EASTERN State investor demand for Western Australian properties is still strong, say Western Australian real estate leaders.
The attractiveness of WA farmland ranges from good value for money to the efficiency of WA farming systems.
Elders Real Estate senior rural real estate executive Simon Cheetham said there was plenty of interest from Eastern States' buyers, which included family farmers, private investors and corporates.
"They definitely appreciate the WA farming systems and how they can fit into the land they already own," Mr Cheetham said.
"They are attracted by what they perceive as good value for money when looking at our production systems.
"They are liking the scale we have in WA, often the CBH network is quoted by graingrowers as being superior to what they are used to in their home States."
While interstate buyers have always been a factor in WA markets, as land has become scarcer buyers have widened their search to interstate properties and properties they might not usually buy.
Ray White director Hugh Ness said WA's farmland was massively undervalued compared to the Eastern States, which was attracting a lot of buyers.
"It doesn't flood over here, there is a bit more assurity over here in terms of returns," Mr Ness said.
"There is high-cost, high-value farming land close to the city and people are looking to reinvest their money close to the city for long-term land banking.
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"It's because we are so much cheaper than the Eastern States."
This demand doesn't just apply to farmland, but also properties close to Perth's central business district.
Property Yields real estate agent Brett Nazzari believes rental properties are in such high demand at the moment that Eastern State buyers will be attracted by the returns.
"People must be looking and going 'you know what?'," Mr Nazzari said.
"I can get a lot of bang for my buck in Perth.
"I can get a property for a much cheaper price than I have to pay in the east, there's a huge demand for rentals and I'm going to get a good return'."
However, one of the problems Eastern State buyers struggle with is timeliness and being able to see a property before it is sold.
"Now that travel has freed up, often they are interested in properties and keen to buy them, but they sell before they are ready to make a move," Mr Cheetham said.
"That's probably the biggest hurdle they have to jump over at the moment, is finding the farm, getting to look at it early enough and getting their offer in quick enough for it to be accepted."
Eastern States' buyers can't be solely to blame for rising property prices, as demand is being driven by all buyer types, ranging from investors to local farmers.
"Prices are getting driven up because family farmers are in a strong financial position and really eager to buy more," Mr Cheetham said.
"We've got a lot of corporate farmer entities now that are still wanting to expand.
"Investors are seeing agriculture as a safe investment, so they are still looking to buy.
"And other Eastern States' buyers are in that mix as well."
