Riverina rural property in hot demand as appetite hits record levels

PROPERTY DEMAND: Real estate agent with Elders, Angus Macleod, has witnessed a run of fantastic prices for rural properties in this area.
PROPERTY DEMAND: Real estate agent with Elders, Angus Macleod, has witnessed a run of fantastic prices for rural properties in this area.

INVESTORS are flexing their monetary muscle and shelling out phenomenal amounts to secure rural properties.

The thriving success of cattle and prime lambs plus a lucrative crop harvest late last year has instilled confidence in the agricultural industry far and wide.

And while many investments, and businesses, were hit hard by the COVID-19 pandemic, rural property and commodities emerged as a shining light and performed well throughout 2020 and into 2021.

This is the message from Riverina rural real estate agent Angus Macleod of Elders.

Mr Macleod has seen intense interest in various holdings in this area.

He said if a current property, listed on the market around 10 days ago, was to be a guide there was buoyant interest across the board.

Mr Macleod, along with colleague Geoff McGilvray, is currently marketing a Mates Gully Road property called "Heatherly."

They have been inundated with calls and requests for inspections.

"We have had 40 inquiries in 10 days, and so far there has been 10 or eleven inspections," he said.

And this demand is typical of what many other holdings are attracting too.

Mr Macleod said interest was from current agricultural operators who were looking to expand their holdings.

Plus there was city inquiry, from those looking to make a "tree change" or move to a regional area.

He said "Heatherly" was located about 35 kilometres from Wagga and that was attractive to potential buyers too.

The 207 ha (512 ac) property will be sold at auction on March 31.

"Interest will be strong and things are certainly shaping up based on the inquiry we have had," he said.

Using previous property sales in the area as a gauge indicates that buyers have been paying around $4500 to $5000 an acre but there have been reports of values higher than this too.

Late last year a Gregadoo property called "Gregadel" and spanning some 2300 acres made around $11 million.

"Top End" at Collingullie sold under the hammer late last year for $2.55 million. "It was 469 acres (189.8ha) of good arable country," Mr Macleod said.

Meanwhile, a 131.80-hectare property on the Tumut River, marketed by Webster Nolan's David Nolan, commanded $4.55 million.

Mr Nolan said the sale was nothing short of a stellar result with the per acre price equating to around $14,000.

The $14,000 an acre could be considered a new benchmark for almost any district.