Family agribusiness empires push red hot rural property market higher

Australia’s rural property market is hitting unprecedented heights across all classes of land and experts say there is no sign it will slow anytime soon.

Tim Lane, a national director with independent valuation firm Herron Todd White, said the market had surpassed the 2008–2009 period that had been regarded as the peak.

Mr Lane said this year’s prices were exceeding all those sales.

“People are paying big money and it’s across the whole country,” he said.

“It’s large families, smaller families, and probably the market where it has got a bit harder is the new entrant into the market, just on the rise of the values.”

While the details of many bigger deals are going undisclosed, it is estimated some of the top prices being paid are more than a hundred million dollars for holdings.

The sale of grazing and cropping farm South Callandoon, near Goondiwindi, and the enormous Gulf cattle breeding station Miranda Downs earlier this year, are suspected to have fetched enormous prices.

This year has also seen northern Australia’s largest citrus grower sell to another Australian entity in a deal worth $220 million.

High commodity prices and low interest rates

After years of drought and many graziers selling stock, the diminished numbers and resulting shortage have pushed prices for both cattle and sheep continually higher throughout this year.

Mr Lane said it was those booming commodity prices that were helping but said he felt the current rates for finance had slightly more influence.

“I think the interest rate outlook is probably the biggest driver in all honesty and I think people in commodity markets understand they will go up and go down,” he said.

The Maranoa region in south-west Queensland, located 500 kilometres west of Brisbane, is seeing a property boom with huge demand meaning record prices.

Roma-based property agent Daven Vohland said he had seen the gavel drop on 100 per cent of property auctions this year and prices were increasing monthly.