High cattle prices feed into land sales
HIGH cattle prices and demand for land for agistment have driven almost $ 100 million in sales for agricultural properties in the Townsville region in the past year.
Colliers International Townsville provided the market information as cattle prices firm on demand from the live export trade and drought in- creases demand stock.
“The drought is one factor influencing demand,” Colliers International associate director Angelo Castorina said yesterday.
“That’s coupled with reasonably high prices for cattle which is keeping demand for properties buoyant as well.”
Mr Castorina said there was increasing demand for agistment and that was combining with some landowners taking properties off the agistment market. for feed for
“The inquiry rate for cattle grazing properties is always there; the problem is supply,” he said.
“There’s very little property available you can offer to people.”
Recent deals include Wambiana Station for $ 15.5 million and Slogan Downs Station for $ 10 million, both in the Charters Towers area.
Colliers has been involved in the pending sale of Runway Station, so named for its old World War II runway, near Reid River just west of Townsville.
The buyers from West Australia’s Kimberleys are looking to establish a live cattle export depot on the property to service the wider region.
In the year to June, total agricultural land sales in the Townsville region was about $ 98.5 million.
Mr Castorina said there had been very little movement in the sugar cane property market, partly because of low sugar prices.
“People are not out there investing in other farms while the sugar price is where it is,” Mr Castorina said.
Burdekin cane farm prices averaged about $ 3040/ ha, while Herbert cane farm averaged $ 1800-$ 200/ ha.
The average price for cattle fattening properties in the Townsville region is $ 42/ ha with coastal properties attracting higher prices.
According to Colliers, the agricultural market is characterised by tightly held assets and solid inquiry, and based on strong fundamentals.
Townsville port is Australia’s largest sugar export port and gaining on Darwin as the premier live cattle export hub.