Now that El Niño has been officially confirmed, the harvesting of a smaller winter crop is underway in some regions, and livestock prices have continued to drift lower under soaring supply. What implications will this have on the values of rural properties?
Jake Williams, an experienced professional with an extensive background in the real estate and farming sectors in central western NSW, said it is a case-by-case proposition for every rural property. Jake, who this month, launched two brand new offices, Raine & Horne Rural Quirindi and Raine & Horne Rural Murrurundi, said: “We tend to focus buyers’ attention on the property’s positives. We have a few listings coming up, and they have hit the market when things are looking very dry.
“Farmers are trying to save grass and are flooding the market with cattle and sheep.
“But the rural properties in the Quirindi and Murrurundi districts, boast consistent long-term rainfall, fertile soils, and are well-established.
“This combination presents an excellent opportunity for the next generation of owners to step in and make a good living.”
According to Jake, there is already evidence buyers are seeking the long-term benefit of owning a rural property in the vicinity of Quirindi and Murrurundi. “A recent sale of a 1500-acre property sold under the hammer for significantly above market expectations.
“The buyer recognised it as an opportunity to secure an excellent property to help expand their current operations. Some buyers are prepared to pay over because they have an eye on the future.”
The dry weather also impacts rural markets around Casino in the Northern Rivers, according to Kate Morgan, Co-Principal of Raine & Horne Rural Casino. “The dry weather is affecting buyer numbers, and in our area, we would usually expect to see storms start to build in November and December.
“The cattle market is a bit bleak, and the skies are blue, so we are just focusing on each of the individual property’s positives,” Kate said.
“We focus on what the property has achieved historically and know it will achieve these financial results again once the season turns around.
“We talk about the cattle it’s run previously, the job it has done on those cattle, or if it’s farming country, we look at the crops it has produced, and the yields of those crops.
“We are also fortunate in this area that owning a farm here doesn’t mean you’re isolated. Most properties are not far from the town of Casino, the sale yards once they open again, and the meat works for consignment of cattle. The beaches such as Byron Bay, Evans Head and Lennox Head aren’t far either.”
Kate said buyers of rural properties in Casino range from those new to agriculture to farmers seeking to expand. “The more productive and fertile farms are obviously worth a lot more per acre, but the area has so much else to offer as well and it's not always the farming and grazing side that entices people. “We also have a large quantity of lifestyle blocks that suit some people much better.”
Travis Wentriro, NSW Network Manager, Raine & Horne Group summed up, “Despite the challenges posed by weather conditions affecting some regions and fluctuating livestock markets, rural properties in areas such as Quirindi, Murrurundi, and Casino will continue to attract attention.
“Experienced professionals such as Raine & Horne Rural emphasise the long-term benefits of owning properties with consistent rainfall, fertile soils, and established infrastructure.
“Buyers will continue to invest in these properties, recognising them as opportunities for future success, even in the face of dry weather."
If you’re considering listing a rural property, contact your local Raine & Horne Rural estate agent today.