Farm sales to slow but values to keep rising
The volume of farm sales could soon ease from their surging levels in NSW but values are expected to keep rising with strong demand, according to valuers.
The volume of rural land sales across Australia has largely mirrored that of NSW – the largest state by value – but could soon ease as less stock comes onto the market.
Herron Todd White’s national director for rural Tim Lane said demand had strengthened this year and convinced some owners to hold on instead of sell out.
“We think volumes will actually fall but the values will still go up with demand staying the same,” Mr Lane said.
He said good seasonal conditions, higher commodity prices and improved finances had lead to a clear rebound in values.
Farm sales in NSW.
Examples of higher values abound across the state but some areas such as Balranald, in Western NSW have broken records per hectare and sales are showing 23 per cent to 31 per cent increases from similar land sold in 2011.
Preston Rowe Paterson’s Mick Redfern said he was also noticing significant upward movement in values.
“The whole rural property market has been particularly buoyant in the last 18 months,” Mr Redfern said.
“Values in the last six months have gone up about 30 per cent and in some places as much as 40 to 50 per cent on what they would have sold for a couple of years ago.”
Beyond NSW there have been substantial gains made, especially in grazing areas.
The market for cattle stations kicked hard early this year following some major sales including billionaire Brett Blundy’s purchase of Macquarie operated Paraway Pastoral’s Walhallow Station in the Northern Territory for $100 million.
Early this year valuations for the major cattle station owners in Australia were released showing double digit gains.
The listed Australian Agricultural Company reported a 15.8 per cent gain.
HTW’s Tim Lane said that some purchases had appeared to be premium prices for land.
