There is a general feeling that the rural property market in South Australia will continue to enjoy strong interest, despite some areas feeling the full effects of the dry conditions.
Landmark Harcourts assessment of the current rural property market is bullish on the back of strong market sales and response particularly in the state's south-east where rainfall has been consistent.
This has been influenced by the lack of buying opportunities, meaning strong action and results for vendors in this region.
Elders Rural Real Estate said the South Australia rural property market price continued its upward path over the past year with the median price per hectare increasing by approximately 17 per cent compared with approximately 10% nationally.
The number of properties transacted in SA fell by about 12% compared with about 10% nationally.
Rural Bank 'Australian Farmland Values 2019' report shows annual average growth over the past 20 years has ranged from just over 6pc for the Yorke Peninsula, North, Hills and Fleurieu.
Growth for the same period is at 7.4% in the Upper, Mid and Lower South-East, Murraylands, Riverland and Mallee.
Rural Co Property said the selling season commenced with the sale of Ebenezer Downs, 757 hectares (1870 acres) located 16 kilometres west of Naracoorte.
The property presented well early in the season while there were few properties available for sale.
Interest came from far and wide with inspections being conducted with parties from New South Wales, Victoria and South Australia.
After many inspections, seven bidders registered at the sale at Naracoorte where the property was sold at auction for $7.8 million equating to $4168 per acre - a record for the Stewarts Range/Spence District.
This sale result along with other properties Ruralco Property has transacted in the mid south-east during 2019 indicate they are witnessing new market values with increases of up to 30 per cent in the past six to 12 months.
According to Ray White Rural SA director Geoff Schell, many of the properties coming on to the market are from those exiting agriculture because they do not have the next generation coming home to the family farm, or those who do not have the scale of operation for business efficiency, or do not want to or are unable to increase debt levels to invest further into farm expansion.
With the continuing dry across Australia, there is also very strong enquiry from within SA, and also NSW and the drier areas of Victoria for the higher rainfall areas of SA, particularly the south-east which has performed very well when many other areas have struggled.
Colliers International report that 2019 has seen value increases in nearly all segments of the South Australian rural market, both geographically and by sector.
The Colliers agribusiness team have been particularly active in the specialised agri sectors including intensive livestock, viticulture and horticulture, which has resulted in well in excess of $250 million worth of deals in the past 12 months.
Spence Dix & Co Rural reports that the south-east continues to perform on the back of an exceptional return year last year.
Unseasonal low summer rainfall tested lucerne pastures, but things have certainly caught up on the rainfall front since May.