Australia’s beef real estate market is hot, with wealthy advertisers like Gina Rinehart taking advantage


Record cattle prices, low interest rates and good seasonal conditions have fueled a real estate boom in the northern Australian beef sector with some top names poised to take a profit.

The famous Wave Hill station in the Northern Territory sold earlier this year for more than $ 100 million – at the time a record for a single pastoral farm.

But that has now been eclipsed with the sale of Miranda Downs in the Gulf of Queensland reportedly costing around $ 180 million.

According to Rural Bank, the median price per hectare of Australian farmland rose 12.9% last year.

“At all levels for all amenities, [farmland] values ​​are up, ”said Will Rayner, COO of Rural Bank.

The value of Australian farmland is on the rise, according to Rural Bank.(

Credit: Rural Bank

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Is the market overpriced?

In terms of the ability to generate a return on such huge investments in farmland, Mr Rayner said the fundamentals were strong.

“The ability to get a return on your investment depends on a series of factors, such as how much product you can produce from the earth, the price you can get for it, and then the price of debt – and all of that is very good at the moment, ”he said.

“Particularly in the northern cattle region, where you see investments in better dog fencing and water supply infrastructure, that means productivity is improving and it’s pushing farmers to pay those kinds of dollars.

An ABARES report on financial performance of livestock operations found that the average rate of return for NT livestock stations had almost doubled in the past 12 months to 3%, and that the average business profit for NT stations now amounted to $ 707,000.

Mr Rayner said it would take a few factors for the market to “cool down”.

“But we certainly don’t subscribe to a boom-bust scenario in this case because we think those fundamentals are pretty strong.”

Young cattle in yards at Willeroo
Gina Rinehart’s portfolio of sold properties includes Willeroo near Katherine, NT.(

Provided: Seniors

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Rinehart’s properties on track for July sale

ABC Rural has been informed that the highly anticipated sale of Gina Rinehart’s northern portfolio of breeding stations in WA and NT is on track to be finalized this month.

The portfolio includes seven breeding stations, a feedlot and around 100,000 head of cattle.

“After a very high level of interest, a number of parties were shortlisted for the second step of the process,” said Elders’ agent Tom Russo.

“Physical inspections of properties have been delayed due to the above-average rainy season in the north, but are now complete.

Mr Russo said the sale attracted a mix of foreign and domestic investors, as well as established local beef producers looking to expand their operations.

Retail billionaire Brett Blundy must also feel that now is the time to sell, bringing over a million hectares of NT cattle to market,

For sale are Amungee Mungee, Cresswell Downs and Walhallow Downs, which Mr Blundy bought in 2014-15

It has been estimated that the combined value of Rinehart, Blundy and North Star Pastoral stations for sale in the NT could exceed $ 680 million – although with records continuing to decline, paydays for these large companies could end up being longer. long.

Mr Rayner said it was clear that “some of them are going to make very good profits”.

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Breeders of the capital(Tim lee)


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