Station values hurt by drought
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