Elders business strong during uncertainty

But looking back on the past year and the influence of the COVID-19 pandemic on sales in recent months, has highlighted interesting activity within the State property sectors and the Elders business.

Reflecting on the previous year, the company's zone real estate manager - west, Drew Cary, said 2019 had been a very strong year for the business.

"Our rural sector had a very strong buying and selling season," Mr Cary said.

"We experienced a very good residential market, with a bit of a comeback after a number of years of year-on-year downturn."

While the lifestyle market had continued to be soft during 2019, Mr Cary said it was interesting that the sector had been the "most exciting" throughout COVID-19.

"Of all the things we expected to happen during the pandemic, we didn't expect that, but in hindsight we can justify why," he said.

Prior to COVID-19 the lifestyle market had started to show signs of recovery which Mr Cary believed the pandemic had accelerated.

"So what was previously a depressed market has now become quite a hotspot again, although it hasn't reached the hay day it had about three years ago but it has become a lot stronger," he said.

Areas within 50 kilometres of Perth and also further out in the Wheatbelt, where properties where buyers could purchase a few hectares and a house for about $300,000, have been of strong interest.

The buyer profile for these types of listings includes city/town-based people, of which some have a rural background, others have business ventures they want to pursue or expand and some like the idea of working from home in the country.

When the fallout of the coronavirus began to show in Australia, Mr Cary expected the impact to be quite severe to most sectors of real estate, with the exception of the rural market.

However, as a few months have passed and restrictions have been eased throughout WA, he said the Elders real estate business had performed very well, especially considering the dire forecast.

"Going into COVID-19, there were predictions of quite severe outcomes and the reality hasn't reflected that prediction," he said.

"We thought the residential market was going to be the hardest hit - there were claims of 30-50 per cent price reductions from some economists, whereas the reality is it's probably going to be more like 5pc, at the most maybe 10pc over the next six months and I can't even see that happening.

"The Perth and Bunbury residential markets have remained quite flat and the markets in most regional towns have stayed where they were."

While property values have remained relatively stable, the number of listings has dried up compared to the same time last year, which Mr Cary characterised as "the most dire part" of COVID-19 for the market, although "interesting".

"The number of listings coming onto the market have dropped by about half, so sellers are hesitant to enter or re-enter the marketplace," he said.

"Of the reduction in sales that we have seen, about 90pc of them were probably as a result of banking reconsideration - so someone losing a job, leaving a job, or put on JobKeeper, which are when circumstances have changed for the buyer which allowed the bank to pull finance which then collapsed the deal.

"So it wasn't that COVID-19 caused buyers to be more cautious, it's more because their finance was tripped up for some reason, so it has been more the knock-on effects of COVID-19 that pulled the deals."

Mr Cary also reported increased activity within the first home buyer market of residential properties, which was already a very strong buyer demographic.

Given the pandemic reached Australia at a time when rural sales had either settled/to be settled soon or gone quiet until the next cycle began in spring, it was perhaps the most ideal time for such a crisis to occur for the sector to have limited impact.

Elders senior real estate executive - WA rural, Simon Cheetham, said the rural property market hadn't been affected a great deal by COVID-19.

"There was a month-long period where inquiry dropped off however our settled sales remained on track and enquiries are considered strong at the moment given the time of the year," Mr Cheetham said.

"All the Elders agents I have been speaking to are focusing on getting more listings for the coming season because they have got buyers showing interest.

"The barley and wool markets have been real discussion points for farmers, however agriculture is still fortunate to be seen as one of the bright lights within the Australian economy."

With demand very strong for rural properties, Mr Cheetham said the climate was still a seller's market for much of the State.

"Large parts of the State haven't seen much land available for some time with plenty of interested buyers so I am anticipating that that will continue," he said.

At this time of year pastoral listings tend to be advertised, with Jubilee Downs in the Kimberley making news headlines recently, which is listed by Elders' Greg Smith.

Mr Cary said there is some prominent station country being offered on and off the market, which has received very strong interest.

"We expect to sell between $30-$100 million of station country this year and given the level of interest from our buyers, demand still appears to outstrip supply," he said.

- Enjoying the role:

While the past few months have been uncharted territory for Mr Cheetham (as with the rest of the team) navigating the rural side of the business through COVID-19, he has also managed to nestle into his new role with Elders.

Rather than working mostly solo as he did for several years with Nutrien Harcourts (then Landmark Harcourts), this position has seen Mr Cheetham take on more corporate and leadership responsibilities, which he has found "challenging but enjoyable".

"I have really enjoyed the role and working with the Elders team of rural salespeople," he said.

"It's a really positive culture and a strong brand that people are proud to be associated with.

"Now travel restrictions have eased, it has been great to be able to spend time on the road meeting with Elders employees and clients."

- Humbled by prestigious award:

As part of the 2019 Elders WA awards, Narrogin-based sales representative Jeff Douglas was presented with a new award of exceptional recognition.

The inaugural Masters award is a rare distinction across the whole Elders real estate business of Australia.

Mr Douglas was one of only six recipients and the only one from WA.

With a career in real estate of almost 30 years with numerous achievements and highlights, he said this award was very special.

But he was quick to refrain from too much praise, claiming the achievement was a result of the support from his clients.

"People appreciate what I do and I am grateful for them," Mr Douglas said.

"I need good properties to sell, sellers to allow me to do that and buyers to purchase them, so without them I couldn't do what I love.

"I love what I do and it has been a co-ordination of the work, the people and being in the country.

"I feel that this award is recognition of my clients being happy working with me."

Mr Douglas said he will still go about his work as normal and was looking forward to the coming selling/buying season commencing in spring.

The Masters awards went to the top 10pc of agents based on settled gross commission.

Also, being a national award means Mr Douglas was a top achiever among agents who work in completely different markets and therefore, on different playing fields.

Many agricultural properties in the other States tend to sell for higher values as they are often of different commodities, country, size and capacity to that of WA.

So for Mr Douglas to be recognised on the national stage with such an award was an extraordinary achievement.