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Published on May 16th, 2013

Rural market expected to pick up

The rural property market is expected to pick up after the seeding period ends, according to real estate operations manager for Elders WA Phil Melville.

For the last few weeks the rural real estate market has been subdued as farmers have been busy preparing for the seeding period. However, after once seeding for 2013-14 comes to a finish in the upcoming weeks sales are expected to increase as farmers prepare to place their properties on the market for sale.

One of the contributors to the rise in seller activity will be weather patterns from earlier this year, which left many properties dry. This in turn has had an effect on soil moisture, which may further influence how much wheat farmers will be able to produce.

"Internationals and corporate buyers are active, however those interested in grain properties have eased off as the window of opportunity has closed with the commencement of seeding and farmers have committed to another season," said Mr Melville.

"Business confidence is low and the issue of poor liquidity in some regions will see agents busy immediately after seeding, putting together options for their clients to sell."

The introduction of many properties into the real estate market immediately after the seeding period may have an effect on prices, so sellers may benefit from discussing strategy with a real estate agent who specialises in big or small farm properties.

Commenting on the weather patterns from earlier this year, Australian Bureau of Agriculture and Resource Economics and Sciences executive director Paul Morris stated: "The drier and warmer conditions in late spring and early summer have resulted in many producers not fully realising their planting intentions for grain sorghum and reduced yield prospects."

However, increased rainfall that is expected for most of the country in the upcoming months should help to give many sections of land a good sprinkling of moisture to bring life into the soil.


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