Coladdi farm auction strong sign for rural land prices
A major piece of farming country in the prized Liverpool Plains of northern NSW has been snapped up at auction for $14.5 million in a further signal of surging demand for prime agricultural land.
The 2232-hectare farm Coladdi, owned by the Strang family, was sold to a private farming family from the Liverpool Plains after strong bidding from five registered bidders at auction through Ray White Rural.
Ray White's Chris Korff said there had been "spirited bidding" and the result was "consistent with expectations".
Coladdi Station at Tambar Springs on the Liverpool Plains. Supplied
"The likes of this country has not been sold for a while so it's difficult to tell the change in value," Mr Korff said.
According to Rural Bank's Farmland Values Index, values in the Liverpool Plains have been on the rise with the median price per hectare about $4196, up from a three-year average of $3900.
The median value of farmland in NSW increased by 10.1 per cent to $3628 per hectare last year following a 10.2 per cent increase in 2015.
Herron Todd White valuer Angus Ross said the Liverpool Plains had recorded a significant number of rural sales showing high values.
"There have been a lot of mining-related transfers," Mr Ross said, "Some of the miners are paying two to three times the market value to secure the property."
Ray White Rural chairman Paul White said the sale of Coladdi, which has about 1907 hectares of arable controlled traffic farming, was indicative of the slight increase in the number of farms listed on the market.
"There are quite a few properties starting to come onto the market," Mr White said. "I think people have a lot more confidence in selling now."
In many regions of NSW demand has increased along with sales activity driven by the strength of the livestock sector.
Land capable of running livestock and crops – such as Coladdi – have continued to be highly sought after and achieved premium prices. Coladdi also has 323 hectares of grazing country with livestock infrastructure.
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