Posted by: Charles Stewart Western Victoria

Spring Rural Property Preview

29th August, 2023

๐—ฆ๐˜„๐—ถ๐—ป๐—ด๐˜€ & ๐—ฅ๐—ผ๐˜‚๐—ป๐—ฑ๐—ฎ๐—ฏ๐—ผ๐˜‚๐˜๐˜€ ๐—ถ๐—ป ๐˜๐—ต๐—ฒ ๐—ฅ๐˜‚๐—ฟ๐—ฎ๐—น ๐—ฃ๐—ฟ๐—ผ๐—ฝ๐—ฒ๐—ฟ๐˜๐˜† ๐— ๐—ฎ๐—ฟ๐—ธ๐—ฒ๐˜


The immediate key drivers in the rural property marketplace are commodity prices, seasonal conditions and the economic climate, whilst there can be different factors driving the medium and long term outlook.
โ€œThe perfect stormโ€ in the agricultural sector couldnโ€™t go on forever, particularly in reference to record red meat prices, high grain returns, low interest rates and a run of favourable seasons. 
Despite this, interest in rural property remains strong if early spring enquiry is any gauge, with buyers taking a longer term view.
Whilst grazing and cropping land prices have softened by 10 to 20% from the lofty times of the spring of 2021, conversely we have witnessed dairy farm land prices increase by approximately the same margin during the same period.
The traditional start of the spring selling season in Western Victoria commences around the Hamilton Sheepvention in the first week of August. Whilst producers are more cautious in attitude given the reduction in sheep, lamb and beef prices, strong fundamentals still underpin the rural property market. Buyer enquiry in this market sector has a broad demographic, from off-farm investors, interstate farming families, to district, local and neighbouring buyers all wanting to consolidate.
The cropping sector has been buoyed by the Ukrainian War, the recent lifting of barley tariffs in China, and more particularly the relatively minimal and flat labour structures, in comparison to other agricultural sectors. After a wet start, the crops in Western Victoria appear promising.

The swing to the reliance of domestic milk and associated products appears to have galvanised the sector to some degree against international volatility, with the Australian milk pool the lowest it has been since the mid 1990โ€™s. This alone is a positive factor looking forward for the dairy industry, notwithstanding current near record farm gate milk prices.

Whilst we are witnessing some economic turbulence internationally which is translating to us on a national level, the AUD is 64c US and other than a couple of blips, is the lowest is has been since 2009. One would have to think this is of significant assistance to our agricultural exports and rural land prices.

If you're thinking of buying or selling, now is the time to contact one of our rural real estate specialists!

Nick Adamson, Director

p) 0418 571 589

e) [email protected]

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