SA property market: Dry to slow sales surge

Sales kicked off last week with a successful auction at Burra conducted by Elders with Bayfield (168.2 hectares) and McDonalds (126ha) selling for $2.2m. It was bought by the Jaeschke family, Clare.

Two pastoral properties are among the major offerings, with both creating Australia-wide interest.

Moralana Station via Hawker, covers 62,131 hectare and is being offered for sale, walk-in walk-out, including about 3900 Merino sheep and 388 cattle on October 24, while 52,000ha Canegrass Station via Morgan, which has been marketed in recent weeks is scheduled to go under the hammer on Friday, October 4.

It has received about 75 enquiries.

A blue ribbon Upper South East aggregation of 5852ha in the Colebatch area, Yalanda, comprising five grazing properties is of the scale which has not been seen for sale in many years. It is being marketed by expressions of interest.

Another parcel has come up on the Upper Eyre Peninsula with Emu Rocks and Country Life, near Cunyarie, likely to appeal to those seeking large scale broad acre cropping, totalling 4344ha.

Elders rural real estate manager SA-NT Phil Keen is "optimistic" about the selling season despite many farmers feeling the seasonal pinch.

"Commodity prices have been sufficient for a lot of farmers to have paid down debt so despite the seasonal variability (across the state) they are looking to the long-term," he said.

"Younger farmers are seeing a good future for themselves and their families on the farm and we are seeing a growing number of females entering agribusiness and farming and being actively involved in the farming business."

Mr Keen says the Mid and Lower South East will continue to be keenly sought for its reliable rainfall but acknowledged some areas which had seen big rises in the past couple of years may be nearing the price ceiling.

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"In some areas we are getting close to where the majority of buyers would see it being the maximum price to make the figures work," he said.

"Having said that, if everyone used valuations the market would never move - valuations only look back at history not the future and if there are two, three or four of more buyers in a tightly held area that want it that may not apply.

"In some areas where not much has transacted a lot of farmers would be shocked that land that was $2500 to $3500 (an acre), 12 to 18 months ago could be $3500 to $4000 an acre."

Elders has 5 per cent more listings than the same time last year but Mr Keen expects the market to remain tight into 2020.

"We currently have corporate and larger family operators that are seeking larger scale aggregations," Mr Keen said.

"They have the funds in place and the will to invest."

Ray White Rural SA principal Geoff Schell says property prices have "found new levels in the last two years" with strong commodity prices and low interest rates but does not expect too many more records to be broken this spring.

"We have seen gains of 20pc to 25pc in the last two years for a lot of mixed farming and cropping and up to 40pc to 50pc increases in high rainfall grazing so I can't see it surging ahead," he said.

"We are seeing the season go south and the bigger picture view is there are a few international trade issues which might hold values."

Ray White Rural SA and Clare Valley has listed nine properties for auction in October in the Lower and Mid North which Mr Schell is hopeful of selling udner the hammer.

Mr Schell says the higher rainfall, more reliable properties have received the greatest enquiry throughout the marketing programs with 712.59ha, Pine Drive at Farrell Flat receiving strong enquiry from both local farming businesses and outside interests.

Landmark Harcourts SA rural real estate manager Simon McIntyre says there is a "two speed" real estate market with the high rainfall areas being most keenly sought, while the northern market has slowed due to the challenging season.

"The fundamentals of agriculture are strong but the part that is letting it down is rain, yet the odd part is we have seen good interest for a couple of places around Broken Hill, (NSW)," he said.

"A decent rain in the state's north will see an uplift in buyer sentiment."

Mr McIntyre says Moralana Station, which the owner has taken to the "next level" since purchasing it in 2010 from the University of Adelaide, is one of their standout listings with improvements including a fully refurbished shearing shed and shearers' quarters.

"It had rain in June and has a good coverage of bush so the livestock are in forward store condition," he said.

"The property is a standout in this region and it has 17 bores so it is well watered by anyone's standards."

Mr McIntyre has also seen strong interest in 782ha Bark Hut at Cassini on Kangaroo Island - a significant size parcel for KI and he foresees the market continuing to be strong for tightly-held Yorke Peninsula cropping country where they had a couple of listings.