CBRE regional director Danny Thomas said there was strong interest across all sectors.

“It was cropping land at the beginning of the year, anything with a bit of scale, and that was across the board,” Mr Thomas said.

“Most recently, in western Victoria, there was very strong interest in anything with livestock or mixed farming and anything with scale.”

Domestic purchasers were more than able to hold their own, against foreign investors, he said.

“More and more you are seeing the domestics being able to meet the same value, or very close to the same value, of the foreign purchasers, without the risk of the Foreign Investment Review Board (FIRB),” he said. 

“We have seen more properties transact to locals, at the expense of the foreign buyers, in Victoria.”

He said significant sales included Banongill Station at Skipton, sold to the Laguna Bay Pastoral Company, for a reported price of $280 million. 

Laguna Bay was the first asset for the US pension fund-backed Washington State Investment Board. The 6880-hectare cropping and grazing property was owned by former South Melbourne VFL footballer Stewart Gull and his wife Sue.

Another significant sale was Mount Fyans, the first purchase by Harmony Beef and Cattle – a company ultimately owned by the major Chinese group He Sheng. ​Located at Dundonnell, the aggregation covers 5900 hectares of contiguous land.

One of CBRE’s big sales was the Demeter properties, between Skipton and Ararat. Seven western Victoria farming families joined to fight off foreign and domestic corporate investors to buy the 10 farms across 5200ha for an estimated $30 million.

“The domestic purchasers are back in the market very, very strongly,” Mr Thomas said.

“One of the things that shouldn’t be lost on us is that money has become quite cheap, because of the desire of our main banks to get some money out there.

“That lending has meant here have been some farming families out there who, despite the fact income may have been down over the last couple of years, are taking the opportunity to get themselves set, and making some generational purchases.”

He said new foreign investment rules, which caused delays in the sale of the Kidman empire, had complicated the sales process.

 All land purchases above $15 million by foreign investors are subject to FIRB approval

“The vendors see it as a risk, particularly if it is a first time foreign investment and if there is a domestic purchaser within 10 per cent of what the foreign investor is offering,” Mr Thomas said.

“They will regularly take the ‘bird in the hand’ for risk-free money, rather than going to the foreign investor.”

He said there was also anxiety, among foreign bidders, over being able to compete for property.

“In the same way, John Howard talked about immigration, ‘we will chose who comes here and the means by which they will come’, we have that sovereign right, in terms of foreign investment,” he said.

“I don’t have a major issue with that, but I think the unintended consequence of the legislation is the messaging.

“Capital, when it is confronted with not being able to deploy in a timely way, will make the decision to go elsewhere.

“Capital is like water – it will find the easiest way.”

Mr Thomas said agents had not noticed a significant spike in sales of dairy properties, despite the recent trouble in the industry.

“We are not seeing the forced sales coming through, as we did post the Global Financial Crisis (GFC),” he said.

“I think the stakeholders and financiers are being pretty sensible, I think they are seeing it as an aberration, it has a massive impact, but a lot of people are being nursed through.”

There was no significant discount on any ‘A’ grade properties being offered – “ there is always a flight to quality, even in down times,” Mr Thomas said.

Colliers Agribusiness head Shane McIntyre said 2016 had been one of very few, in the past decade, that had seen properties presented in such wonderful seasonal conditions.

There had been unprecedented returns from beef, prime lamb and horticultural activities, with a record crop yield.

 “When you combine all that with a substantial positive outlook for agriculture, it has attracted investors from across the globe,” Mr McIntyre said.

 “We have seen investment from Europe, from China and the US, at levels not seen for many years.”

He downplayed the effects of the changes to foreign investment rules.

“It’s a process to try and understand the motivation and qualification of the buyer, or buying entity, to ensure the buying entity abides by the rules, laid down by the Federal government for foreign investment.”

”I can only see a continuation of the strong demand for rural property, across all segments, from both local, national and international buying interests,” Mr McIntyre said.

“The climate of historical low interest rates, more favourable Forex rate and insatiable appetite for Australia’s clean and green, efficiently produced commodities will continue.”