Sta­tion val­ues hurt by drought

The Cairns Post - - LIFESTYLE - AN­DREA FALVO

SALES of North Queens­land cat­tle prop­er­ties and sta­tions have been af­fected by drought con­di­tions through­out much of the re­gion, ac­cord­ing to a new re­port.

The lat­est Cairn­sWatch re­port by re­search direc­tor Rick Carr of Her­ron Todd White Cairns showed that, while sales rates for North­ern Queens­land cat­tle prop­er­ties/ sta­tions (more than 2500ha) had been steadily in­creas­ing since 2009, prices had been af­fected by drought.

He said prices had only re­ally started to move over the last two years.

“In ad­di­tion, graz­ing prop­erty val­ues for 2017 have been in­flated by a sales mix skewed to­wards good coun­try and a lack of sales of se­condary type sta­tions,” he said.

“The de­gree of prop­erty mar­ket value in­crease for 2017 re­flected by our anal­y­sis is over­stat­ing the true rate of growth.

“If there were a true mix of land sale types, the trend for 2017 would still be show­ing an in­crease in val­ues, but by a much lesser amount.”

Roger Hill, Townsville based agribusi­ness spe­cial­ist and direc­tor of Her­ron Todd White Townsville, said de­mand was now heat­ing up for forest breed­ing coun­try in ar­eas such as in the south to Mount Gar­net, Ei­nasleigh and Ge­orge­town in the north.

“There is a short­age of for- est breed­ing coun­try on the mar­ket and there is a mar­ket dis­rupter in the room in the form of the Depart­ment of Defence,” he said.

“As this year pro­gresses, the prop­erty clock for this re­gion of North Queens­land is likely to rise. De­pend­ing on how the defence ne­go­ti­a­tions play out, this mar­ket may see record val­ues later in the year.”

Mr Hill said there was a pos­si­bil­ity of ven­dors re-en­ter­ing the mar­ket as buy­ers with sig­nif­i­cantly en­hanced cash and re­duced debt to ac­quire re­place­ment cat­tle sta­tions for the ones that they may have just sold to Defence.

“It will be in­ter­est­ing to see if any of the deals break the springs of the prop­erty clock,” he said.

“There may be some over­flow of de­mand in neigh­bour­ing mar­ket ar­eas.

“These may in­clude the Desert Up­lands and the Hugh­en­den basalts and the Ge­orge­town, Ei­nasleigh and Mount Gar­net ar­eas.”

IT WILL BE IN­TER­EST­ING TO SEE IF ANY OF THE DEALS BREAK THE SPRINGS OF THE PROP­ERTY CLOCK ROGER HILL

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