Great Australian Bight land hits the market amid farm price surge

A near-5km stretch of the Great Australian Bight is for sale, giving buyers the chance to snap up their very own beach with spectacular coastal views.

A 1117ha slice of the Great Australian Bight has hit the market amid a surge in rural property values.

Running along Tyringa Beach, between Streaky Bay and Venus Bay, the property, known as ‘The Block’, features 4.6km of uninterrupted Eyre Peninsula coastline and consists of five freehold titles. It has been owned by the Cash family since the 1980s.

About 449ha is arable land and currently cropped with barley, with the existing operation running 500 ewes with lambs at foot.

CBRE Agribusiness’ Phil Schell, who’s managing the sale alongside colleague Angus Bills, expects the property to attract interest from a wide range of buyer groups.

An example of the spectacular views on offer. Picture: Supplied by CBRE

“We’re fortunate that we get to visit some amazing parts of South Australia in our line of work, but dragging ourselves away from The Block after visiting the site was a serious challenge,” he said.

“It’s a stunning piece of land by anyone’s standards, with postcard-perfect views up and down nearly 5km of Great Australian Bight coastline.

“We’re expecting significant interest from investors and land bankers, with the scope to lease the arable land for around $60,000 per annum, while The Block could even lend itself to a glamping-style tourism development.”

The landholding is expected to attract offers up to $5m, with the arable portion alone valued at about $2m.

The Block is one of several large rural holdings to have hit the market in recent days, from the Eyre Peninsula to the Fleurieu Peninsula and Limestone Coast.

The Eyre Peninsula property stretches across 1117ha. Picture: Supplied by CBRE

Four farming families have joined forces to sell a 2695ha cropping and grazing aggregation in the Calca, Port Neill and Wanilla districts of the Eyre Peninsula, which is expected to sell for more than $12m.

Other listings include the 1068ha sheep and cattle property Woodrise, located between Robe and Hatherleigh and owned by the Michell farming dynasty, and the 770ha St Vincents sheep and cattle grazing operation between Sellicks Beach and Hindmarsh Tiers, which has been listed for sale by the Just family following more than 100 years of ownership.

Those two properties are expected to sell for a combined value of more than $40m, following a surge in agricultural property values that has continued throughout the pandemic period.

In its recent Agricultural Land Price Outlook report, Rabobank reveals that Australian agricultural land prices have risen by more than 25 per cent so far this year, following a 27 per cent increase in 2021.

A combination of high commodity prices and good seasonal conditions has driven values higher.

Buoyed by the performances of their existing operations, local family groups are leading the investment charge, according to Mr Schell.

More views of the stunning coastline. Picture: Supplied by CBRE

“I think there’s a lot of generational property owners, and I say four, five or six generations that are building their portfolios,” he said.

“That’s where the investment and the interest is at the moment.”

However Rabobank warned in its report that higher farm input costs, surging interest rates and a softening of commodity prices would likely slow the rate of growth in 2023.

“The tide is turning slightly as the land market needs to take a breather after the staggering growth over the past 18 months, and also given the increased cost of finance and of farm inputs like energy and fertiliser,” RaboResearch general manager Stefan Vogel said.

“And there is also the likelihood of agricultural commodity prices and production volumes in coming years falling short of the exceptionally high or even record levels seen in 2021 and the first half of 2022.”

Expressions of interest in The Block close on November 3.