After several years of devastating drought, agricultural production hit a record in 2021, meaning many of the country’s primary producers have taken the chance to diversify their incomes by purchasing commercial real estate.
Ray White chief economist Nerida Conisbee said Australian agricultural production hit an estimated value of $73.5 billion in 2021.
“Most commodity types saw increases, driven not just by increased demand globally, but also supply chain disruptions pushing up prices, and COVID-19 infection problems overseas that tended to be much more severe than Australia,” Ms Conisbee said.
“In 2021, great weather in Australia really helped, particularly at a time when many other places didn’t have such great conditions.”
Ray White Commercial Townsville principal Graeme Russell said more primary producers had been looking to buy commercial property thanks to the record year.
“There has steady stream of country buyers given the record prices for crops and livestock,” Mr Russell said.
“The farmers are celebrating the end of the drought and investing in income producing property.
“Diversification is the key to success – there will probably be another drought or flood or bushfire.”
A property at 259-261 Charters Towers Road, Mysterton, sold to primary producers from Northern NSW for $5.25 million, with a 6.5 per cent yield, after they were introduced by Ray White Commercial Townsville director Troy Townsend.
“The former Royal Oak Hotel site was developed by a well known local family,” Mr Russell said.
“The modern complex enjoys an 84m frontage to a main arterial road, with 62 on site car parks, and is anchored by a nine year lease to one of Queensland’s most successful car wash operations.
“Quality stock is becoming harder to find and low interest rates are driving yields to all time lows.”