The effects of both the decision to allow the importation of bananas from the Philippines by the Federal controlled, Biosecurity Australia, and the extension of a moratorium on regrowth clearing by the Queensland Government have been identified as factors which could hinder property sales in the Sunshine State.

In its April Month in Review publication, property valuer Herron Todd White (HTW) has suggested the Government decisions will have flow on effects on farm viability and therefore rural property values.

In summing up the state of the Far North Queensland property market, HTW suggests the Federal Government’s banana imports decision is likely to virtually bring sales of banana farms to a standstill until imports begin and the affects on local banana prices can be determined.

"If imports result in disease outbreaks then not only is there the potential for falling market prices but substantial falls in farm productivity, farm incomes and flow-on effects to local communities due to remediation costs and likely quarantine restrictions," the report states.

The April Month in Review also addresses the State Government's regrowth clearing moratorium.

"If the moratorium is ultimately extended indefinitely, this will only serve to devalue large tracts of land that have regrowth issues," the report states.

"The treatment of regrowth is regarded as an ongoing management tool of the pastoral industry and helps to underpin both the viability and value of the property.

"A step that can be taken to provide for certainty going forward, is the obtaining of a PMAV for the property.

"This effectively allows the land classified within the PMAV to be managed as required by the landowner in perpetuity.

"As valuers, we see PMAVs as an asset and no doubt the same is interpreted by the market in general."

On the Australian rural property market in general, the HTW report suggests things are still in a healthy condition as large scale local and international investors have identified the Australian agricultural sector as a safe place to "park" money and ride out the storm.

"Generally the agricultural fundamentals have remained sound, and depending on specific geographic market, rural property values have held remarkably well," it says.