Is Australia’s equine property sector the next big thing?
Australia’s growing equine lifestyle and sporting sector contributes significantly toward the economic, social and health prosperity of the nation. Will this contribution drive interest and value in associated property?
We believe it will and here’s a few reasons why!
1. An enormous revenue generator.
Activities across horse racing, equestrian, polocrosse, rodeo, trail riding, western and tent pegging (to name a few equine activities) contribute billions in annual economic benefit toward the Australian economy.
The sector is also a direct source of employment for hundreds of thousands of Australian’s and indirectly responsible for the prosperity of thousands of third-party businesses and individuals that provide ancillary services to the sector.
For example, if you combine horse racing in Victoria* with equestrian sport nationally* these two specialist equine activities alone contribute a combined estimated annual economic benefit toward the Australian economy of $3.1 billion*. Add to this the economic contribution made by every other state involved in horse racing, polocrosse, rodeo, trail riding, western and tent pegging and you begin to appreciate the enormous value the sector adds to our economy and livelihoods of many Australians.
2. State & Federal regional and rural incentives.
State and Federal Governments are very supportive of activity that stimulates employment and business opportunities for regional and rural communities and with the vast majority of equine activity taking place within these regions this is a boon for the sector.
Regional and rural Government incentives can include stamp duty concessions on the purchase of property, employment incentive schemes and a host of other grant and funding programs. Most regional and rural grant and funding programs can be researched through the Regional Development Australia website.
3. Best in the World.
Across all equine sporting disciplines Australia can lay claim to some of the best horsemen and horsewomen, equine facilities and equine sporting events in the World. Our excellence in all categories attracts interest from industry stakeholders across the globe including trainers, racing syndicates, breeders, industry investors and tourists. Some of our major equine events include:
- Melbourne Spring Carnival including the Melbourne Cup
- Sydney Autumn Racing Carnival
- Magic Millions Yearling Sales
- Polocrosse World Cup 2019
- Australian Dressage 2018
4. Best of breed.
According to the Thoroughbred Breeders Australia website, Australia is “second only to America in terms of our thoroughbred horse population” with the number of mares and stallions in Australia dwarfing that in other established breeding countries such as the UK, Ireland, Japan and New Zealand.
Our position of breeding dominance is attracting growing interest from global investors, particularly from Asia, including groups such as Shanghai’s China Horse Club who’s members now own several Australian leading race horses and notable Australian equine stud farms.
5. We have available land.
Regional and rural Australia is blessed with available land suitable for a host of equine business, sporting and lifestyle pursuits.
For example on a grand scale, Pakenham Race Course was relocated from Racecourse Road Pakenham to a 608-acre site at Tynong in 2014. The new Pakenham Race Course is a state-of-the-art facility complete with flood lit grass and synthetic surfaces, stabling, training tracks, gated residential and commercial precincts.
Commercially, Victoria’s Strathbogie Ranges (north-east of Melbourne) is known as Victoria’s ‘Horse capital’ and centre for thoroughbred race horse breeding in Victoria. It is also home to Lindsay Park Racing Stables owned by David Hayes and the largest International racehorse breeder operating in Australia, the Darley group.
From a lifestyle perspective the Mornington Peninsula (1 hour south-east of Melbourne) has the highest concentration of equine lifestyle properties in Victoria, with established equine properties (or property suitable for upgrade in order to conduct equine activity) readily available for purchase.
Overall we believe the current level of activity and investment in Australia’s equine industry will drive property values within the sector.