Annual Water Auction 2016
A capacity crowd, estimated to be in excess of 300 people, attended the third annual water auction at the Riverina Field Days, hosted by leading Riverina based Water Broker and Australian Water Brokers Association President, Tom Wilks.
The introduction of online bidding, using the Auctions Plus platform, proved surprisingly popular, as this platform is commonly associated with online livestock sales. Over 6,000 megalitres of water was sold to local and interstate buyers, sourced from the Murrumbidgee, Murray and Lachlan Valleys.
“We had a great turn out on the day. With online and phone bidding, bidder registrations exceeded last year’s event and the pavilion was overflowing with people” Mr Wilks says.
“The very strong demand for permanent general security, high security and supplementary water entitlements resulted in prices exceeding vendors’ expectations. However, recent widespread soaking rains dampened the prices for temporary water. But with little runoff, it may be wise for irrigators to top up their carryover.” he says.
With water growing in popularity in recent years as an investment option and with phone and online bidding proving extremely popular, interest came from a range of interstate commercial investors. In addition to irrigators, the auction was well attended by local agents, valuers and the wider community who were eager to find out what water is worth, and just how water is traded.
Following the trend from previous years, water parcels that were passed in at auction are now receiving a lot of enquiry.
“The water auction has generated a lot of interest, both during the Riverina Field Days and after, and we expect to have the majority of the passed in water parcels sold by the end of the week” Mr Wilks said.
With the 2015/16 season coming to a close, Mr Wilks encourages anyone interested in purchasing water before the close of season to contact the Wilks Water team.
“We currently have very strong demand for permanent water, with limited supply. So those that are selling, are achieving excellent prices.” Mr Wilks says.
All lots of water sold are in the Murrumbidgee Valley and sold without 2016/17 allocation unless stated otherwise
PERMANENT HIGH SECURITY WATER ENTITLEMENTS
6 Megalitres C6 (Residential) SOLD @ $3350/ML
10 Megalitres SOLD @ $3450/ML
(Included Delivery Entitlements)
26 Megalitres SOLD @ $3550/ML
119 Megalitres SOLD @ $3600/ML
25 Megalitres SOLD after auction @ $3525/ML (Included Delivery Entitlements)
120 Megalitres SOLD after auction @ $3600/ML
80 Megalitres SOLD after auction @ $3600/ML
30 Megalitres SOLD after auction @ $3800/ML (Included 2016/2017 season allocation)
We have a buyers for High Security Water Entitlements at $3600 per megalitre for up to 600 megalitres.
PERMANENT GENERAL SECURITY WATER ENTITLEMENTS
47 Megalitres SOLD @ $1500/ML
180 Megalitres SOLD @ $1475/ML
180 Megalitres SOLD @ $1475/ML
50 Megalitres UNDER OFFER @ $1500/ML
140 Megalitres NSW Murray SOLD after auction @ $1150/ML
30 Megalitres Tarcutta Creek SOLD after auction @ $260/ML
Only a very limited amount of General Security Water Entitlements were offered for sale on auction day reflecting the scarcity of supply. Check the Wilks Water website to see what is currently available.
666 Megalitres SOLD @ $10/ML
2700 megalitres still available – call for details.
PERMANENT SUPPLEMENTARY WATER ENTITLEMENTS
100 Megalitres SOLD @ $500/ML
25 Megalitres SOLD @ $500/ML
88 megalitres Sold after auction @ $500/ML
Very strong demand at $500/ML – more wanted in small or large lots.
TEMPORARY WATER ALLOCATIONS
The recent general rainfall saw limited interest in current season’s allocation. Prices ranged from $180 to $190 per megalitre. This one off rain event hasn’t been repeated to date and it may be prudent for irrigators to consider topping up their carry over just in case this fantastic autumn break does not meet expectations.
FORWARD WATER ALLOCATIONS
1300 Megalitres SOLD @ $235/ML – Murrumbidgee Valley
400 Megalitres SOLD @ up to $265/ML – NSW Murray Valley
More Forward Water is available for sale.
CARRYOVER CAPACITY – PARKING (Groundwater)
500 megalitres LMGW Zone 3 SOLD @ $10/ML
An additional 1000 megalitres of space is still for sale.
CARRYOVER CAPACITY – PARKING (Surface Water)
None was offered for sale at the Annual Water Auction but I do have demand. Please call if you have carry over capacity you wish to sell.
The 2016/17 season closes soon. River Trades - 31 May. MIA - 13th June
WANTED - Permanent High and General Security water!
Contact the Wilks Water team on 0269 318 522 or email email@example.com