Lower interest rates stimulate rural property sales

Tasmanian rural property sales are picking up after several years of stagnation.

"There's been a couple of well-known properties that have sold in recent times," auctioneer and agent Michael Warren said.

"That reflects a renewed confidence from larger players to be able to enter the agricultural scene."

 

As a director of Landmark Harcourts Tasmania, Mr Warren said falling interest rates had been a major factor in the turnaround.

He said improved confidence in agriculture and forestry also created a climate for land buyers and sellers to trade.

"It's really interesting, we've seen the market change quite dramatically over the last six to 12 months," he said.

"There's a lot more confidence in the buying public.

"So we've seen sales made to local, interstate and some overseas buyers; it's been a real mixture.

"Interest rates are a huge influence out there, and the banks are obviously keen to lend finance in the rural sector."

Mr Warren said better farm-gate prices for a range of crops and livestock had also played a part.

"Beef's a classic example of that, so there's some confidence returning to that sector.

"A classic case is some of these plantations properties that we've had up for sale.

"Most of them are being sold to farmers or people associated with farming who are then looking to clear those blocks and put them back into agricultural use.

"Some of that land has sat on the market for quite a while but now we're starting to see it move to people looking to that country for beef production or prime lamb production.

"Dairy run-off is a classic case, and I think as we see more of this land come onto the market, it will all move back into the agricultural sector."

Mr Warren said despite the property market activity, land values were yet to rise.

via abc.net.au