Lalagooli, sold for $4 million, covers 735 hectares, divided into crop cultivation and grazing. Supplied
More than $25 million of rural property has been sold in northern NSW in the past few weeks showing further increase in land values fuelled by low interest rates and confidence in the sector.
Andrew Street of Landmark Harcourts Gunnedah recently sold more than $7.9 million of property, including Lalagooli and Lalagooli West in Gunnedah.
“The values are certainly on the rise and underpinning that is definitely lower interest rates and confidence in the livestock sector,” Mr. Street said.
Lalagooli sold for $4 million, negotiated after auction. The property covers 735 hectares, with the farm divided into 16 well-fenced paddocks, 485 hectares under cultivation and 250 hectares of grazing.
Lalagooli includes 250 hectares dedicated for grazing. Supplied
“I sold the neighbouring property in 2015 for about $5000 per hectare and the latest deal shows that has increased to $5440 per hectare.
“This was the first time the property had been on the market in over 70 years” Mr. Street said.
Lalagooli West, a 138.4-hectare prime cropping property sold for $1 million under the hammer.
The deals in the Gunnedah area come off the back of Chinese company Union Agriculture snapping up the Minnamurra Pastoral Company’s Glenrowan Aggregation near Gunnedah, NSW, for about $38 million. The company also bought the highly developed irrigated and dryland farming property Leandah/Wyangan aggregation, also near Gunnedah, for $11.4 million.
Mr. Street said he expected further improvement in values.
“These are the highest prices I have ever seen but I think there is still more value to be had especially with all the interest around.”
Further north, Landmark Harcourts Narrabri Moree’s Paul and James Thomas have also just sold Coomooma, a 1169-hectare cropping property at Gurley. They reported that the property attracted good inquiry, with a crowd of mainly local farmers on hand to see the property sell under the hammer for $6.95 million at the Landmark branch in Moree.
In Tamworth there have also been strong sales.
Phillip Ennis, of Landmark Harcourts Tamworth, sold two grazing and livestock properties for full asking prices with a total sale price of close to $10 million.
The big deal was the sale of Mount View Station, which the vendors bought for less than $5 million three years ago and have just sold for $8.5 million.
“While they did buy it for a lot less they have spent a lot on improvements,” Mr. Ennis said, “What they have done with the place is like taking what was a championship team to the premier league,” he said.
Mr. Ennis said the 2600-hectare property, used to produce fat lambs, probably still had room for more growth.
Development manager for Landmark Harcourts NSW Stewart Gordon said for those considering selling their property soon, now was an opportune time. “Demand is high and there are fewer properties on the market,” he said.
Findings from the Landmark Harcourts Benchmark Report, produced in conjunction with Core Logic, show that there were 11,971 agricultural properties in NSW sold over the 12 months to November 2016, 8.9 per cent fewer than the previous corresponding period.
SOURCE: The Australian Financial Review
POSTED: May 7, 2017
AUTHOR: Matthew Cranston
@Jurds Real Estate – Cessnock and Hunter Valley Wine Country Property Experts – the place to buy, sell and lease property in Cessnock and the Hunter Region.