Mildura rural market sales activity down: HTW Rural

Mildura has seen a lower volume of rural sales during the first half of 2019, which is not surprising given the extremely dry start to the year, according to Herron Todd White's latest rural report.

The financial valuation firm found, there is evidently still demand for better standard rural assets, and the sales which we have seen suggest values are holding at similar levels to 2018.

Time Lane, the Rural Director of HTW, wrote "A well managed 131-hectare wine grape vineyard located to the north of Mildura has recently sold at levels which show an average $32,250 per hectare for the area planted to vines."

"The vineyard has a history of good yields and relatively low costs, but also contains a high percentage of Chardonnay, which currently offers lower returns per hectare than most other varieties," he said.

The lower Australian dollar is helping maintain stronger prices for wine grapes and HTW say there is a feeling of optimism that returns will continue to improve.

The table grape industry has enjoyed another successful harvest, with fruit quality mostly good and strong export prices.

The valuers said, "we expect to see growers continue to plant new varieties, which will see ongoing demand for the remaining vacant land parcels in the irrigation districts."

"A corporate buyer recently acquired an 85-hectare aggregation in the Red Cliffs district, planted mostly to table grapes," they concluded.