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Cattle kings pay over the odds for stations
25 Oct 2004
More than $1 billion in Queensland cattle property sales this year has one agent predicting that prices are overheated. Peter Honnef, managing director of valuers Herron Todd White said the confidence in the cattle sector was similar to the cane farm and bust in the late 1990s. Cattle prices in Queensland increased by around 25.1 per cent a year over four years. In turn, prices paid for northern Queensland cattle stations between 1999 and 2004 increased by 30 per cent increases each year. As a result, yields on cattle stations are down. Honnef said that historically the top operators earned returns of between eight per cent and 10 per cent, but yields were now back to between five per cent and six per cent.
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