Property Update
Wednesday, October 15, 2008
Market Trends - A Spring selling season faced with continuing dry conditions and a fragile economic outlook, coupled with an influx of farms on to the market, appears to be influencing buyer interest in rural property.
The traditional Spring selling season have seen a large selection of property become available with many Vendors seeking to market their property in early Spring more than later. Therefore there has been significant listings of all type of rural property starting in late August and into September.
Although enquiry is definitely at a quieter level than previous years, major rural property buyers are not as sensitive to the weakening Global credit situation which has therefore seen some good sale results being achieved. However poor September and October rainfall has certainly started to dent buyer confidence and as the selling season has continued enquiry has been generally effected.
It is interesting to note certain areas of Victoria, for example pockets of the Western District, have had a very different season to Northern Victoria and consequently enquiry and sale results are significantly better in those Districts. The focus remains on high rainfall cropping country and the Western District continues to be in good demand for its versatility and reliability.
Cattle Country-Grazing - Large holdings that were well positioned and could demonstrate an ability to maintain a carrying capacity and a reliable water supply continued to be sought after. Significant breeding and finishing properties remain in short supply with beef properties throughout Gippsland and also cereal and grazing country in the Western District, continue to create levels of interest when they become available for sale.
Rural Lifestyle - Lifestyle holdings within an hour and a half radius of Melbourne have also been effected by continuing dry conditions both in the supply of quality property and the enquiry level. As always quality properties which are well presented and priced accordingly create sound interest even though the enquiry level during the latter part of 2008 has decreased compared with other years. To a certain degree the rural lifestyle market in recent years has been underpinned by the bouyancy of the Melbourne residential market and as Melbourne faces a price adjustment it appears that lifestyle holdings are also finding a price correction is being experienced.
Dairying Property - there was interest in this sector from local and New Zealand buyers. Large properties were sought after and of course access to water a primary question. Concern is held in the Dairying Industry with regard to the low level of irrigation storages which supply the Goulburn Valley and the Murray irrigation areas. However there is long term optimism and demand is strong.
Vineyards - Enquiry for Vineyard property as the year has gone on has become stronger most probably due to the reserection of the Vineyard Industry after a time of oversupply, frost and poor seasons. A positive increase in enquiry is expected to continue as the oversupply of stocks from previous years disapates and demand for fruit increases.
Outlook - There is no doubt that the drought conditions which continue to prevail in most of rural Victoria will have a detrimental effect on the availablity of property as Vendors may well decide to wait for an Autumn break before contemplating listing their property. However there continues to be a sound selection of all types of rural property for sale and the prudent purchaser has an opportunity to buy a quality holding in the knowledge that demand for all types of rural property will again become strong as soon as economic conditions settle and properties receive adequate rains.
- Pat Rice & Hawkins