CONFIDENCE stimulated by recent widespread rain in Queensland is not yet being shared by banks, other fin-ance houses and the Taxation Department.
This clear message has emerged from a survey of major rural property marketing players, who have moved into wait and see mode until the next three or four weeks give a clearer indication of what's ahead in both property offerings and likely demand.
Landmark's Queensland and Northern Territory real estate manager Geoff Hickson said it would be another few weeks before agents would know if a lot of property would come onto the market.
"Inquiry definitely has improved but the banks and taxation are causing head-aches," he said. "Just when we believe we have a deal over the line, the bank will say no."
Mr Hickson said better quality properties would conti-nue to sell, but properties with issues of tree clearing and low standards of improvements were definitely off the boil.
He forecast strong demand for better style grain-growing properties in districts such as Wandoan and Taroom, where there also was a mining boost to the economy.
Doug Knight, Toowoomba -based senior rural valuer for Herron Todd White said: "I cannot see values appreciating in the short term.
"We will see activity as a result of the rain, but more positive activity will need to happen before it translates into appreciation of land values.
"The banks and other fin-ance providers now have definitely switched tack to lending based on a cash-flow basis, rather than asset lending, simply to help an owner build up more property."
Mr Knight said that while a dual rise in meat sheep and wool prices might encourage more graziers to return to sheep, a lot of woolsheds had been lying idle for a long time and would need serious maintenance to get them into working order.
Ray White Rural's national marketing performance mana-ger, Bruce Smith, presented a bright overview of the market, based on benefits he perceived from the rain.
"It's the best start we have had to a season for perhaps 25 years and, apart from being widespread in Queensland (the rain) has also brought relief to parts of NSW where landhold-ers were begging for rain," he said.
"A lot will depend on how the Australian dollar fluctuates over the next few months, but I am confident many more own-ers will want to go on the mar-ket now, as there are greater opportunities to sell."
Andrew Adcock, the principal of Ray White Rural, shares the same positive views about a strong property market ahead but admits the banks' policy will have a major influence on the outcomes.
"Over the next four weeks we will have a good indication of where the market is heading," he said.
"Ray White Rural will conduct a number of auctions in various locations including macadamia nut farms, grazing property and farming country across a wide range of Queensland. Inquiry has still been very positive but the banks will have the most influence on the mar-ket."
Veteran property market identity Dick Allpass of Elders said: "We have seen a market correction of about 20 percent.
"This has boosted extra confidence and rural property markets are at a turning point, but I don't see the likelihood of an overall market uplift.
"Overall, I suggest there will be a general levelling off and gradual improvement, but the degree of improvement will depend on political issues, world environmental pressures and the financial situation.
"There seems to be decli-ning confidence in the ability of Queensland Premier Anna Bligh and Prime Minister Kevin Rudd to insulate the rural sector from industrial law and other factors that will hamper employment and spread through the whole rural industry."
Mr Allpass said rules on lending money for property purchases definitely had chan-ged, with present lending more strictly demanding investment that could generate income and stand up in its own right, not the past pattern of lending as if there were no tomorrow.
Email a friend