From late April it is apparent the agricultural market and associated sentiment has recovered and likely now exceeds the pre COVID-19 levels of strength and demand. This sector of the market is resilient and has low volatility in comparison to other property sectors.
The fundamental drivers of the sector – interest rates, exchange rates and commodity prices all remain favourable for producers. This health crisis has seen renewed demand for Australian grown produce and while discretionary spending has reduced, food remains essential and in high demand.
The positive story continues as existing landholders and producers are seeking expansion or growth of enterprise, and there is continued demand from entry level buyers, corporates and institutional parties and investors seeking exposure to the resilient agricultural industry during this time of economic uncertainty.
Except for some potential risks associated with a downturn in export, credit policy and labour it is a positive story for the Agricultural market sector with healthy future outlook.
For further questions or assistance with your agricultural property needs contact Acumentis on 1300 882 401 or request a quote.
To keep you informed, we will share insights on the impact Coronavirus is having across various sectors of the property market via a video series over the coming weeks.
View our COVID-19 Conversations with Acumentis series here.