Biggest Qld farm sales of the year as rural market nears its peak

Queensland’s rural property market is facing an uncertain future after unprecedented price growth. SEE 10 OF THE BIGGEST RURAL PROPERTY SALES.

This property at 1477 Womblebank Gap Road, Injune, sold for $18m.

QUEENSLAND’S rural property market is facing an uncertain future after unprecedented price growth, which saw the value of farmland in the state almost double in the past three years.

Values are holding firm so far, but industry players say rising interest rates, a sharp fall in beef prices, and softening commodity prices are starting to temper buyer enthusiasm.

There has also been an uptick in large operations and aggregated holdings being purchased by

institutional investors.

The ‘Gemfields’ portfolio near Emerald sold for $65m.

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Herron Todd White director Bart Bowen said a shortage of rural properties was keeping the southern Queensland market strong, but it was nearing its peak.

“With a general lack of properties available and strong buyer competition assisted by previously low borrowing costs and strong commodity prices, particularly in the beef industry, the market has continued to strengthen though has begun to show signs of peaking since the end of 2022 and into the start of 2023,” Mr Bowen said.

‘Allambie Farm’ changed hands for almost $25m.

“When monitoring continued sales activity on a region-by-region basis, we are seeing a greater number of sales occurring at prices in line with sales of similarly developed property in the area over the past 12 to 18 months, and less sales considered to be setting new benchmarks in prices.

“The prevalence of property passed in during the auction process appears to have increased, though clearance rates remain relatively strong.”

Rabobank’s annual Australian Agricultural Land Price Outlook found agricultural land prices recorded double digit percentage growth on the previous year in all states.

‘Stuart's Creek’ near Roma sold for more than $30m.

The bank’s analysis showed farmland prices across the country rose by 29 per cent in 2022, with cropping land increasing by 29 per cent, livestock grazing land by 26 per cent and dairy by 29 per cent.

The report found agricultural land deal sizes were also increasing, especially in Queensland and NSW, where 22 per cent and 14 per cent of sales, respectively, exceeded $10m.

Auburn Station, 104km north of Chinchilla, sold for $25m. Picture: Realestate.com.

Some of the biggest rural sales of the past year in Queensland include the sale of the 4389ha Gemfield portfolio, near Emerald, for $65m, reportedly to Canadian investment group Manulife, and Emerald citrus grower Craig Pressler.

More recently, ‘Stuart’s Creek’ near Roma was sold by Packhorse Pastoral to Queensland Investment Corporation in a deal expected to be worth more than $30m.

Paniri Agricultural Co. paid $29m for an aggregation of three adjoining cattle stations in far north Queensland, called the Holroyd Aggregation.

The 'Holroyd Aggregation' in Cape York, sold for $29m.

A major central Queensland farming family added another cattle station to their expansive holdings, paying almost $25m for ‘Allambie’, a 4300ha property near Clermont.

Meanwhile, 200km east of Clermont, the 4077ha ‘Moranna’ station was sold by central Queensland cattle breeder Pat Moran for $16.35m, and ‘Auburn Station’, a cattle breeding property in Queensland’s western downs region, sold for $25.1m.

“We have never had such good farming conditions as we did in 2022,” Ray White chief economist Nerida Conisbee said.

“While particularly good Australian weather conditions were the major driver, so too were poorer conditions elsewhere around the world.

Ray White chief economist Nerida Conisbee.

“We were producing a lot, while others were producing far less. As we came out of the pandemic, people began spending more. The Ukraine conflict further complicated wheat markets.”

Ms Conisbee said those factors resulted in total agricultural production exceeding $90b, with Australia’s two main agricultural products — wheat and beef — accounting for a third of all production by value last year.

She said the strong performance in wheat and beef had a strong flow-on impact to farming communities and farm values, resulting in record house price rises in many wheat and cattle farming regions.

But Ms Conisbee said the outlook was more uncertain.

This property at 1477 Womblebank Gap Road, Injune, sold for $18m.

The Australian Bureau of Agriculture, Fisheries and Forestry (ABARE) has forecast that the value of agricultural production will fall by 14 per cent next year.

“Dryer conditions across Australia are the main driver, however better production overseas is expected to impact values,” she said.

“While wheat and rice prices are likely to increase, the same is not the case for beef. While it is now our highest value commodity item, cattle prices have halved from where they were in February 2022.”

Meat and Livestock Australia forecast that prices will continue to fall marginally over the rest of the year.

10 OF QLD’S BIGGEST RURAL PROPERTY SALES OF 2022/23

*’Gemfields Portfolio’, Emerald, $65m

*’Stuart’s Creek’ near Roma, $30m-plus

*’Holroyd Aggregation’ in Cape York, $29m

*‘Auburn Station’, Auburn, $25.1m

*‘Allambie’, near Clermont, $24.6m

*1477 Womblebank Gap Rd, Injune, $18m

*‘Moranna’ station, central Queensland, $16.35m

*’Granite Vale’, north of Rockhampton, $14m-plus

*’Rydan’, north of Rubyvale, $14m

*2029 Goodar Rd, Goondiwindi, $11m