Extremely low interest rates combined with a buoyant cattle market are behind an historic peak in grazing property values in north and north west Queensland, according to Herron Todd White valuer Roger Hill.
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Mr Hill said all grazing property market districts in the north were now equal to or well above the previous cycle peak in 2008/09.
In general, the market is trading at a factor of 1.5 times the value rates of the peak of that cycle, he said.
Much of the activity has been in the Charters Towers/Greenvale area in recent years, where the typical small to mid-scale forest breeding property market segment pushed through the historic peak in the last 18 to 24 months.
"Of all the grazing property market segments in the region, the downs country to the south of Hughenden to Cloncurry equaled the 2008/09 peak type value rates in the last three to six months," Mr Hill said.
"The downs country to the north of the Hughenden to Cloncurry line is outpacing the growth profile of the previous peak.
"Why - it's the incredibly low interest rates, much lower than the previous boom.
"And in conversations with bankers there's no increase in the foreseeable future."
Despite that, Mr Hill said the market was not in a state of 'emotional exuberance'.
Instead, he said owners were taking one of two approaches to the low interest rate - either reducing debt or taking the opportunity to expand.
"Some substantial graziers are paying down debt - low interest rates are OK but they're concerned about business parameters going forward," he said.
"The rates are so low for a reason.
"So they're repositioning and waiting, whereas the ones choosing to move the chess piece today know they're paying a high price but will have their expansion under control when the economic storm hits."
Mr Hill said the cattle market was helping make people's businesses profitable and while limited country was available, it was a 'perfect storm' for property values.
"With an average wet season, no interruptions to supply chains, and with the global demand for protein continuing - all things being equal, we should see this continue," he said. "Enough people are putting the brakes on that we won't see anything silly happen."
Among the buyers were long-established families as well as corporations seeking more exposure in the north.
Mr Hill's comments come as Gulf property Nardoo is set to go to auction on September 11.
To be auctioned by Ray White Rural in Brisbane, Nardoo will be offered with cattle and plant. The estimated carrying capacity is 8000 breeders with progeny to weaning.
Located 280km north west of Cloncurry and 95km west of the Burke and Wills Roadhouse, the property has excellent access via the bitumen Wills Development Road.