Low dollar a blessing for agri and rural property

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ONGOING institutional investment into Australia’s agricultural property assets, particularly from offshore sources, could be encouraged further should the Australian dollar remain at around or fall below $0.70 against the US dollar.

Danny Thomas, regional director, CBRE Agribusiness, told the Australian Property Institute’s National Property Conference on the Gold Coast that while the current bank environment, taking in tightened lending restrictions and the banking royal commission, could present some difficulties locally, the fundamentals of the market still remain strong.

He said overseas investors aren’t influenced by the short term impacts of drought.

“They’re either evergreen investors or long-term investors. They’re still coming in despite, what we would call closer to home as more difficult market conditions, and they’re taking a long-term view of the fundamentals.” Thomas concluded.

Australian Property Journal