Revealed: Best Performing Regions For Cattle Stations For Sale

Analysis Looks Beyond Just Median Price Growth

What’s the best livestock region in Australia? Elders has looked beyond just median price growth to come up with a more educated answer, based on a criteria which includes: two double-digit quarters of growth in median price per hectare in 2021; a rolling one-year median price per hectare growth rate of over three per cent per quarter; liquidity of more than 10 transactions per quarter; and low variance in median growth over the past three years - ranked according to quarterly compound average growth rate for 2021.

5. Central Queensland

Central Queensland comprises the major rural centres of Emerald, Gayndah, Moranbah, Rockhampton and Taroom – where beef cattle is the major livestock enterprise in the region.

The region recorded an average rolling one-year median price per hectare growth rate of seven percent per quarter in 2021.

Above: A 163-acre cattle station for sale at 203 Mullins Road, Beatrice in the northern part of Queensland

Virgil Kenny, of Elders Real Estate, Rockhampton, says a surge in cattle prices combined with low interest rates and improved seasonal conditions has led to extremely high demand for grazing properties in the region, home to several large family farms which are quick to purchase neighbouring properties when the opportunity comes up.

“Much of the region has been developed over the years, with improved pastures and legumes offering vigorous growth potential in response to rainfall.

“Buyers in the region are looking into land purchases as being more secure and having greater returns than money in the bank, they see land as having a better rate of return in the long run,” he says.

Click on the following link to check out cattle stations for sale Queensland.

4. Southern QLD

Beef cattle is the major livestock enterprise in the region encompassing Bundaberg, Dalby, Gympie, Kingaroy, Toowoomba and Warwick.

The region recorded an average rolling one-year median price per hectare growth rate of 7.4 per cent per quarter in 2021.

Above: 'Sobbe Downs', a 490-acre cattle station for sale on the southern side of the Darling Downs

Trevor Leishman, of Elders Real Estate, Toowoomba, notes that South Queensland is a region with proximity to several desirable rural centres as well as the city of Brisbane.

“There’s a larger population compared to other grazing regions around the country,” he says.

“These factors, when combined with favourable commodity prices and low interest rates, create a scenario where there’s multiple types of buyers for a listing. As a result, demand remains very high compared to supply, pushing prices higher.

“While local graziers do compete for neighbouring properties, outside buyers seeking a multi-title property as both a future subdivision opportunity and a reliable farm, make up a large percentage of the market.”

Click on the following link to check out cattle stations for sale Queensland.

3. South West Western Australia

Comprising the major rural centres of Boyup Brook, Bunbury, Donnybrook, Harvey, Manjimup and Margaret River, South-West WA is a mixed livestock region with beef, dairy, sheep and wool.

The region recorded an average rolling one-year median price per hectare growth of 8.1 per cent a quarter in 2021.

Above: 28.9-hectare cattle grazing property for sale at 200 Mount Richard Road, Nanarup

Simon Cheetham, State Manager Real Estate, WA, says following a number of years of stable prices and limited growth, farmland values in the south-west have definitely seen significant uplift in the past 24 months.

“This growth has in large part been aided by strong cattle prices, low interest rates and only a limited number of properties coming onto the market,” he says.

“For a period, large areas of ex-Blue Gum plantations were offered to the market, with many of these having been purchased by farmers and reverted to productive grazing land. However, far fewer ex-plantation properties are coming onto the market today.

“Horticulture, viticulture, lifestyle and forestry also play an important role in the south-west property market, with demand from these buyers also strengthening in the past 24 months.

“Historically, land in the south-west has sold at a large premium to most copping and mixed farming areas of WA, however this gap as a percentage has narrowed whilst land values in many of those areas have grown at an even faster rate.”

Click on the following link to check out cattle stations for sale Western Australia.

2. South East South Australia

A mixed livestock region with beef, dairy, sheep and wool, South East SA draws in the major rural centres of Kingston, Naracoorte, Millicent, Mount Gambier and Robe.

The region recorded an average one-year median price per hectare growth of 8.4 per cent a quarter in 2021.

