Cattle prices drive agri property market
Two years of significant and sustained increases in the cattle market are driving demand for property. Elders Real Estate is expecting demand to continue, especially throughout South Australia and the Northern Territory.
Phil Keen, Elders rural real estate manager SA/NT, has been with the Company nearly forty years and has seen many different property market conditions – however, none quite like the current one.
“In South Australia the demand from the beef sector is particularly evident in the lower to mid-south east of SA. This demand has pushed the already buoyant demand from prime lamb and wool producers. In the grain growing areas demand is high – this demand is consistent across both lower and higher production areas and right across the state,” Mr Keen said.
“Most areas are seeing record prices per hectare, which is coming not just from larger farming operators and corporate investors but smaller family operations who have paid down debt and are now looking to expand and get ‘scale’ – this has been significant factor in demand growth across most parts of the state,” he said.
Whilst in the Northern Territory, Elders rural property specialists are finding there is more appetite to buy cattle properties than sell under the current market.
“This is expected to continue strongly whilst the cattle market remains where it is – if the cattle market softens that may mean some thoughts to sell, however the question then is – where to invest those funds,” Mr Keen explained.
Elders Real Estate negotiated the sale of about $890 million in farmland last year and about $3.8 billion in residential properties. It also manages 62,470 properties through metropolitan and rural Australia.
“We have a tremendous source of understanding, knowledge and real estate intelligence within our real estate group. Understanding clients’ needs is the key for our people, having that as our focus offers great satisfaction and makes the whole sales process very rewarding,” Mr Keen said.
General Manager Elders Real Estate, Tom Russo says “It’s an exciting time to be an investor in Australian agriculture as we see a perfect storm of robust commodity demand and prices, combined with low interest rates, creating unprecedented interest in quality Australian agricultural assets.”
This environment has resulted in Elders Real Estate’s national team of rural property specialists seeing an unprecedented level of interest from both foreign and domestic investors, and has given rise to strong appreciation in land values throughout key agricultural regions nationwide.
“Demand is outstripping supply, particularly with respect to quality aggregations of scale,” Mr Russo said.
Elders has recently released a bi-monthly property magazine, Elders Estates, which presents a selection of properties being offered for sale nationally through the network of rural property specialists.
“We are committed to an ongoing investment in having professionals “on the ground” who have an unsurpassed knowledge of their local areas. This team works seamlessly with our capital city and international representatives to ensure that our clients’ real estate assets are marketed as effectively as possible to local, corporate and international buyers.”