First National sells $17.5m Western Downs grazing property as buyers get choosier

First National Real Estate Surat Basin Chinchilla has sold a 5,554-hectare (13,725-acre) cattle property at Durong in Queensland's Western Downs for $17.5 million, in a campaign its agents say showed rural buyers are still active but far more rigorous about water, infrastructure and land-clearing rules.

The freehold breeding and backgrounding enterprise, known as 'Gedley et. al.', can run approximately 800 breeding cows plus 600 progeny under its current management. It was bought by cattle producer Allan Bruggemann to expand his existing operation, after a campaign that drew eight inspecting buyer groups. The Gordon family sold as part of succession planning.

What buyers looked at

Agent Rob Fraser said buyers were judging productive capacity rather than size.

"Buyers weren't simply looking at how many acres they could acquire. They were examining what those acres could actually do," Mr Fraser said.

"Water security, fencing, access, grass, improvements and carrying capacity all mattered, as did how quickly a purchaser could put the property to work."

The property was listed in mid-March and went under offer on 4 May, as buyers weighed higher interest rates, fuel costs, global uncertainty and new EPBC land-clearing obligations.

Agent Juliann Frame said the EPBC changes had become part of rural due diligence.

"The new EPBC requirements meant buyers were looking particularly closely at vegetation, future land use and development certainty," Ms Frame said.

"In this case, almost all timber treatment had already been completed before the new requirements took effect. That provided considerably greater certainty about the existing productivity and operational use of the property."

Gedley was presented destocked with a substantial body of grass, and its infrastructure includes reliable water, extensive fencing, cattle yards, two homesteads and workers' accommodation.

"Buyers are cautious, but that doesn't mean they've left the market," Mr Fraser said.

Helicopter inspections

Mr Fraser ran aerial inspections in an R44 helicopter while Ms Frame covered the property by LandCruiser, and the helicopter allowed inspections to continue during flooding.

Ms Frame said the buyer pool had to extend beyond the district.

"Neighbouring owners weren't necessarily prepared to meet current market value, so we needed to look beyond the obvious local buyer pool," she said.