9 minute read
Queensland
Double digit growth in rural property values in 2021
The rural property market performed strongly in 2021, Elders analysed data provided by Corelogic which suggests a 13.6 per cent (pc) increase in the national median price per hectare to the end of September. Elders Head of Agribusiness Investment Services, Mark Barber shares his thoughts on the market in 2021.
National rural property performance
Year Median $/ha % change
2018 $ 5,061 7.7% 2019 $ 5,520 9.1% 2020 $ 5,999 8.7% 2021 $ 6,815 13.6%
Data: Corelogic, analysis by Elders. This analysis is current to the end of September 2021 and includes all eligible farmland transactions above 40 hectares. The current growth phase for rural property values is being driven by low interest rates, strong commodity prices and generally favourable seasonal conditions aligning with periods of relatively high prices across most major commodities. These factors have boosted farm profitability, increasing debt servicing capacity. Higher farm incomes, strong balance sheets, and low debt cost are making family farmers strong competitors for rural property. Institutional and corporate investors are also looking for investment opportunities as rural property is seen as a long duration, capital secure asset class producing competitive returns. Looking at 2021 more closely the market has aligned for several industries specifically beef and grain. Wet conditions have aided restocking and led to bumper crops around the country. Queensland has experienced a boom in transactions off the back of rainfall opening options for beef producers. While elsewhere in the country, grain farmers have enjoyed a rare luxury of favourable seasonal conditions, high yields and high prices, Western Australia is the state with the most to gain from this situation and our analysis suggests double digit growth is indeed on the cards for the third year in a row. In terms of transaction volume, the analysis has suggested increased activity in Queensland, New South Wales and Western Australia, continuing the momentum from late 2020. This is significant considering there has been an increase in median price per hectare despite increased supply in these states, something which demonstrates the current confidence in the agricultural industry. Elders looks forward to continuing to provide analysis on Australian rural property using Corelogic data with the intent to provide our customers and the broader industry with valuable insights in 2022.
QUEENSLAND
QLD Market Update
TOOWOOMBA AND DARLING DOWNS
The Toowoomba and Darling downs region is experiencing a very strong surge in buyer activity for all types of Rural, Equine and Lifestyle properties. Properties that are within 30 minutes of the city are in the highest of demand, with buyers willing to pay a premium to secure such a property or by locals who take the opportunity to expand when these quality properties come on the market. Our city of Toowoomba continues to grow with various new ventures, which in turn brings new expertise and families to our region who want to be a part of the community and in turn are purchasing realestate. Add to this, buyers from other agriculture areas who are experiencing a very rewarding period in their grazing and cropping enterprises, are now able to enter our market to buy their retirement property or bases for Cattle or Horse operations, which the Downs can offer. This was evident with the types of buyers who have purchased our last 6 properties. As I tell my buyers, if you purchase a rural property here in this location, you haven’t purchased a farm, you have purchased a quality piece of real-estate which is positioned for an exciting future. Trevor Leishman Rural & Development Real Estate Sales
BUNDABERG REGION
After receiving in excess of 900 mm of rain during the spring months, the local growers are rejoicing with the odd exception being the local small crop growers having witnessed a lot of crop damage due to the excessive rain over the 3-month period. This has dramatically affected the fruit quality and quantity reaching our national food retailers. On the other hand, the Sugar Cane Growers have had the best start to a season for many years and combined with increased raw sugar pricing set to increase they are looking forward to strong yields over the 2022 growing season. Our Bundaberg Office has secured the marketing of a local Blue-Chip Macadamia Investment being the sale of the renowned “Macadamia Enterprises”. This aggregation is quite arguably one of the best orchards to be found either in QLD or NSW and has been developed from the ground up by the Manera Family. The asset covers approx. 390 Hectares with 340 Hectares planted to 106,000 Macadamia Trees that has production yields well above the national benchmark and includes first class infrastructure. This award-winning asset also is heavily focused on our environment after recently receiving awards for Net Negative Carbon Emissions. Baden Lowrie Rural Property Specialist
CENTRAL QUEENSLAND
