AS the spring and summer selling season is starting to slow down, with the end in sight for the Eastern Wheatbelt, as well as other regions in Western Australia, agents said the 2019/20 period has been much quieter than recent years.
Keeping in mind that the previous selling period of 2018/19 was exceptional for WA and the Eastern Wheatbelt, agents expected a rather quiet year.
Elders real estate specialist Will Morris suspected that the bumper 2018/19 selling season "flushed out" a lot of the supply.
"We had quite a run of sales particularly last year - every listing we had sold, so the number of sales was quite large," Mr Morris said.
"So I think that flushed out a portion of the market.
"But also, because of an increase in land prices over the past two seasons, I think at times some people who were thinking of selling might have thought it was a good time to sell, so perhaps it brought some of those sales forward."
He said other transactions were just part of the natural market cycle, such as farmers retiring who don't have children coming back to run the farm.
"I think good grain, wool and livestock prices also contributed to the market being strong, so I think people see agriculture as a fairly safe investment in a time when some of the other real estate markets have been a bit off."
Landmark Harcourts rural real estate specialist Simon Cheetham said a relatively dry season hadn't affected the market significantly as there has been consistent strong demand.
"Most of the farms that were listed have sold and what came onto the market got really strong interest," Mr Cheetham said.
He said land prices continued to trend up, which had been gradually increasing since 2014.
"Prices are pretty strong and seem stable, demand is strong and the dry season probably made people a bit more cautious but there are still plenty of people who want to expand," he said.
"High quality properties with really good improvements and soil types and that have been well managed are definitely highly sought after."
Mr Morris echoed this view of land values and said prices saw particularly high growth in the past two years, which were spurred on by the good season and strong market conditions.
"I haven't seen prices fall since then but they might have plateaued and stayed firm, because it is unachievable to keep that momentum in pricing as it did over that two-year period," he said.
"It doesn't matter where you are in WA, you will always pay for rainfall and production and where there are more neighbours, there is more competition."
In the current market, where prices are so strong with people having such a big appetite to purchase, smaller sized properties have proved to be the most transacted and in highest demand.
"Smaller size parcels are still digestible for mum and dad farmers and achievable for them to purchase, especially in some areas where land is really tightly held, they don't often get the chance to buy, so when it does come up they are usually quite keen to try and secure it."
While the highest prices per hectare are often paid for smaller blocks (less than 1000 hectares), Mr Cheetham said those sized properties won't attract corporate or overseas interest, as those buyers are often seeking 10,000ha plus land parcels.
He said there has been interest from corporate buyers and investors looking for quality properties with good improvements and the main attraction to the region is the scale that can be achieved.
"For investors looking to lease the land out after they buy it, they get a really strong lease return, so there is a lot of demand for purchasing and then leasing out," he said.
"Leasing values are really strong, which have been increasing at the same time as land values have.
"Some buyers are taking advantage of low interest rates and others are taking advantage of leasing to take on more land in one hit than what they would probably be able to through buying."
According to Mr Morris farmland in the Eastern Wheatbelt generates a return between five and 6pc of the sale value.
Having been in his current role for 11 years, Mr Morris said corporate activity had increased considerably in the past six to 10 years.
"Because WA, especially the Eastern Wheatbelt, is very affordable in the scheme of the world and Australian markets, we are seeing interest from all groups wanting to invest," he said.
With land values firm across the State, some buyers have turned to the Eastern Wheatbelt to expand operations, including family farmers.
"We are getting people from different regions - some from down south and western areas because they can't expand and they want to push out east, even if it is just to run livestock, it means they can plant more crop at their home farm," Mr Morris said.
He said the Eastern Wheatbelt also had appeal for Eastern States buyers.
"I had some farmers who sold in the east because prices had gone through the roof, so for the same rainfall and production they can buy something here that's between half and two thirds less of the price," he said.
"That's also why a lot of the corporates are coming here, because they are farming in the eastern States and know what they're having to pay for rainfall and different localities."
There has also been interest from pastoralists, particularly those in the Goldfields who can use a property (of at least 1000ha) in the Eastern Wheatbelt as a finishing block halfway between their station and the markets around Perth.
The Bruce Rock shire was reported to have the seen the biggest growth in values and to a lesser extent the Narembeen and Merredin shires.
Both agents said there was positive sentiment throughout the market.
"Thunderstorms and some good rainfalls have been received through chunks of the Eastern Wheatbelt this week which has boosted activity and confidence a bit more also," Mr Cheetham said.
