High commodity confidence, low interest rates and a good season so far are contributing to demand for rural properties in the South East, according to real estate agents.
Higher prices for beef and lamb and predicted demand for clean and green livestock were among the key drivers.
The region was considered good for agricultural pursuits because of its wide range of soil types, Mediterranean climate and underground water supplies.
Several properties across the region, including at Bray, near Robe, have been put up for auction this month.
Agents said property prices across the region had increased by as much as 30 per cent in the past three financial years.
SAL Real Estate Naracoorte sold a 556-hectare property at Cadgee, 15 kilometres north of Naracoorte, via auction on July 13. It sold for $2.28 million.
Strong interest pushed the selling price higher than expected.
SAL rural land salesman Cameron Grundy said a shortage of property to sell had led to pent-up demand.
Mr Grundy said the combination of historically low interest rates and strong commodity prices had consolidated interest from buyers, while bankers and accountants had been encouraging farmers to expand their operations.
He said the SE benefited from a strong underground water supply.
“When people from other regions choose not to run cattle on the back of extreme mains water prices, this confirms the SE has some unique environmental advantages,” he said.
A high level of interest is coming from those looking to run livestock or grow lucerne.
Elders SA/NT real estate manager Andy Edwards said the market in the South East was “very bullish”.
“It’s a good market to be selling in,” he said.
“There has been excellent local and interstate buyer interest. Only recently we had an outstanding auction result of two 400ha-plus properties at Bray selling beyond reserve after some animated bidding.”
Mr Edwards said export markets expanding and evolving free trade arrangements were also helping sentiment.
He said there was a prevailing low and seemingly stable interest rate environment, which provided a good environment where vendors and buyers should feel very comfortable.