Rural property prices stabilising as $20 million sale buoys market
The rural sector has been buoyed by the reported $20 million sale of the Ballarat grazing property Trawalla.
It’s a 14-bedroom 1890s homestead along with 4,140 hectares of grazing and cropping land.
Its Elders listing agent Shane McIntyre has confirmed its sale, but declined to comment on the details.
The Australian Financial Review reports it has been bought by the Richmond family from Geelong.
The property, first settled in 1839, had several owners before it was built for Rear Admiral Bridges, who acquired it in 1887 through the marriage of the owners' daughter, Annie Wilson.
Recent reports put spring listings as subdued following good rains and bumper winter crops across much of eastern Australia.
Landmark Harcourt NSW state manager Phil Rourke has suggested listings this spring could be 30% fewer than last spring. It follows a 30% drop in listings of 40 hectares-plus in the first nine months of 2011 compared with 2010.
Property values across Australia’s rural property sector had recently begun to stabilise after nearly three years of value uncertainty, according to Colliers International rural and agribusiness director Phil Schell.
“Despite the fact that major activity is still dominated by distressed asset opportunities more buyers are in the market and more vendors are prepared to meet price expectations,” he says.
“Offshore investors are cashed up and are actively pursuing major asset opportunities of $20 million plus, but domestically it’s a different story.
“Although Australian buyers are showing genuine interest, they are cautious, and the recent debt issues in Europe and the US have only heightened this sentiment.
“Lending is still problematic.
“Buyers in the sub-$10 million market seem to be the most constrained, and this is slowing down market activity.”
Schell says the banks’ lending ratios just don’t seem to reflect buyer confidence.
He notes there has been strong enquiry from overseas funds, including South East Asia, the US, the Middle East and the UK, for opportunities in the beef cattle sector, particularly in northern Australia.
“Chinese investors have interest in large scale grain properties and expanding the opportunity to export oaten hay in to China.
“This is a new market, and interest is high.”
