This article is from the Australian Property Journal archive
A PERMANENT Water Entitlement in Victoria’s Goulburn Valley has hit the market as the region transform from dairy farming to permanent plantings and water entitlement sales and demand pick up.
The substantial 1043.30 ML of High-Reliability 1A Greater Goulburn Permanent Water Entitlement is, available for transfer in a single Water Entitlement Entity (WEE) Holding.
The entitlement spans more than 1000 megalitres of Goulburn Murray 1A zone water, can be delivered via the channel system or as a private diverter, pending approval.
Matthew Tolmachoff of Colliers Agribusiness is managing the sale via online auction.
“The area is transforming, moving from dairy farming to permanent plantings focusing on fruit and nut production,” said Tolmachoff.
“The increased demand for permanent plantings will lead to more water use, which makes this an opportunity for investors to improve the reliability of their farms by securing more water entitlement.”
The licence represents an opportunity to cure an entitlement essential for supporting irrigation in the Goulburn Valley.
With industries in the Goulburn Valley including extensive agricultural activities like fruit growing and dairying, with the food processing industry producing around 25% of Victoria’s rural output.
“The evolving market conditions highlight the urgency for private investors to act now. As interest rates are expected to stabilise and potentially decline in the coming year, securing water entitlement now could provide a strategic advantage,” added Tolmachoff.
“Market interest and prices for permanent water entitlements are gaining momentum as interest rates stabilise in the second half of this year. The investment sector is aligning its strategy with predictions of lower rates next year and a stable BOM weather forecast. Investing in water now, prior to the announced Commonwealth buyback program takes full effect, will take advantage of a long-term repositioning of increased demand for limited supply of water licenses.”
The online auction for the Greater Goulburn Permanent Water Entitlement is scheduled for 10 October 2024.
