Rural

Severe drought conditions over much of Queensland has seen attention focused on properties which have some grass reserves, particularly in central western and north-western Queensland, according to the latest rural report from valuation firm Herron Todd White.

The report found that there was strong demand for grass and properties selling with adequate pasture reserves.

13 properties in the central western Queensland region have sold in the past three months, compared to 19 sales for the whole of 2018.

Values are well above previous levels by up to 25% or more for the odd isolated sales.

The valuers noted, "We are of the opinion that values are at or near a market peak and we caution that this possibly brief period of strong demand could be a short-lived price spike."

"However, given the widespread drought conditions that have been and still are being experienced over much of the region for the past five to seven years, maybe the region’s values are just playing catchup to other areas of the state," they stated.

Lack of grass has most likely prevented some producers from listing their properties for sale, but reasonable rainfall in some areas of the central west has given those producers wishing to sell an opportunity to get out.

The report said Iinitial demand was from drought-stricken producers in the Northern Territory and Queensland, with some New South Welshmen now heading north.

"Some properties have sold to sheep producers for the first time in nearly 30 years."

"Some of the recent sales have been to producers who have had expansion plans in mind, but drought conditions have brought matters to a head earlier than expected. Therefore, once seasons return to widespread favourable conditions, a lot of these recent sales may not hit the market again in the short-term," it concluded.