วันพุธที่ 20 กันยายน พ.ศ. 2560

Australian Rural Property Market on the Rise

After some 18 months of a very subdued rural property market in most states of Australia there is signs that buyers are once again looking ฝากขายที่ดิน at investing in rural properties.

Prior to the Global Financial Crisis the Australian rural property market was very strong with strong sales growth and values over most rural industries and this was despite the worst recorded drought in history being experienced in the eastern states of Australia.

Along with the Global Financial Crisis came a changed policy from the financial institutions operating within the agribusiness sector of Australia. Prior to the Global Financial Crisis most financial institutions were lending money for the purpose of purchasing a farm based upon the assets owned by the borrowing party.

Money was relatively cheap and competition was strong so many many deals were made. The result of this easy access to funds also had the effect of pushing up property values to where they got to a stage that most properties were just too expensive to make a return on your investment.

After the Global Financial Crisis the property market went into a very subdued state brought about by a change in the lending policies of the financial institutions who were now and still are insisting that the property being purchased has the ability to produce sufficient income to cover the banks repayments.

At the same time of there being a change in the lending policies by the financial institutions buyers of agribusiness properties became reluctant to pay the high values that many property owners were seeking.

The result being that by the middle of 2009 the rural property market in Australia had almost grounded to a halt with very few sales taking place.

The property market has remained subdued for some 18 months now brought about by the lack of available finance and a reluctance from property owners that values had fallen from the peak of 2008 and unless they were willing to accept that there was now a new set of values in place then the chance of them being able to sell their properties was very limited.

In most parts of Australia the worst drought in history has been broken, in fact in many areas of eastern Australia particularly Queensland the reverse has occurred with many areas experiencing flood conditions. The outlook for most Australian commodity prices such as wool, beef, grains, sugar cane etc are seeing strong demand both internally and on the world export market.

It has only been in recent months that rural property agents are reporting a lift in inquiry levels and buyer activity,there has also been increased inquiry and purchase from international purchasers of Australian farms and rural properties.

There has been a general acceptance from the financial institutions, from buyers and from property owners that new set of values have been established in most areas and as a result confidence is back in the Australian property market.

Whilst we will see an increase in buyer activity we will not see an increase in property values generally although as always n those rare blue ribbon properties do come up for sale they will as always make a premium.

For those looking to buy there are many opportunities to acquire good quality properties at realistic values.


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