GOOD rain in the next two months would help stimulate an otherwise generally quiet property market across southern Queensland.
Herron Todd White senior valuer Doug Knight said while market activity had appeared to have come right off in recent times, it was understood it was a direct of the poor start to the season.
“It’s not that the market is lacking confidence,” Mr Knight said.
“Rather it is more to do with a poor start to the season broadly felt by everyone. We feel that many potential vendors are holding off until more favourable weather conditions arrive.
“The cattle market is still strong and it will only take a couple of good falls within the farming belt in the next month or two in order for things to turn around.”
South east of Queensland has received good but patchy rain with parts received up to 100mm.
“The rain has extended as far west as St George and Roma,” Mr Knight said. “However, these areas have only seen grass rain and not the high volume harvesting rain that so many had hoped for.
“Most irrigators in the St George region appear to have come up about one watering short, even on reduced plantings.
“It will be interesting to see what impact this has on yields. Picking is now underway, so all have their fingers crossed that it will stay dry for the next couple of weeks or so in order to allow picking to be completed.”
Mr Knight said despite the relative lack of activity, there had been some very solid sales, particularly in the Condamine region.
“Three that spring to mind that we feel are consistent with the market are the holdings of No.4 about 75km to the west of Condamine and the aggregation of Woodlands and Karreel, about 40km south west of Condamine,” Mr Knight said.
“Both comprise mixed farming and grazing holdings with the cultivation on each reflecting in the order of $2200 to $2250/ha. We would view this as broadly consistent with the market today; a market that has seen sound to good quality cultivation strengthen by upwards of $500/ha over the past 12 to 18 months.
“There was also the mid to late 2016 sale of Cotswold in the same region. It sold for $14.1m including about 500,000 worth of plant. It comprises 7410ha of country including some 640ha of centre pivot country underpinned by a 1600 megalitre storage. Water rights include two unsupplemented entitlements as well as overland flow. The sale reflected about $6175/ha for the irrigation country and around $1750/ha for the dryland cultivation. This sale is also viewed to be broadly consistent with the market.”