Pastoral Market Update

The pastoral sector has continued to forge ahead as demand grows and the range of buyers being introduced to pastoral farming options increases.

The past 12 months have seen lower levels of pastoral property on the market, hence lower sales volumes. This makes assessing value growth harder, but stations, finishing blocks, grazing properties and forestry blocks that have come to the market have seen strong buyer interest and commitment.

Properties offering superior scale are receiving substantial enquiry, however the major difference between now, and this time last year, is that interest for these large landholdings is being drawn from a far wider and more diverse buyer pool.

Historically, when large sheep and beef stations are introduced to the market, demand would have been from established farming entities with the ability to extend and add to an existing large-scale property or portfolio of pastoral properties.

Now, pastoral properties are seeing competition from other buyer groups, including those who have limited experience or ownership in the pastoral sector.

Syndicate buyers, equity partnerships, and corporate investors are among those entering the market, with land now being considered an attractive investment opportunity, compared to those options that lack “touch and feel”, or are deemed riskier.

These new buyer groups are a positive influence in the pastoral market, and often provide the financial means for those passionate and experienced in farming, to have either part-ownership, or the opportunity to manage a large station relatively autonomously.

There remains ongoing interest in forestry and this category is driving a large part of the demand being experienced in the pastoral sector.

The number of buyers, the range of different buyer groups in the market and the strength of some entities now looking for investment opportunity in the sector, farm values are continuing to grow.

The lack of stock currently available continues to not only increase the level of demand as more buyers enter the market, but also drives the final purchase price as those properties that do come to market, are reaping the reward of a far greater buyer pool.

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