DEMAND is heating up for forest breeding country in North Queensland.
Townsville based Herron Todd White valuer Roger Hill said there was currently a shortage of forest breeding country on the market, particularly in the Burdekin River Valley from the Belyando in the south to Mount Garnet, Einasleigh and Georgetown in the north.
There was also market disrupter in the form of the Department of Defence, which was acquiring land in the Greenvale district.
Mr Hill said as the year progressed, the market was likely to spike.
“If you like, the property clock is likely to rise from the nine o’clock position towards 12 o’clock,” Mr Hill said.
“Depending on how the defence negotiations play out, this market may see record values later in the year.
“Landholders that have sold to defence are likely to re-enter the market as buyers with significantly enhanced cash and reduced debt to acquire replacement cattle stations.”
Mr Hill said there was likely to be some overflow of demand into neighbouring regions. These included the Desert Uplands and the Hughenden basalts and also Georgetown, Einasleigh and Mount Garnet areas.
“If you can recall the peak of the last property cycle, vendors could sell anything and quickly,” he said. “Market absorption rate was high, marketing periods were being measured in weeks and the newspapers wrote about standing room only at the auctions.”
Mr Hill said These market selling conditions may well occur later this year in this particular market area. It may be that expression of interest marketing strategy replaces the auction room though.
“During the peak of the seller’s market conditions, the market starts to become naive to how hard the country is, what condition the land is, weed status and the economic profitability of the property.
“Vendors know this and perhaps there are property owners who will seek to market their property while the opportunity of good prices is around.”
ROGER HILL’s ASSESSMENT DISTRICT BY DISTRICT
Substantial recent rain. Steady sale volumes. 7 to 9 o'clock on the property clock. $500/ha ($202/acre) for forest country with no improvements. $1000 ($404/acre) to $7400/ha ($3000/acre) depending on the split of forest to improved pastures. Recent years has seen stable market conditions with stable sale values. There does not appear to be an over supply or increase in demand to fuel reasons for change in values.
Burdekin Valley - Belyando, Charters Towers, Pentland, Greenvale to Einasleigh and Mount Garnet
Initially dry, patchy recent rain. Good recent rain. Lack of property listings. Liquidity is expected to increase throughout the year. 10 to 12 o'clock. South of Charters Towers - $165/ha ($66/acre) to $470/ha ($190/acre) bare improved. North of Charters Towers -$51/ha ($20/acre) (Granite type eucalypt forest country), $186/ha ($75/acre) (mixed average type basalt and some granite forest), to $374/ha ($151/acre) (good open basalt).
There have been few sales since a spate to the south of Charters Towers in 2015, including a steady volume of sales on the basalt to the north of Charters Towers. Positive increases are being talked about once the defence acquisitions occur.
Late, patchy. Good falls in areas. Thinly traded market area. 8 to 10 o’clock. $73/ha ($29/acre) to $96/ha ($38/acre) for desert type forest and up to $338/ha ($136/acre) bare improved occurred in the Prairie area with broken black soils mixed with the forest).
Quiet market area that is often overlooked, yet provides a low operating cost enterprise option with better productivity on the broken country types and creek systems.
Basalts north of Hughenden
Great season. Steady with good inquiry at present. 9 to 11 o'clock. Listings are infrequent in this area. Established sale rate range is from $119/ha ($48/acre) (mixed basalt and forest grazing country) to $345/ha ($140/acre) for good basalts. Market eyes are on the offering of Fairlight with good market interest.
Good rain. Close to Richmond - good demand. Slower market towards Croydon. 9 to 11 o'clock. Last sales were a mix of forest, and broken downs country at a range from $227/ha ($92/acre) improved to $276/ha to ($112/acre). Listings are infrequent in this area and local demand is strong. Market interest is on Strathpark at present.
Georgetown, Croydon and Normanton forests
Late season. Substantial recent rain in areas. Few listings. 7 to 9 o'clock. Lighter, sandier Croydon forest ranging from $41/ha ($16.50/acre) bare improved to $215/ha ($87/acre) bare improved for a mix of basalts, granites and frontage country in good condition.
Reliable rainfall area. Market interest in this area increases when southern areas are dry. Demand was strong prior to the recent sell off of cattle and the recent rain events. Demand in the eastern area may stay firm as a spill over of demand from the Burdekin Valley short supply.
Richmond/Julia Creek northern downs triangle
Initially dry, patchy recent rain has been of benefit. Golden triangle. Strong demand. 11 to 12 o'clock. $308/ha ($125/acre) to $326/ha ($132/acre) to a peak of $494/ha ($200/acre) bare. Reliable rainfall. Tightly held golden triangle type market area where market listings are rare. Sales are generally privately negotiated.
Downs south of the Hughenden/Cloncurry Tick line
Late season with patchy recent rain. Has been a low volume market area. 7 to 10 o’clock. $172/ha ($70/acre) to $308/ha ($125/acre) with a peak at $331/ha ($134/acre) bare improved
Has been a thinly traded market area. Stable pricing for some years now. Market has priced in the seasonal risk and soil type variations at a discount to the area north of the line since 2009. During the boom the market priced this area up near and equal to the country to the north of the line. However, the market rates rationalised quickly after the peak. Latest listings are Ardbrin and the Thornhill aggregation. There will be some good country come onto the market in the next month prior to the northern weaning muster. Expect some good sales activity for grassed country.
Initially very dry with good recent rain in north. Tightly held market area where market listings are infrequent. Local and investment grade interest in possible opportunities is strong. 9 to 12 o'clock.
Late and wet. Lack of property listings. 10 to 12 o'clock. Good quality red mineralised country breeds low cost sappy weaners. Broken black soils in the north and north east are complementary. Sales are generally privately negotiated. Local demand is high.
Late and patchy, Good channel flows. Lack of property listings. 7 to 10 o’clock. $38/ha ($15/acre) to $106/ha ($42/acre) bare improved. Overlooked market area, top of the salad bowl. Fatten a T-bone and chips on a gidyea burr.