THE YEAR 2024 was a standout in Western Australia for specialist real estate company LAWD, with circa $175 million worth of property sales contracted for the calendar year.
It kicked-off very well in this State for LAWD, with more than $80m worth of contracted sales in the first three months of the year and record high prices per hectare in many districts in the process.
Varley Farms, north of Varley, achieved circa $50m plus; Rovadam Farms at Bremer Bay was sold for a district record $12.2m; followed by Seven Hills at Wellstead for $6.5m; and Shalimar at Qualeup for $5.26m.
Shooters Hill, at Borden, was sold late in 2023 and settled in early 2024 for $35m.
“We achieved some really good values per hectare on these properties, some at record levels for their area,” said LAWD director Simon Wilkinson.
He said the majority of properties were all sold to locals and other parties with WA-based interests.
Mr Wilkinson said the best sales were driven by properties that presented well and had good data underpinning their historic and best usage.
He said properties in 2024 often presented as well, if not better, in the early months of the calendar year similar to the spring selling season
“These properties each had full histories of their operations,” Mr Wilkinson said.
“Buyers wanted information about soil types, grain yields, soil amelioration tactics used and nutrient/fertiliser treatments.
“They carefully analysed the investment and capital needed to put back in to the asset to continue to improve its productivity and profits, adding that post-harvest, buyers were often better suited to purchasing.”
Mr Wilkinson said generally during 2024 there was strong demand for farmland from local buyers, institutional and family offices “On most holdings, they (local interests) outstripped the corporates, who showed definite interest, particularly in the Bremer Bay and Borden properties,” he said.
After the flying start to the year, Mr Wilkinson said there was a noticeable drop in the pace of sales for the remainder of 2024.
“There was some apprehension and scepticism based on poor outcomes from the 2023 cropping season in some areas, increasing input costs, high machinery values and high costs of labour,” he said.
“Interest rates didn’t really move during the year, when many people were looking for a respite and a fall in rates.
“There was some continued apprehension surrounding the US election and the impact around the globe of Donald Trump’s mooted tariff measures on China.”
Overall, Mr Wilkinson said 2024 was marked by a solid year and genuine buyers coming in who were prepared to meet the market based on property background information and appetite for growth.
He said LAWD had experienced a growth in listings, but the growth rate of property values had slowed compared to the previous year.
“There was at least 15-25 per cent growth year on year in 2021, 2022 and 2023 and there was some expectation from sellers that would continue in 2024,” Mr Wilkinson said.
“But, based on the above factors, the market levelled out and found where it needed to be.
“At the same time, key assets will always be in high demand, along with those farms that have had significant investment into them.”
Mr Wilkinson said there were good results for properties offered at current values, related to annual average rainfall and soil type.
“But some doubt did creep into the mixed farming market given the uncertainty surrounding the pending cessation of live sheep exports, and abattoir capacity both within cattle and sheep” he said.
LAWD’s Brunswick office, with Don and Lorelle Fry at the helm, enjoyed success across a diverse portfolio of properties, having contracted and settled in excess of $66m in 2024.
Cooladerra, at Kojonup, was sold for $9m; Wanjarrah, at Frankland River, for $14.5M; and The Glen, at Carrolup, for $7.7m (contracted in late 2023 and settled in early 2024).
“Those that sold were properties that were presented well with values at current market levels,” Mr Fry said.
Mr Fry said the South West, lower South West and Great Southern regions in general, had performed exceptionally well in 2024, with several multi-generational vendors entrusting LAWD to assist in the divestment of their long-held properties.
“This was market-driven by a combination of local mixed farmers seeking more land to expand and new entrants coming into the market,” he said.
“South West agricultural land is a safe asset class in which to invest, often providing lifestyle benefits matched with additional income.”
On the valuations side of the business, Mr Wilkinson said LAWD had experienced values for agricultural land had generally levelled out, compared to the highs of the previous years.
The company is looking forward to welcoming an additional valuer to the team in WA in the first quarter of 2025.
Looking ahead to 2025, Mr Wilkinson said LAWD had similar listings and value expectations as throughout 2024.
“Harvest yields have been mostly good across many areas of WA, which was surprising given a marked lack of rainfall in some areas,” Mr Wilkinson said.
“But at crucial times of crop development, adequate rainfall was received.
“There was not much frost to report and I think farmers are going into 2025 with a stronger degree of confidence than they were 12 months ago.
“When they sit down to do their budgets in early 2025, there will be definite upside from 12 months ago along with quite strong balance sheets.
“Input prices have come off a little and livestock markets seem to be finding some level of comfort.
“They will, of course, be looking for good rain.”
Mr Wilkinson said sellers next year would need to be realistic and accept the market’s new level.
“There is still much interest around in property from corporates and there is good appetite from family farming enterprises,” he said.
