THE rural property market in the Central West of New South Wales continues to maintain reasonable levels of interest, but listings have been somewhat subdued in the early stages of 2019 due to the drought and sub-optimal presentation factors.
“However any properties that have been marketed realistically have been selling, with the appetite to purchase still strong,” reported Herron Todd White valuer Allister Rodgers in the company’s April rural property review.
“A very active rural agent indicated recently that sales are still relatively strong on the back of limited listings,” Mr Rodgers said. “He indicated that 12 months ago there might have been ten to twelve interested parties in a listing, whereas now that number is five or six.
“This validates that the market is still active, and that orderly marketed and well-priced properties are moving at satisfactory rates.”
The more marginal areas of the New South Wales’ Western Division had seen a ‘definite slowing’ in sales, with very limited transactions occurring, Mr Rodgers said.
“The drought has a very big hold on a large area in the region and paddock feed stocks are all but exhausted,” he said.
“Stock have been sold down and that will continue, as no one is confident of a break in the season. Even goats are struggling for feed, especially tagged animals behind wire. We recently valued a medium-sized station in far western NSW with full goat fencing and saw only four kangaroos on a one-hour driving inspection – and they were under trees near watering points and weak.”
Potential over supply of listings after drought breaks
While current drought conditions continued, there would be limited offerings of property in the western areas of NSW, Mr Rodgers said.
“Our observations and discussions with agents indicate that when the season breaks properly, there will be numerous offerings of property – potential over-supply – and plenty of choice for purchasers,” he said.
“This would normally facilitate a flattening of rates and we expect that will happen. Overall, so far the drought has had some slowing of transactions and little effect on values and overall interest in rural property across the region, however early fodder crops and canola planting did not happen. Major rain events need to occur in the very short-term, as no one can afford another tough winter with no crop or pasture growing rainfall events,” he said.
“The major factor now and until there is a break in the season is cash flow and the confidence to service debt.”