2015 brought the beginning of the push for rural property demand, and the momentum has well and truly continued into 2016. The increase in the price of beef over the past 18 months has lifted the selling prices of grazing properties, and as a result the entire real estate market has been given a boost. According to ABC Rural, Land values on rural real estate are predicted to climb even higher, with several drivers behind the increase.
What’s causing the rise in rural property value?
With cattle prices being so low, international, domestic and corporate interest in the rural land for sale has swelled much higher than in 2013 and 2014 (ABC Rural). Much like the trends in 2015, cattle stations are being snapped up quickly as old farming families are re-emerging in force. Herron Todd White’s Tim Lane spoke recently in an interview that the countries rainfall so far this year has been greater than in previous years, creating international interest in the land for sale as well as increased local interest (You can listen to the full interview here).
How has the Rural Real Estate market been impacted?
In a recent article in Queensland Country Life, it is discussed that foreign and local investors alike have begun to regard Australian rural property as a long-term investment, which has impacted positively on the overall rural real estate market.. It has become a ‘sellers’ market’ due to the large number of farmers seeking bigger properties and stations, and workers looking for homes close to employment. Contrary to as would usually be expected, the increasing number of properties for sale has not forced sale prices to decrease. The high demand and interest of buyers around the globe for rural real estate in Australia has only pushed prices up, creating an ideal market for real estate agents and investors.
What do Rural Real Estate agents think?
Being viewed as a new beginning for the Australian property market, rural real estate agents are jumping for joy. The founder of Tanami Rural Property Sue Brosnan has said the company is very excited with the progress and future predicted for rural property and real estate. She says they hope to be the first choice of investors and sellers seeking real estate agents in Darwin and Katherine, as they’re the local agents with a local touch. We encourage growers and investors to take the plunge into rural property while the returns are so great.