PRIME LAND: Episode 1

The Land

The Land has today launched Prime Land where journalist Samantha Townsend and Ray White Rural agent George Southwell talk all things agricultural real estate.

Transcript

00:00 (upbeat music)

00:02 - G'day and welcome to the first installment of Prime Land.

00:08 I'm Sam Townsend from the land,

00:10 and I'm here with George Southwell of Ray White Rural.

00:13 And we're here to talk to you about all things real estate.

00:16 - We've got it all, what's hot, what's not,

00:18 prices per acre, succession planning,

00:20 and everything in between,

00:21 with a bit of the commodities and markets

00:23 thrown in there too, Sam.

00:25 - Now let's get into it.

00:26 (upbeat music)

00:28 - George, can you recap 2023 for us?

00:30 - Certainly, Sam.

00:31 Obviously commodity prices played a huge part

00:34 in what was going on.

00:35 Interest rates, a little bit as well.

00:38 Not the main driver though,

00:39 it was a bad weather prediction at the end of last year

00:42 that really knocked us around.

00:43 However, our price per hectare

00:46 hit an all time record high of $7,000 a hectare.

00:49 - Wow, that's incredible.

00:51 - It is incredible, and there was some big sales too, Sam,

00:53 which was really, really good to see.

00:54 We had Muldoon Downs, which was transacted by JLL.

00:57 Jeff Warren are leading the sale there.

00:59 Up at Inverell, that $80 million sale for 20,000 acres

01:03 went to Hancock Agriculture.

01:05 So that was awesome to see.

01:06 - Can you tell us about any other sales?

01:08 - Yeah, certainly.

01:09 Jemelong, the crown and the jewel down there

01:11 on the Hay Plains.

01:12 That $85 million sale was transacted by Danny Thomas

01:16 at Lord.

01:17 33,000 acres, a beautiful, beautiful property.

01:20 But it was interesting, Sam, to note

01:22 who bought that property.

01:23 - Who was it?

01:24 - Well, it went from Neville and Hans to Canadian Interests.

01:27 We had a Chinese-backed company also purchase

01:30 a big, big property, Gundaline.

01:33 Very famous.

01:34 It sold on the Murrumbidgee River down there

01:36 for $120 million.

01:37 And that foreign investment,

01:38 while it isn't the strongest form of interest

01:40 we're seeing at the moment,

01:41 it's starting to filter back in,

01:43 especially with China reopening up to Australian products.

01:47 - George, how's the sales kicking off for 2024?

01:49 - Look, it's a bit early, Sam.

01:50 I know you're eager.

01:51 - Oh, we're all eager to find out what's going on.

01:52 - Everyone's eager.

01:53 But look, the talk around the traps is

01:55 that agents are out there and they're talking

01:57 to a lot of people about making decisions

01:59 about selling in autumn.

02:00 - Yes.

02:01 - Obviously, we're seeing those commodity prices.

02:03 They're starting to affect people's confidence again

02:05 and get things going in the new year.

02:07 Interest rates on hold for a second Reserve Bank meeting

02:10 in a row.

02:11 I'd say we're in for a really, really busy autumn.

02:13 So be able to open up that land

02:15 and go to the property section

02:17 and there'll be plenty of purchases to be made.

02:19 - And obviously, we've seen some cracking rainfalls out,

02:21 especially in those parts like Mingen.

02:23 Is that playing a big factor on people

02:25 putting their places on the market?

02:27 - Look, rainfall always affects people in a positive way,

02:30 Sam.

02:30 The biggest, biggest effect though

02:32 is those commodities coming into it.

02:34 The banks are still lending, so that's good to see.

02:36 And tied in, all those three factors tied in

02:39 and the rainfall.

02:40 I mean, it's just beautiful at the moment.

02:42 It's green on the side of the road

02:43 and it's the middle of February.

02:45 - And who's buying?

02:46 - Look, who is buying?

02:47 Good question.

02:48 We're seeing a little bit of interest coming back in

02:50 from those foreign markets.

02:51 Obviously, China's opened up as well,

02:53 which is good for the Australian market,

02:54 but we can't ignore the locals either.

02:56 We saw Rob Southwell from Southwell Property.

02:59 - Oh, yes.

02:59 - Yeah, out there at Gunnedah.

03:00 So, he sold Kensal Green and Buran Park,

03:04 713 hectares, cotton property there

03:07 for 18 and a half million under the hammer.

03:09 The under bidders at that auction though

03:11 were people from outside the local area.

03:13 So, the biggest trend though that needs to be noted

03:16 is that it is corporate family farmers, as I call them,

03:19 second or third generation.

03:21 They're going through their succession planning

03:24 and that means that they're either expanding

03:26 or decreasing the size of their farm.

03:28 (upbeat music)

03:30 - Well, that's Crime Lounge for this week.

03:32 Thanks for that comprehensive wrap, George.

03:34 - No trouble, Sam.

03:36 - Until next time.

03:37 (upbeat music)

03:39 (beep)

03:43 - Just as nice to be in there, aren't I?

03:44 - Yeah, good, isn't it?

03:45 - How far was it to you?

03:46 - Only five hours, just down the road?

03:48 - Yeah, about eight hours, not too far.

03:50 - Not too far at all.

03:51 - I'll tell you what though,

03:51 in these jackets, it's pretty warm out here.

03:53 - It's a bit warm.

03:54 That Macquarie River, she's got a fresh in it, Sam.

03:57 I think I might take advantage of it and go and have a dip.

04:00 - I don't blame you.

04:01 (upbeat music)

04:04 (upbeat music)

04:07 (music)

04:09 you

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