Western Australia is still considered, in some regions, to provide good value compared to other states and territories, according to the latest report from Herron Todd White (HTW).
WA has cattle stations in the northern regions, vineyards in the south-west, and other agricultural, horticultural, silvicultural, and aquaculture land uses, according to the report.
In the last couple of decades, rural lifestyle purchasers who push prices up for commercial returns influenced the areas surrounding Perth metro, south-west, and great southern part, according to the report.
The Wheatbelt regions offer lands with lower values. However, these areas have medium to low rainfall and more susceptible to drought conditions, according to HTW.
“We did a quick search and for $460,000 you can buy 1,259 hectares or 949 arable hectares at Bencubbin in the eastern Wheatbelt. For a purchaser looking to get into agriculture, this is an affordable level and scale with residential improvements. The asking price equates to $485 per arable hectare which outside of pastoral regions would be considered one of the lowest price points in the country,” HTW said.
Current livestock and machinery prices will make stocking and cropping property straight away hard and will need additional investment. However, the use of contractors for cropping or building a mob of sheep over time can limit the required initial capital, according to the report.
Several good seasons have seen an increased demand for cropping and grazing properties, with values rising accordingly across some Wheatbelt regions, the report said.
However, the regions have been subject to drought conditions and therefore subject to a higher risk of not providing a return, with capital gains likely lower, according to the report.
“We do however note that the continuous development of agricultural technology and plant varieties is resulting in (a) potential increase in yields and returns and these developments could have a significant impact on the production potential of the lower rainfall areas which has the potential to flow on to capital gains,” HTW said.
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