A look at Victoria's rural real estate market in Spring 2020
When you're looking to buy a farm, it can be easy to get bogged down in the details - what sort of property you're looking for, how far you're willing to live from the city, whether you want a pool - and forget about the bigger picture. It's important for anyone involved in rural real estate to focus on the broader trends of the market, which is why GoRegional has joined forces with two of the most experienced real estate agents in regional Victoria to bring you a profile of the Victorian market as it stands.
Anthony Mcdonald of Charles Stewart
South West Victoria is experiencing a wonderful spring following a drier than average winter, and most farmers are reporting that's just how they like it. Most areas have been receiving 10-20 mm of rain each week since late August, which perfect for pastures and crops when coupled with the increasing spring sunshine. Silage season is just beginning, with hay cutting to follow, and most farmers are expecting huge tonnages of fodder. Winter cereals and oilseed crops are also expected to yield well above average harvests.
Demand for rural property continues to be extremely strong, with only minor hiccups due to the Covid-19 pandemic. The demand for good quality cropping and mixed farming country has not abated, and with only a slow trickle of properties coming to the market, demand continues to outstrip supply, and the value of this category continues to climb.
With farm gate milk prices returning to respectable levels, the demand for dairy farms and dairy run-off blocks has also improved. With many former dairy farms no longer milking cows and instead running other forms of livestock, the dairy industry has undergone a supply and demand correction and now seems to be finding its feet. Dairy farmers are now competing with red meat producers for the best high rainfall country. The value of southern Victoria’s high quality dairy or grazing land has also increased, but not to the same degree as the mixed farming country a little further north.
Lifestyle rural property, which can range up to 100 hectares in size and between $1 and 2 million in price, have never been in such high demand. The Covid-19 pandemic has certainly contributed to this demand; with many Melbourne based buyers looking for more space and a quieter lifestyle. However, it is not only Melbourne that is creating this demand; many people in regional Victoria are also keen to buy rural property. In particular, large regional centres - Warrnambool, Geelong and surrounding areas including the surf coast area - are the source of much interest from people seeking attractive rural properties.
Author: Anthony Mcdonald is the Director of Charles Stewart & Co P/L. He can be reached by phone at 0418 593 597, or by email at firstname.lastname@example.org.
Peter Bellingham of Stockdale & Leggo
Demand in the area of South East Victoria is strong, especially with limited properties coming onto the market.
Lifestyle properties are very popular with people looking to escape Melbourne post COVID-19, but larger rural holdings are also in demand from both investors looking to add to their property portfolios and farmers from outside areas looking to diversify.
We are coming out of a wet winter and by all accounts the forecast is for a wet spring, which will set the scene for a big hay & silage season. With the dairy job and beef market both strong, I don’t believe we will see any downturn in rural property prices anytime soon.
Author: Peter Bellingham is the Director and Branch Manager of Stockdale & Leggo Coast to Country. He can be reached by phone at 0439 178 653, or by email at email@example.com.