AS with much of Western Australia, the South Coast/Esperance region's rural land values have remained strong in the past few years and a recent sale suggested that price growth has continued.
The home block of a property known as Agnew's, Neridup, was purchased by a neighbouring farming family for $3.2 million.
Measuring 931 hectares, with 789ha being arable, the price equates to $3437 per hectare or $4055 per arable hectare.
According to Rural Bank's 2019 Australian Farmland Value Index, land values for the region averaged $3200/ha in 2018.
While selling agent Paul Thomason, Nutrien Harcourts, said the parcel wasn't necessarily a premium property, it "had good potential and represented very good value".
He said key features of the property were its good rainfall and soil types, gentle topography and being close to town.
It was the second time around for marketing the property, which Mr Thomason said generated "strong interest given the shortage of land to buy in the region".
"Esperance continues to enjoy strong enquiry on farming properties and I think that will continue," Mr Thomason said.
"I can't see farmland values going down - I think in the long-term, rural properties will continue to generate strong capital gain."
He said there was plenty of demand for farmland from farming families and corporates, with the latter seeking large scale properties in particular.
Most transactions in the region have been between farming families exchanging smaller parcels.
Mr Thomason said that while demand was most strong for cropping properties, grazing land was still sought-after given the prices being fetched for livestock in recent times.