Alex Scott and Staff Leon­gatha

Farm World News - - Farm World 2016 -

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.

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