The semi-arid cattle holdings spread across Central Australia until 2015 have been closely-held by their owners, but this year the region has seen an unprecedented surge of transaction activity totalling over $50 million which far exceeds anything experienced in recent times.
Most of these cattle holdings have been snapped up by local Australian buyers from the eastern states looking to expand operations.
Some properties have also been purchased by overseas investors who are seeking out lower costs of production and to enterprise scale, amongst seizing other opportunities provided.
The most active buyers & sellers in the region are Tony and Pam Davis, cattle producers who sold their Top End country (Limbuyna and Moroak) in order to buy 3 adjoined stations in Central Australia.
With the addition of the Narwietooma, Derwent and Glen Helen stations conjoining their existing Hamilton Downs & Amburla stations, the couple own a continuous stretch of country which reaches 200km west, out from Alice Springs following along the MacDonnell Ranges.
Landmark Harcourts Alice Springs, Andrew Stephens is confident the elevated transaction activity will continue, with more transactions expected in early 2016.
Mr Stephens believes increasingly buyers are cottoning-on to the viability offered by cattle holdings in Central Australia. They’re recognising these holdings present cost efficiencies and understand the suitability of cattle to today’s markets.
Jock McPherson, seasoned property agent from Territory Rural McPherson agrees. According to him, buyers are realising what potential the area holds.
Mr McPherson identifies 8 benefits he believes Central Australia offers buyers which make the region ideal:
1. The cattle produced in Central Australia are very suited to both export and slaughter markets.
2. Central Australia is the most affordable area to run cattle.
3. The regions animal quality has bettered greatly.
4. The area is ideal for running and fattening cattle on a large-scale.
5. There are no bluetongues in Central Australia so the cattle have wider access to different overseas live export markets.
6. Travelling distance from Central Australia is the same to Darwin, to Adelaide, to Townsville & nearly to Perth. With roads improving, accessibility will increase.
7. Huge numbers can be run quite cheaply due to the size of the cattle holdings.
8. There is also an opportunity to become organically certified for production fairly easily.