Newspaper article The Chronicle (Toowoomba, Australia)

Rural Market Remains Subdued

Newspaper article The Chronicle (Toowoomba, Australia)

Rural Market Remains Subdued

Article excerpt

THE rural property market in south-east and western Queensland still remains subdue, according to independent property advisors Herron Todd White.

Herron Todd White rural valuer Stephen Cameron said tighter monetary lending and buyers confidence has continued to halt any recovery in this market sector.

aThe impacts of the December/January floods are also still being felt by those that suffered significant damage to their infrastructure on top of both stock and crop losses,a Mr Cameron said.

aHowever the medium-term benefits from record drought breaking rains is the recharge in sub catchment aquifers particularly within the Lockyer Valley.

aWater storage dams were at capacity at the beginning of the winter plantings and properties still have an excellent dry winter feed base, however frosts have reduced the nutrition value.

The limited follow up rain since March has put added pressure on many cereal crops, although the sporadic rainfalls over the past few weeks has been welcomed.a

Mr Cameron said generally the market throughout 2003 to early 2008 was primarily driven by cattle market.

Both large corporate agriculture companies and well established producers were seen to expand their portfolios where the a[approximately]mum and dad' entities soon followed suit, he said.

aHowever the market today is quite different.

aThere has been a distinct weakening in market sales and values have come back off the 2007/08 peaks.

aThe level of reduction varies from region to region dependant on the quality and market segment of those properties.

aWhilst good quality large scale and appropriate priced properties still have the potential to sell on sound values, the depth of the rural market property market in general has undoubtedly narrowed substantially.

aThe level of uncertainty on the national and international monetary markets at present hasn't done the market any favours and subsequently, continues to pose a risk for the supply of rural property to exceed demand in the foreseeable future.a

Agents are indicating there is generally a lack of buyer's confidence within the market and hence stalling any possible market recovery, Mr Cameron said. …

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