Real estate continues to boom in the south-west with a Willatook farm selling for about $7000 an acre.
Charles Stewart Real Estate Warrnambool director Nick Adamson said that was about as high a price for land west of Koroit as ever achieved.
Charles Stewart's Warrnambool branch conducted their first online auction on Thursday with the sale of the property Willarrong on the Willatook-Warrong Road near Warrong.
The 98.35 hectares was promoted as suitable for high performance intensive livestock and sold immediately after the auction at an undisclosed price.
Bidding started at $1.6 million, with two active bidders taking the price to $1.7m, before it was passed in and then sold for "about" that price.
Rural specialist Nick Allen said Willarrong, formerly a dairy farm with a 19 a-side herringbone platform, had extensive cattle yards.
"In more recent times the property ran a contract heifer rearing enterprise," he said.
The cornerstone of Willarrong was a tastefully extended and fully appointed modern weatherboard four-bedroom family home, set in a picturesque and private garden.
"Our clients were enthusiastic about the opportunity to market their property on a digital auction platform and due to the COVID pandemic, with restrictions on public auctions, we were keen to sell their property through the AuctionsPlus online auction method," Mr Allen said.
"The process was relatively simple and relaxed with five registered bidders from near and far, including locals, the Wimmera, South Australia and Sydney."
Mr Allen said the advantage of online auctions was that those interested could bid without physically attending an onsite auction.
Mr Adamson said Charles Stewart Western Victoria had now promoted three successful online auctions, all exceeded expectations.
"Real estate, both urban and rural, is booming," he said.
"There's been plenty of coverage in your paper about residential and from a rural perspective it's a perfect storm.
"It's been a cracker of a season, we've got low interest rates and strong commodities, which all leads to plenty of interest.
"Due to uncertainty in alternative investments, agricultural land is being viewed alongside bricks and mortar, people are turning to that."
Mr Adamson said that 12 months ago corporate money was dominating agriculture, but there was now a significant move from local interests.
He said often families were purchasing the properties of neighbours or nearby.
"That's indicative of families being as comfortable as ever about their core business and they are purchasing near or adjoining land," he said.
Mr Adamson said land owners were also building equity of up to 15 per cent a year, which when combined with low interest rates, made buying extremely attractive.
"The $7000 per acre for country west of Koroit is as good a price as we've heard," he said.
He said two types of parties were interested in the Warrong property, dairy farmers and those involved in intensive livestock grazing.
"The new owners are likely to run sheep, with a focus on prime lambs," he said.
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