The upswing in the Western Australian agricultural sector will have a positive impact on the Perth property market according to Shane Kempton, CEO of Professionals.
Mr Kempton said that Western Australia had just recorded a record grain harvest which will pump $5 billion in to the local economy.
“Historically, when farmers have a good year they tend to invest in Perth property and I expect this trend to continue following this latest bumper harvest.
“It is expected that this year’s harvest will top 16 million tonnes which will be higher than the previous record of 15.86 million tonnes during the 2013-14 season.
“Everyone tends to focus on the downturn in the resources sector while overlooking the fact that the agriculture sector is now performing very strongly.
“The agricultural sector is now recording a major upswing and this will be supported over the long term by investment and demand for our food products from Asia.
“Overall, national production of the agricultural sector this year is expected to exceed $60 billion for the first time with record beef, lamb and grain prices combined with a turn around in the wool market contributing to a major turnaround in the fortunes of the agricultural sector.
“The Perth property market is poised to take advantage of the boom in agriculture because it currently has some of the most affordable real estate in Australia.
“For example, the median house price in Perth is now less than half that of Sydney and much lower than Melbourne.
“Farmers who traditionally invest in real estate after bumper harvests appreciate that the Perth property market is now at the bottom of its current property cycle and that prices will only rise over the coming years.
“Not only could we see farmers throughout WA investing in the Perth property market during the coming year, but also farmers in other regional of Australia,” he said.
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