Rural revival

The 3401 rural zones properties are valued at $240,431,610.

While the 12 month review shows an overall decline, residential land has actually increased by 11.82 per cent from the last local government valuation in 2016.

In stark contrast, the value of rural zones land in Edward River increased by a whopping 21.03 per cent in the 12 months to July 2019, and by 82.12 per cent since the 2016 valuation.

In July 2019, the 1311 properties zoned rural in the Edward River region had a combined value of $683,131,660.

Combined with other small increases, it means the total land value for Edward River has increased by 13.94 year on year and 53.72 per cent since 2016 — to $968,136,570.

It is a similar story in the Murray River Council region, where the total land value has increased to more than $1.9 billion (26.28 per cent since 2016).

Residential land values dropped by 0.94 per cent year on year but increased by 7.58 per cent since 2016, and rural proprieties increased by 19.90 per cent and 40.87 per cent respectively.

Elders Rural Real Estate agent Matt Horne said a number of factors have contributed to the increase in rural land values.

‘‘I believe the major driver of the increase in values is low interest rates, however we are seeing a number of young people return to their family farms and this in turn has motivated family operations to expand their farming enterprises,’’ he said.

‘‘For many farmers, expanding their land base has helped improve efficiencies, particularly in respect to labour and plant and equipment.

‘‘With the lack of water allocations over the past few seasons, most farmers have adopted a dry land farming model, with some farmers acquiring country in an attempt to offset the lack of production that would generally come from their irrigated summer and winter crops.

‘‘Some farmers with substantial cash reserves have decided to withdraw their money from low interest-bearing term deposits and invest in land where they receive an annual return, coupled with long term capital growth.

‘‘In light of the lack of property listings locally and nationally at present, I believe those who decide to go to the market with their property in the next 12 months will see good interest and selling conditions.’’

While a negative figure for the year on year residential valuations may look bad, Big River Real Estate principal Angela Walker said the margins are small and are indicative of a fairly steady market.

She said the decline should not have too much of an impact on the decisions of property owners and potential, future vendors.

‘‘There is concern for some over job security locally, especially with drought and water availability, which has in turn impacted buyer confidence,’’ she said.

‘‘However, it is important to note the Deniliquin real estate market is doing well, specifically the sales market under current economic conditions.

‘‘I wouldn’t expect this percentage to directly impact residential property owners considering selling and those going into the market.

‘‘With such uncertain economic times ahead for our area, it is difficult to forecast what a future report would look like, but our market and property values seem to remain steady under trying conditions.’’

In the four years since the last local government valuations in 2016, all Edward River Council zoning categories have increased in value — including commercial land which is up 12.53 per cent, and industrial land by 13.45 per cent.

The only decline in Murray River was for waterways zoned land, which reduced by 26.48 per cent overall since 2016 and fell 31.02 per cent since 2018.

Commercial land in Murray River increased by 13.37 overall since 2016, while industrial land increased by 11.11 per cent.