Weekly property review: Carbon contracts show potential to increase land values
Linda Rowley, BEEF Central (AU)
DESPITE the returns on offer, the market for grazing properties that include carbon projects is still seen as relatively immature.
However with carbon trading prices rising, this situation is now changing, with property type and scale of carbon contract now influencing the overall value of grazing enterprises.
Nick Dunsdon from Nutrien Harcourts GDL specialises in rural property sales from Cunnamulla to St George districts in western Queensland.
He believes landholders in the region have become more accepting of the carbon market.
“There is more confidence today and a better understanding of how it all works, by both landholders and potential buyers, in the light of where the price of carbon has gone and where it is forecast to go,” Mr Dunsdon said.
Five years ago, property sales in the region were slow, but there was growing interest in carbon farming and its potential impact on future property transactions.
At the time, Mr Dunsdon told Beef Central he knew 15 landholders who had taken up carbon farming and while it was still early days, said there were many projects in place and many more underway.
Today, Mr Dunsdon admitted it is slim pickings to find a property suitable for carbon, explaining that most have an existing carbon project and several have sold...