NORTHERN cattle station values appear to again be on the increase on the back of improved seasons, high cattle prices, and record low interest rates.
Townsville-based Herron Todd White valuer Roger Hill said there were plenty of indications the property market had been on an upswing during 2016 based on a spate of transactions across the north in recent months.
“On the property cycle clock we’re probably looking at the market being in the seven to nine o’clock range suggesting the market is increasing and has in some cases recovered,” Mr Hill said.
“What we have seen is an expected 20 to 25 sales, but in a year where there was a lag effect caused by the good winter rain. Most of the sales activity is usually in March to June period. This year a lot of sales have occurred from September through to November.”
Notable sale included:
- Nuemayer Valley, a 143,000 hectare Gulf property sold with 15,560 cattle for $40 millon.
- Maryvale, a 67,200ha property at Charters Towers.
- Esmeralda, a 399,000ha property with cattle at Croydon.
Mr Hill said values varied greatly depending on the productivity of the country, location, cost of management and level of improvements.
He said more productive country that would background and seasonally fatten cattle was valued in the $1900 to $2700/beast area range.
However, prices were very much governed by access, land types, water, fencing, rainfall reliability, and degree of land development.
Country that was limited to backgrounding was valued at $1300 to $2000/beast area while well watered breeding country came in at $800-$1500/beast area.
Some breeder country had sold for $400-$800/beast area, but the values reflected the harder nature of the country and relative state of development.
“They may appear to be wide ranges but that is nature of North Queensland,” Mr Hill said.
Mr Hill said a reasonable, stand-alone level grazing enterprise was valued in the $2.4 to $4.5m range. Below that price level, an off-farm income was often required to support the enterprise.
He said the bulk of the market was in the $4.5m to $13m range where there were the operating efficiencies and profit opportunities associated with running 2500 to 9000 cattle.
Above the $13m-plus was the start of “investment grade” operations capable of running 10,000 to 12,000 AE.
Mr Hill said a notable trend in the market was an increase in sales as a result of families implementing succession plans. There had also been a trend to sub-lease pastoral holdings, he said.