The Central Queensland property market continues to remain very strong in both demand and values for all descriptions. Values for farming and grazing land has steadily increased over the last 18 months with prices ranging from $1200 to $1500 per acre for quality grazing country on larger holding, with sales showing values reaching up to $3000 per acre on the smaller properties. Agricultural broadacre farms are showing returns in excess of $2000 an acre. Seasonal conditions have been very patchy throughout most of Central Queensland. Early storms in October 2021 brought a welcome relief for much of Central and Western Queensland with some areas benefiting from good follow up rains through the Christmas period. However very hot days and dry winds are having a serious effect on current pastures. Demand for properties remains very high however there is a definite shortage of properties coming to the market. Virgil Kenny Rural Property Specialist
BOWEN, QLD 1,222.71 Hectares / 3,021.38 Acres
Exceptional investment scale Horticulture and Mango production in the highly productive and renowned Bowen district in the Whitsunday region of Queensland. • Expressions of Interest for whole aggregation on WIWO basis • Total aggregation 1,222.71ha | 3,021.38 ac* • Spanning 8 properties with 15 titles • Water security 4,125.8 ML water rights* • Extensive water infrastructure (including underground irrigation throughout) and storage • Water drawn from on-farm storage, bores, Don River and overland flow • Significant land improvement, including water harvesting, drainage and reuse initiatives • High quality soil types suited to high value horticultural use • Current production area of 628ha with further 100ha cleared* • 20,300 mango trees* • Trellis grown tomatoes including cherry, gourmet and roma varieties • Close proximity to the Bruce Highway and Whitsunday regional airport • Extensive plant and equipment including packing shed with cold room storage • Excellent farm manager and workers available for continuing role A rare opportunity to acquire an investment scale asset in a time of unprecedented demand growth for Australian agricultural land holdings. Expression of Interest Inspection by appointment Robert Murolo 0418 799 934 robert.murolo@elders.com.au Mark Barber 0427 603 433 mark.barber@elders.com.au Elders Mackay eldersrealestate.com.au/23113565
DIMBULAH, QLD 37.84 Hectares / 93.50 Acres
The Dimbulah district in Far North Queensland is a well-known hub for tropical tree orchard production and is renowned for the finest quality fruits. Sitting only one hour twenty-nine minutes from the Cairns international airport with an approximate elevation of one thousand three thirty-two feet it makes for an awesome climate to live in. The major hub of Mareeba is only forty minutes’ drive and caters for all types of farming support mostly done in house. Located in a family friendly area and sitting near the banks of a Walsh river reach allows this farm to have a lifestyle that caters for work and play. The property features water security with a one hundred and twenty four meg allocated water licence and large spring fed dam with farm reticulation that supplies all of the orchards requirements. A Bitumen access winds through past the fully airconditioned and renovated main homestead and staff accommodation , machinery and packing sheds. The orchard of approximately eight thousand mango trees comprise of five different varieties that meander off in immaculate straight rows. Family owned this property is outstanding. • Spring fed water source to supplement water licence with pumping station • Fully renovated three-bedroom airconditioned home with vehicle shed • Commercial pack shed fully accredited with large storage sheds and workshop • Staff air-conditioned quarters with indoor and outdoor kitchen areas • Farm water reticulation • Large inventory of equipment in excellent order • Leisure camping area also with river access to a great camping site
Inspection by appointment Chris Atkinson 0429 342 944 chris.atkinson@elders.com.au Elders Mareeba eldersrealestate.com.au/23131800
BUNDABERG, QLD 390.67 Hectares / 965.366 Acres*
A rare institutional grade macadamia nut investment opportunity. Exceptional and growing yields. Net Negative carbon emission. Macadamia Enterprises, one of Australia’s largest macadamia nut orchards, produced 1,478 tonnes of macadamia nuts (in shell) at 10% moisture in 2021 from 343.53 hectares planted to macadamia trees. Since 2020 the orchard has been producing premium nuts with a net negative carbon emissions profile due to a 10-year intensive soil health program. • Total planted area 343.53 ha, 106,446 trees - weighted average age of 11.3 years • 2021 nut-in-shell production of 1,478 tons @ 10% moisture. 4-year average – 1,223 tons • 24% of trees planted after 2014 are forecasted to produce up to an additional 430t once mature • Water security – bore water allocation totalling 1,626 Megalitres, fully automated irrigation plus 2 storage dams • State-of-the-art nut receival, cleaning and sorting facility • 10 farms in total, 6 farms adjoining with remaining farms within 3 km radius of nut processing facility and central operations hub • 5 homes and numerous machinery sheds, full plant and machinery available • Certified net negative carbon emissions, -593kg CO2 e t of nut in shell produced in 2021 This aggregation is an award-winning asset and highly regarded as the benchmark of macadamia production in the Bundaberg Region. The detailed Information Memorandum is available to download on the project web site www.macadamiaenterprises.com Expression of Interest Closing Friday 25th March, 4pm Baden Lowrie 0427 172 158 baden.lowrie@elders.com.au Mark Barber 0427 603 433 mark.barber@elders.com.au Elders Bundaberg eldersrealestate.com.au/23325770 *denotes approximately
