John Gunthorpe, Mark Barber: What to expect this spring selling season

With a rural property market that is delicately poised, what can buyers and sellers expect as the traditional spring selling season heats up?

Australia’s rural property market is delicately poised heading into a spring selling season where the lustre of the farmland values boom has faded.

Herron Todd White Victoria-Tasmania agribusiness director John Gunthorpe said the value of rural properties at the lower end of the market could be the most affected if there was a noticeable increase in listings to end the year.

“This will likely be very geographical and asset specific. Places like Tasmania and East Gippsland will likely be less susceptible to an increase in rural property listings due to a lack of supply over the past three years meaning demand has not been met in these markets,” he said.

“It is likely however that should a higher than average number of properties come to the market in some areas this will likely have a dampening effect on the local markets, especially in the $5-$20 million price bracket.”

Mr Gunthorpe also said there was a gap in the market forming, separating quality rural properties from the rest.

“It is now clear that the fever pitch of the past three years has subsided and purchasers are becoming far more discerning and undertaking thorough due diligence on potential purchases rather than being driven by a fear of missing out,” Mr Gunthorpe said.

Last week the Shorter family sold their 730ha cropping block near Wee Waa under the hammer, in a deal well above expectations.

“This has allowed institutional investors, both foreign and local, an opportunity once again to compete in the market which had been dominated by large family families, with well developed cropping and grazing assets over $30 million still well found in the market.

“Those properties which would be classed as secondary, properties in need of capital expenditure or add-on blocks are starting to meet some resistance unless an identified buyer is in the market.”

Last week auctions in northwest and central NSW returned mixed results, including the $8.8 million sale of Merino breeders David and Erica Shorter’s 734ha The Plains cropping farm, located 45km west of Wee Waa.

The Shaw family are selling their Holbrook station, ending a two-generation tenure.

In a major listing the Shaw family are selling their 1640ha Wantagong station, located near Holbrook, which is expected to receive offers worth $40 million.

Elders farmland agency and agribusiness investments general manager Mark Barber said so far listings this spring had remained relatively low.

“I am not anticipating any material increase in listings this spring compared to previous years,” he said.

“Low volumes indicate that property owners are confident of the fundamentals of the sector and outlook.

“Volumes of properties coming onto the market remain subdued compared to previous years.”