Rural property values rise in country NSW: HTW
The valuation firm Herron Todd White have noted a significant rise in values in rural property in country New South Wales with strong correlations between what the rural market late 1990s and 2008.
In their May report, HTW said they are seeing sales volumes beginning to decrease and this is a function of the lack of available stock, creating stronger competition for any properties available, driving very strong growth in values.
"This is a replication of the market in 2006 to 2008 when once sales volumes slowed, the market strengthened considerably in a short time and then peaked," HTW said.
"While the actual peak varied slightly from area to area in New South Wales, generally speaking, late 2008 was near the peak of most markets.
"As mentioned we see the same situation developing in the current market and feel that the current pace of underlying land value strengthening is unsustainable over the medium term.
"We would expect that by the end of 2017 to early 2018 we may start to see some signs from the market that potential investors in agriculture are struggling to see returns that would justify their participation.
"Markets predominantly operate on confidence as well as hard returns.
"When people have confidence that the future looks positive and that their production will be able to be profitably marketed, we see purse strings loosen and expansionary activity undertaken."
