Ray White Rural’s analysis of the first quarter of 2019 shows despite vendors being cautious about listing during dry times, discerning buyers are out in abundance.
Domestic buyer opportunism is being buoyed by rising commodity prices, a low Australian dollar, and restrictions on foreign buyers, despite fewer properties being marketed for sale.
Ray White Rural chief executive Stephen Nell said rural properties have been transacting well in 2019, despite the drought which routinely deters vendors from selling.
“Of the 406 auctions conducted in rural areas in NSW from January to April, 30 per cent did not proceed to auction day. A third of those sold prior to auction and the vast majority were repositioned as a private treaty campaigns which is a property for sale with a price,” Mr Nell said.
“Another 40 per cent of those properties sold under the hammer. These are all indications of healthy sales success rates in what is often reported as a dampened rural and farmland market.
“Because it’s dry, owners can be reluctant to take properties to market as they want to present the property when it’s looking at its best.
“So we’re naturally seeing lower volumes of listings on the market compared to the first quarter last year. This says more about vendor caution than buyer numbers.
“Buyers are in relatively good health with crowd sizes at auction averaging 35 people, and registered bidder figures stable from last year,” he said.
In the New England where the prolonged dry conditions of the last few years have been a shock to many 855.6 hectares at Oban View in Guyra sold for $5.2M last month.
In the Central West, Kenda Park on 1000 acres sold for $7.1M through Ray White Emms Mooney in March. Kara at Gooloogong sold for $3.4M in the same month after attracting more than 200 enquiries and six registered bidders.
Pat Bird, director at Emms Mooney, said structured marketing campaigns were crucial to success in dryer times.
“It may be dry but quality properties are still selling. Achieving strong enquiry rates, strong inspection rates, large numbers of bidders and robust results is a matter of attracting the right eyeballs to the property,” Mr Bird said.
“The key is in the marketing and presentation of these properties. Professional photography and videography will present a rural property at its best, even when it’s dry, and can demonstrate that a property performs in both good and dry times. Behavioural targeting is crucial to today’s campaign through traditional, digital and social media networks, ” he said.
Mr Bird said Ray White Emms Mooney had particularly noteworthy sales coming up; a mixed-farming land holding on 3992 hectares in Caragabal, Warrakimbo on the market for the first time once 1921 with the tender closing next Wednesday and Macquarie at O’Connell near Bathurst on 1150 acres.
Macquarie has had only three owners in 200 years and was the first property built in the Central West.