SA's rural property drought

This supply-demand imbalance, combined with historically low interest rates and buoyant commodity prices, has meant a long list of properties have gone under the hammer this spring.

But the abrupt end to the season has not dented confidence with buyers taking a medium to long-term approach.

Landmark Harcourts state real estate manager Simon McIntyre admits the deteriorating season has taken "some of the edge" off the rural property market but says demand is far exceeding supply this season.

"When seasonal conditions are great, along with commodity prices, it clearly gives people that extra confidence but recent seasonal dryness in the cropping regions and the state's South East has seen some minor damage to confidence, but we are still seeing strong enquiry with less options on the market within a low interest rate environment," he said.

"It (dry conditions) hasn't tipped the property market on its side, if anything the opposite, it has made prospective buyers have a second look.

"I've said on many occasions that the three stars of the property market are the economy, commodity prices and seasonal conditions but at the end of the day it comes down to supply and demand."

Mr McIntyre said there had been unsatisfied demand among Yorke Peninsula and Mid North croppers.

Recent rain in many parts of the pastoral zone last week will consolidate demand for sheep and cattle stations, with limited supply available to the market.

"Those taking a medium and long-term view can see the lowest numbers of livestock in Australia in many years, and the free trade agreements are creating some noticeable opportunities. Pastoral country is a factory to produce large numbers," Mr McIntyre said.

Enquiry for livestock properties in the SE is also strong despite drier-than-average seasonal conditions.

Ray White Clare Valley joint principal Geoff Schell said they had achieved outstanding results on the three properties they had taken to auction this spring, with all selling under the hammer with six or seven registered bidders at each auction.

He said farming in the Mid North region was in a consolidation phase which had meant less properties were listed during spring.