water markets

Fears about upcoming dry conditions could be driving water price spike

3 August 2018

Andrew Miller, Stock and Land
3 August 2018

High temporary water prices likely to be temporary, says leading expert.

But although the cost of temporary water has climbed to around $350/megalitre, industry experts and brokers said the price spike was likely to be temporary.

Marsden Jacob principal Simo Tervonen said demand was still exceeding supply, with buyers who could still see an upside in the market.

“Typically entitlement purchases are done based on longer-term strategies, current very high temporary water prices may also encourage participants to engage with the market,” Mr Tervonen said.

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