They say that the only thing constant in life is change, and we are certainly seeing plenty of that in the broadacre rural scene. A low interest rate environment, recent good seasons in most spaces, strong commodity prices and a general lack of supply are all adding up to what translates in many regions to record asset price growth and some very happy farmers.
Nutrien Harcourts Rural Property Agent, Adrian Smith, is based in Ballarat and says property is hitting a new peak in regional areas – benefiting many landholders and farmers.
“It is interesting to note we have had a couple of what the broader market would consider to be larger corporate style properties in the Western District of Victoria sold and split up recently, divested to mostly local farming families, in several smaller parcels. This could be a sign that corporate or foreign buying activity has dropped off, and have been either electing to sell and take the recent gains, or on the flipside if they are wanting to buy they are missing out buying due to the higher prices being achieved from demand from the locals splitting up the pie,” says Mr Smith.
‘Corporate’ or larger scale farming families are currently in expansion mode, scaling up or adding onto their existing operation and have the borrowing capacity to seize the opportunity when it presents. Mr Smith adds, “at the moment, with lack of supply, a lot of buyers with the available funds are paying to just secure the property, particularly if it is next door or compliments their existing setup. Many are also purchasing for the next generation.”
Mr Smith says with a buoyant market and a hunger for more land, particularly in the broadacre cropping space, they are also seeing quite a few ‘off-market’ sales, or ‘over the fence’ sales.
“We do get involved in some off-market sales from time to time, this is usually driven by the vendor’s situation, desire for privacy or what is perceived to be an easy sale. While it may seem easy, my concern with this method is if the property is not exposed to the broader market you don’t know who else is wanting to buy, so you really don’t know what you are missing out on. You only get one shot at selling your place, I have always said it is a great way to buy, but there are better ways to sell.”
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