Property valuers Martin Tremain and Stuart Prowse provide a brief insight into who is buying farms and the factors influencing land values particularly in northern NSW but with the trends relevant across most of rural Australia. Our experience in valuing rural land for differing reasons, including mortgage security, acquisition and asset management etc, indicates that there is no single factor driving rural land values. Each property transaction upon analysis indicates there is normally a range ofinfluencing factors affecting the sale price. Besides the obvious physical attributes of the farm the other main factors influencing values include commodity prices, seasonal conditions, economic/lifestyle requirements, statutory requirements, purpose ofsale and of course supply and demand. Market value is defined by the International Assets Valuation Standards Committee and the Australian Property Institute as follows: "Market value is the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion." This is the basis from which market valuations are undertaken. Many property sales are influenced by 'special' interests pertaining to either the vendor or purchaser. For example, forced sale or special purpose acquisitions justifying above normal land values.
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