WA rural property market significantly subdued: HTW

The months of December and January are generally quiet months in South West Western Australia's rural property market with many taking holidays and taking stock post harvest, according to Herron Todd White’s latest report.

The property valuation firm says that their research of Landgate records indicates 15 rural properties over 40 hectares settled in December 2016 and 13 properties over 40 hectares settled in January 2017.

Compared to last year’s 97 properties over 40 hectares in December 2015 and 82 properties over 40 hectares in January 2016 this is significantly down.

“We note that these settlements are likely to be from sales in the previous six to 12 months however are considered to give an indication of market activity.

We also note that the overall sale prices are also down with only five sales over the $1 million mark compared to 53 sales for the same two month period last year,” the report stated.

This is likely to be a result of a number of factors including severe frost events resulting in down grading of yield and quality estimates which were likely to have postponed purchasing decisions and also supply issues with a number of the larger landholdings being purchased last year and a number of above average years reversing some producers’ decisions to exit the industry.

“As we now know it has been reported that Western Australia has just had a record harvest on the back of an above average harvest and as a result market activity is likely to increase in line with an increase in liquidity throughout many regions,” the report stated.

Recent rainfall events across many wheatbelt areas have resulted in flooding but also provided some soil moisture with a number of farmers already working their land ready for seeding.

Overall confidence remains high in many districts and we are likely to see more sales activity as a result which given the supply issues in some areas could result in an increase in land values.