Above: 'Enderley', a 3,346-acre cattle station for sale at Port Davis, approximately 10km south-west of Port Pirie

“The south-east region enjoys proximity to several markets with infrastructure creating a seamless link to South Australian ports and processing facilities but also quick access to Victorian markets with links to Portland,” Grant Schubert, of Elders Real Estate, South-East South Australia, says.

“Access to water is a key consideration in the region, adding reliability and a scenario whereby intensive farming has grown and will likely continue to grow, offering further support for land prices.

“In 2021 obviously red meat prices increased confidence in the rural property market, however, the trend in rising confidence extends beyond the recent peaks. Evidence of beef prices holding firm in 2022 highlights strong underlying demand for the product.

“We expect demand for listed properties to remain high, but the level of strategic decision making is something that’s increased. Buyers are putting more consideration into ticking off things like balanced soil type and property presentation. There’s certainly potential for further growth in land prices, especially when viewing the whole picture.”

Click on the following link to check out cattle stations for sale South Australia.

1. North East Victoria

Including the major rural centres of Alexandra, Benalla, Mansfield, Wangaratta and Wodonga, beef cattle is the major livestock enterprise of the region followed by sheep, dairy and wool.

The region recorded an average rolling one-year median price per hectare growth of 10.3 per cent a quarter in 2021.

Above: A 562.41-acre livestock property for sale at 619 Deans Road, Meredith in the Geelong-Ballarat region

Nick Myer, State Real Estate Manager, Victoria and Riverina, says the region is renowned for its reliability, proximity and diversity of enterprises.

“Large rural centres add an element of interest for lifestyle properties, while reliable rainfall and efficient access to a variety of markets make it an attractive region for livestock producers,” he adds.

“Smaller parcels were transacted at a higher rate in 2021, however the strongest increase in median price per hectare was for larger properties. Buyers have drawn confidence from high commodity prices and good long-term prospects for both profitability and capital growth.

“Like most regions, demand has exceeded supply, a trend which is likely to continue.”

Click on the following link to check out cattle stations for sale Victoria.

Common Trends

Elders notes the “obvious blanket factor” of the past decade has been declining interest rates, but adds that needs to be backed by profitability on-farm in order to justify a property purchase.

It adds that high commodity price has been a linking factor between regions along with favourable seasonal conditions.

Above: Low interest rates, high commodity prices and favourable weather conditions have been key factors driving up prices

“Beef cattle prices have had a major impact on median price per hectare growth in livestock regions across the country,” the firm says.

“Average national trade steer prices increased by 29 per cent in 2021 but it’s been the price increase since 2019 which highlights the significance of beef cattle prices in the appreciation of rural property values.

“Since 2019 average national trade steer prices have increased by 71.2 per cent, holding at an average peak of between 535-546c/kg live weight since October 2021. The rapid price increase coincides with a change in weather pattern conducive to restocking at a point of low supply. Queensland was the state with the most to gain from this combination after a tough period of drought and stagnant property prices.”

Above: Lamb prices have been steadily trending higher for several years, underpinning property purchases in mixed farming regions

In contrast, Elders notes that average trade lamb prices increased by 6 per cent in 2021 and 12.4 per cent since 2019.

“However, lamb prices have been steadily trending higher for several years underpinning property purchases in mixed farming regions of New South Wales, South Australia and Victoria,” it says.

Another key factor, according to Elders, is the impact of proximity to rural centres and lifestyle appeal, bringing together a diverse range of buyers.

It notes that since 2019 transaction volume in the 40-50 hectare segment of the market has increased by 35.9 per cent across Australia, driven in part by lifestyle buyers and investors but also by demand from graziers in regions where parcel size is naturally smaller such as north-east Victoria and south-west Western Australia.

Above: Since 2019 transaction volume in the 40-50ha segment of the market has increased by 35.9 per cent

“The result is ultimately more competition for land around regional centres and more incentive for sellers to list,” the firm says.

Generational change is another driver which has anecdotally resulted in a higher volume of listings in several regions across the country, it points out.