Western Australia real estate market update
There is certainly an air of confidence throughout rural Western Australia.
For the most part, crops and pastures are off to an excellent start. Widespread rains have been received across the state during autumn and winter and most districts are looking exceptionally good.
On the back of good opening rains and some attractive commodity prices, WA has planted what is thought to be our biggest ever winter crop, with canola plantings in particular jumping in 2021 after hitting record high prices being reached earlier in the year.
Many of our pastoral regions are also enjoying one of their better years in recent times, with an abundance of feed coupled with strong cattle prices creating a very buoyant market for the few stations which have come up for sale.
The horticultural industries within WA have also been receiving an increasing level of interest and attention, with it being widely accepted WA offers some untapped potential in the areas with good water supply.
Despite some hiccups, including the damage caused by Cyclone Seroja in April to districts within the Geraldton Port zone and dare we say it, too much rain for some in southern areas, the state as a whole is set up nicely for a strong production year.
Rural properties remain keenly sought after, with strong demand still being received for lifestyle, broadacre cropping, high rainfall grazing, horticulture and pastoral properties.
Price growth for WA farmland has been strong through 2019 and 2020, with the 2021 Australian Farmland Values report produced by Rural Bank indicating WA farmland experienced a massive 19.3 per cent jump in median prices in 2020. The report indicated strong growth was experienced in all areas, although strongest in the Geraldton Port zone and the South Coast of WA.
Currently, the amount of available farmland in Western Australia remains limited. As we head into our traditional selling season, additional properties will come onto the market, however it is not thought there will be a major influx. The confidence and opportunities within WA agriculture is seeing expansion rather than consolidation remaining to be the focus of most growers.
Given the pent-up demand for rural properties, particularly for quality properties of scale, it would appear the strong prices being achieved could continue for some time to come.
Wishing our growers and readers all the best for the remainder of 2021.
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