Property transactional activity in Central Queensland is continuing at a steady pace, with a number of recent sales across all market spectrums, according to national property valuation firm Herron Todd White.
After some good March rainfall, most graziers from the Central Highlands to the coast are entering the winter months with a fair body of feed, HTW notes in its June 2016 monthly property review.
Some offerings have been passed in at auction or alternatively have been withdrawn from sale as a result of firming vendor expectations.
Albinia, a 19,177 hectare scrub and forest grazing property located 180 kilometres north-west of Clermont, sold soon after being passed-in at auction for $11.5 million. The property last sold in October 2009 for $11.75 million on a walk in, walk out basis.
Allowing for the inclusions in the previous sale, the sale indicates an increase on the 2009 sale in the order of 12pc, according to HTW.
HTW identified an 8.5% increase in the median price trend for Central Queensland in late 2015.
“We put this down to the market moving on the back of a very strong cattle market, better seasonal conditions and resurgence in overall market confidence broadly,” the report said.
“For a period we saw land values for quality scrub country in that northern Wandoan and Taroom country lag behind their northern neighbours for a similar quality asset, especially when compared on an adult equivalent basis.
“Today it appears these values are now starting to catch up, demonstrated by the solid sale result of Glen Evis, a 1,951 hectare holding about 25 kilometres north of Wandoan via the Nathan Road purchased by the Dann family who holds Daldowie which adjoins to the north. The property consists of a well-developed Brigalow, Bauhinia and Bottle Tree scrub grazing block with standard improvements including a small opportunity feedlot operation.”
The property transacted in late October 2015 including cattle.
On a bare basis, it reflected $5.5 million ($2,819 per hectare) overall or on analysis reflected about $6,800 per adult equivalent ex-improvements.
This put it above previous district levels, when compared to Windrush, a similar sized holding to the north, which sold in April 2015 for price reflecting circa $6,575 per adult equivalent ex-structures.
“Both these sales are considered to factor in some adjoining owner premium however identify the market for good quality scrub holdings to be very strongly sought after,” the report said.
“Secondary holdings are not able to capture the same market and are finding it difficult to achieve a sale.”
Central NSW hot spot for activity
Meanwhile, central areas of New South Wales continue to be a hot spot for market transaction activity, according to the HTW report.
Sales in the Narromine/Trangie district indicate a strengthening of underlying dry land cultivation values of approximately 15pc over the past 12 to 18 months.
“Previously we have discussed the level of corporate sales activity across most areas of inland New South Wales and this activity continues, however the backbone of the rural market is always the farmer to farmer transaction and we are now seeing a substantial increase in this type of transaction,” HTW says in the May 2016 report.
Recent farmer to farmer sales in the Narromine and Trangie district have shown some strong increases in the underlying value of good quality dry land cultivation country.
Examples include the recent sale of Grainswood North.
This property is located 50 kilometres south-west of Narromine and is a 600 hectare open farming block with red brown and grey loam soils.
This sold under the hammer for just over $1.2 million. There were limited improvements and on an overall basis this equates to $2,042 per hectare or $826 per acre.
The adjoining property Grainswood was also put to auction and was passed in however sold soon after at an undisclosed amount believed to be around the $1.5 million mark. This property is 826 hectares in size and at $1.5 million equates to approximately $1,815 per hectare overall. The property included approximately 680 hectares of farming country with the balance open grazing.
“Both of these sales would be considered strong and indicate a strengthening of the underlying dry land cultivation values of approximately 15% over the past 12 to 18 months,” HTW said.
“There have been a number of private transactions in the area as well which generally involve neighbours purchasing adjoining holdings where we are also seeing slightly larger increases in the underlying land value.”
Source: Herron Todd White