Sales suggest values remain at pre-coronavirus levels in Mildura: HTW

Farmer confidence levels are remaining relatively high, even though the rest of the economy is feeling the effects of Covid related uncertainty, according to the latest report from valuation firm Herron Todd White.

There are still some rural sales occurring, and there does not appear to be any initial signs of any reduction in value.

However, agents are reporting that the tighter border restrictions are limiting the ability of corporate buyers to inspect and do their due diligence. While the internet can provide a good overall sense of a property, buyers still want to ‘kick the dirt’. We are aware of at least one case where this inability to cross borders is holding up a sale negotiation.

This restriction is exacerbated when international buyers are involved, and it is currently difficult to see how any international travel will be possible in the next 18 months. Meanwhile the reduction in the Foreign Investment Review Board (FIRB) threshold down to $0 caught many by surprise.

There is a significant cost and also time delays involved with navigating FIRB requirements, and this cost becomes more significant as the property value reduces. We are also aware of a one case where the change has delayed a sale.

Whilst we are aware of a number of sales which have been negotiated in the ‘Covid-19’ period across a number of industries, we are not at liberty to disclose finite details as yet until such sales are finalised and settled.

A table grape sale in the Robinvale area, a small citrus orchard in the Nangiloc area and a dried fruit property within the Mildura Irrigation area suggest that value levels have remained firm at pre-Covid levels.

We are also aware of a large dryland cropping holding which has transacted (not settled) to the north-east of Mildura in New south Wales which will show levels slightly firmer than pre-Covid values.