Property market springs into action

Sustained low interest rates and the strong long-term outlook for agriculture are fuelling interest from within SA and further afield.

Confidence is also being driven by buoyant sheep and cattle prices, and most of the state's cropping areas being on track for at least average yields.

Elders SA/NT rural real estate sales executive Phil Keen said there was greater confidence than this time last year but buyers were still "measured" in their approach.

"We have had some consistency about yields with a run of seasons now. There is also a feeling among our farming clients there is a lot more upside feeding China and that confidence is coming to the fore."

In mid September, Wirrawilla, near Jamestown, a 404-hectare property, was sold at auction for $2.55 million.

Mr Keen said it was an "outstanding" result to have 10 registered bidders, driven by the property's location in a tightly held, reliable area.

He said the strongest interest was still in cropping properties and, with improved farming practices including no-till, buyers were more keen on areas once considered marginal.

This included Eyre Peninsula, which Mr Keen said was an "under-rated production area", and areas outside Goyders Line such as Hawker and Quorn which were enjoying a tremendous season.

"Some of the drier, more marginal country, are becoming more sought-after. Even after a few dry years they are still getting good crops in the dry springs," he said.

Buoyant livestock prices and technology such as automated watering points were also making running pastoral properties more attractive to many livestock producers.

The 1000-square kilometre Mount Freeling Station via Lyndhurst in the northern tip of the Flinders Ranges - a property for sale by expressions of interest closing on October 23 - had already generated keen interest

Mr Keen said they also had some "choice properties" throughout the South East, providing an opportunity for those serious about getting into quality rural production.

Landmark Harcourts real estate sales specialist Simon McIntyre said the spring selling season had begun well in the Upper SE.

Gumlea, a 288ha property near Mundulla, was sold for $800,000 at auction, and 273ha Bart's Pastoral, seven kilometres north-west of Bordertown which included a 328 megalitre water licence, was sold in excess of $1m after negotiations at the auction.

He said there was a "good level of enquiry" for rural land across the board but it was too early to see how this would eventuate into sales, with many expressions of interest yet to close and auctions still to come.

Cropping land, particularly in reliable areas, had been in demand for some time but with strong livestock prices there was renewed interest in properties suitable for sheep and cattle.

An example was Oakvale Station, east of Burra, being marketed by expressions of interest.

The 72,700ha station has already attracted solid inquiry ahead of the closing date on October 11.

Despite the strong enquiry for cropping properties, there were fewer opportunities at this stage but Mr McIntyre expected this to change in the next six weeks.