Market Update

VICTORIA & RIVERINA MARKET UPDATE

The spring selling season throughout Victoria and the Riverina regions has continued to witness excellent results over all asset classes despite seasonal and economic headwinds. We particularly acknowledge the hardships being faced by producers who have been impacted by the floods. Demand for well-presented and quality assets over a widespread list of locations and industry sectors are still outweighing supply with new and existing investors continuing to include agriculture as a focus for their portfolios. Particular regions of note that have experienced record results include the Riverina, South Gippsland and the Wimmera/Mallee. Buyer confidence has ultimately been underpinned by a combination of continued strong commodity prices, coupled with fewer available opportunities. Investor profiles have varied depending on the asset class, scale and price point, with family operators and institutional investors playing a key role in the sector at present. There has further been a continued focus by investors searching for regions that provide value propositions through either development or transformational opportunities. Looking ahead, there is some speculation that the rural property market may soften, off the back of rising costs of production, inflationary pressures and interest rate movements, however there is little evidence at this point of any shift in buyer sentiment.

Nick Myer

State Real Estate Manager - Victoria/Riverina 0427 610 278 nick.myer@elders.com.au