An auction at Naringal on Thursday afternoon has set a new benchmark price for farmland in the south-west.
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An 82-hectare property at Swans Lane near Naringal sold for just under $3.5 million - $17,200 an acre.
Elders Real Estate agent and auctioneer Rob Rickard said the property was originally tipped to sell for more than $10,000 an acre.
"She was a big day out, I must say," Mr Rickard enthused on Friday morning.
"It was my privilege to offer the property on behalf of vendor Jean Chislett, who is in her 90s and her late husband Norm, who was extremely well known in the district.
"Their children Gary, Don and Lynee were all in attendance.
"Jean was terribly excited. She drove away with a smile which would have been tinged with sadness leaving the property for the last time."
It's understood the land was bought by the local Membrey family.
"There was very strong local interest. It was a fairly surprising day out," Mr Rickard said.
"It's among the better country for milking cows in south-west Victoria. It's highly regarded and tightly held.
"There was a ripper crowd of about 80 people, a great turnout. Every farmer within 20 kilometres seemed to be there.
"I thought the only thing that could cause a shadow on the day was the lunar eclipse."
Mr Rickard said smaller lifestyle blocks had previously been sold for excellent prices in the region, but the Swans Lane auction was just about farmland.
Bidding started at $9000 an acre and rose in $200 bids, pushed along by four active bidders, to the sale price of $17,200.
"There were interested parties who never got an opportunity to bid and no opportunity to buy," he said.
Harris & Wood Real Estate rural specialist Tom Symons said that while residential land got the most airplay, capital growth of farmland had dwarfed residential prices.
"It's been doubling and triple in some cases," he said.
Brian O'Halloran and Co principal Brian Hancock said the Warrnambool and district market was vibrant.
"It's the old story, if a place come up beside you and you need land then you pay a premium," he said.
"There's talk out there prices will hold up, but the downside is the dearer the land the dearer the product that comes off it. It's a factor in the cost of production," he said.
The property features two older homes, a sleepout and infrastructure including a large fully enclosed machinery shed, a large hay/machinery shed, a workshop with concrete floor and power connected, a disused dairy and yards with crush and loading ramp.
The land is subdivided into 10 main paddocks and serviced by a central laneway, bore water to troughs throughout and extensive road frontages to three roads.
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