Alex Scott and Staff Leongatha
The past 12 months in the rural market for South Gippsland as far as farm sales has been outstanding.
Andrew Newton of Alex Scott highlights that they have seen more farms sell in the last 6 months than in the previous few years.
Anrew Newton of Alex Scott highlights that he would not say that the current economic climate has anything to do with it, as the farm gate price for dairy farmers is still tough and their production costs are continually rising.
However, it has been 5 plus years of hard work, saving and paying off debts that has put some farmers in a position to expand.
Alex Scott Leongatha are finding that it is mainly dairy farmers that are expanding. A large portion of farmers both beef and dairy in the area are pushing retirement age, especially with the baby boomer era being upon us.
Over the past 12 months there have been a lot of discussions with clients about listing their properties now and capitalising on the current demand.
Prices for properties are reaching fair market values.
The days of properties selling high above their market value are over.
Whilst there is demand from capable buyers, sellers are being educated in the realisation that capable buyers are also well informed. The buyers are well versed on the values of land and infrastructure value.
Whilst they are prepared to pay a good price to secure the property in the location they are seeking out, they are also fortunate to have supply and choice.
Over the coming 12 months a good supply of rural land will be coming on the market.
It is getting increasingly more difficult for the next generation to get the funds to buy the family farm, so that will lead to a steady flow of supply.
Demand is always high in South Gippsland for properties that are priced realistically.
It is obviously dry now and in desperate need for rain and our farmers are doing it tough!
However, they are a resilient bunch! South Gippsland is one of the best farming districts in Australia and with good farming practices and some luck with the water falling out of the sky, hopefully the year to come will more productive for farmers in general.
Alex Scott and Staff, Leongatha can assist with all your rural property needs.
They are located at 45 Bair Street, Leongatha, phone 5662 0922.