Demand drives property prices to record levels

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landscape view of a paddock, dusty brown dirt and dried up grass with blue skies and grown tress ins the distance

As Property prices continued to astound right across the country on the back of good commodity prices, increased demand, and low-interest rates.

NSW wool, livestock, stud stock, and real estate specialist John Croake says several blue-ribbon properties were sold in NSW, and, with the huge demand for properties across the country, he is always on the hunt for

Acerage land in Charam Victoria. Green grass and blue sky while family pose standing next to the sold sign of the recent purchase.
An excellent result for the vendors and Purchasers on the sale of their property “The Gums” at Charam, Victoria.

more listings.

“Land prices had just gone out of sight across NSW, and any sizeable acreages, in my opinion, are 30 to 40 percent dearer than they were a couple of years ago. I am hearing some prime properties are making $10,000/acre,’’ he said.

“There was definitely a large influx of city people coming to the country with low-interest rates making properties really attractive. Potential buyers are being realistic and know rates can’t stay at these levels, but they are factoring this into their calculations.”

“We recently sold ‘Whyworry Park’ at Uralla for an extremely good price and the vendor was very pleased with the result. What we really need are more listings, especially in the central to the northern part of the state.’’

Victoria had also experienced a buoyant market with prices hitting $14,700 an acre in one instance.

Livestock and property specialist Steve Kelly said there had also been a sale that topped at $12,500 an acre.

“In the past couple of weeks, we have sold a 623-acre property at Charam, 30km east of Edenhope, for $5,070/acre. A fourth-generation farm, it was in need of a bit of loving, and was purchased by a neighbour, with the vendor very happy with the result,’’ he said.

“In the Douglas region, 463 acres sold for $5,100/acre while a river block of 320 acres sold for $4,000/acre. This was very arable country suitable to cropping and grazing with no improvements and typical of the current market.’’

WA rural property manager Rob McMillan says while record prices were being seen in the west, much pent-up demand had been put on the backburner.

“People are digesting the high input costs of cropping and coming to grips with the eastern European situation, which is casting some doubts in people’s minds,’’ he said.

“When it all settles down, and we come to terms with the Ukraine situation, there will be a boot in the market. With the price of canola above $1,000/tonne and land over here so cheap, people will be keen to get into it, but there is currently some caution however it will happen in the next 12 months.”

“Prospective purchasers have shown interest prior to properties being listed as they know land prices are good and commodity prices high.”

“We recently achieved a record price at the time of $1,030 per arable acre for a 6643-acre property in the King Lake region, 80km east of Newdegate. With a cropping area of 4786 acres and carrying 8000-10,000 top quality sheep, this was the best price in the eastern wheat belt for a very long time.”

This is excellent value for money. If you were looking at the same type of land in Victoria, you could add at least $6,000 an acre to this price.

Rob said AWN’s property arm in WA continued to grow.

“We are doing a lot in the south-east wheat belt and Esperance areas. The vendor of the Lake King property was very impressed with our service and the sale and had been promoting AWN, which is very satisfying for us. We know we are doing a good job when we sell a place and are then given another property in the same area because people are talking about us. Word of mouth is the best form of recommendation and advertising.’’

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