NORTHERN Australia’s pastoral property market is on fire.
Darwin-based Herron Todd White valuer Frank Peacocke said sales of properties in the NT and Kimberley will hit a staggering $417.2 million.
“In the year to date and assuming eight sales currently under contract actually settle (five of these are with the FIRB), the total sales of pastoral real estate in the NT and Kimberley will have reached a staggering $417.2m,” Mr Peacocke said.
“This represents 21 transactions, 76,866 square kilometres, a combined current carrying capacity of 285,000 AE, an average of $1464/AE and an average of $5398sq km.”
Some $307m of the sales are in the NT and $110m in the Kimberley.
Mr Peacocke said the 2016 year to date result compared to the $181m sale of 14 pastoral enterprises in 2015. That country a carrying capacity of about 170,000 adult equivalents (AE) and an improved average beast area value of $1060/AE.
“It’s the drastic increase in sales activity that occurred in 2015 compared to the previous five years that is interesting,” Mr Peacocke said.
“In 2014 there was $66.8 million in total sales or an average of $35.1m per annum over the five years to 2014.”
Mr Peacocke said there had been some lump sums paid in 2016 including around $110m in QIC’s 80 per cent acquisition of NAPCO’s Alexandria and Mittiebah aggregation, around $49m by Asian investors for a 50pc stake in the Tipperary Group (Litchfield, Douglas West and Tipperary), $40m by Asian investors in the SAWA aggregation in the Kimberley (Moola Bulla, Beefwood Park and Shamrock), $70m by KAI (Chinese developers of Ord Stage II) for Carlton Hill and the recent contracted sale to Hancock Prospecting of Riveren and Inverway.
“The above sales show that pastoral land values have all strengthened during 2016 but at varying rates depending on the region,” Mr Peacocke said.
“The highest value rate paid ($/AE) has been for the 50pc acquisition of the Tipperary group of stations in the Top End district, reflecting the strong premiums traditionally paid for stations with close proximity to Port of Darwin, rare floodplain country and a mix of pasture improved country.
“The resale of Riveren and Inverway in the Victoria River District still requires final analysis however is looking to indicate a moderate lift in $/AE value rates over the 34 months between sales.”
Mr Peacocke said an analysis of the Alice Springs region was distorted with a small number of very strong sales, but values appeared to be generally strengthening, particularly for well grassed, well stocked properties.
“The Barkly Tableland is also traditionally very tightly held but has yielded $165m worth of sold property in 2016 and also indicates moderate lifts in value rates generally in line with market expectations given the strong outlook for cattle markets into the foreseeable future.”
