Australia’s farmland market reached a new milestone in 2025, with median values rising 2.8 per cent to $10,516/ha, according to Bendigo Bank Agribusiness’ 2026 Australian Farmland Values Report. A total of 6.3 million hectares were traded nationally, reflecting continued activity across the sector.
Despite the record result, growth has slowed significantly, marking the weakest annual increase in a 12-year run of consecutive gains. The report highlights a clear shift from the rapid, double-digit growth seen between 2018 and 2022 to a more measured and selective market.
Improved seasonal conditions, three RBA cash rate cuts and strong livestock prices supported confidence in the second half of the year. However, buyers are now more targeted in their approach, focusing on asset quality, water security and long-term returns.
Market conditions varied across the country. South Australia recorded growth of more than 20 per cent, largely driven by high-value lifestyle property sales. Western Australia (up 6.7 per cent), Queensland (5.8 per cent) and New South Wales (4.5 per cent) also posted gains, supported by scale and favourable conditions. In contrast, Victoria declined by 0.4 per cent amid dry conditions, while Tasmania saw a sharp 20.6 per cent drop due to limited supply and resulting volatility.
Looking ahead, the report forecasts continued growth levelling in 2026. A drier seasonal outlook, rising operating costs, and potential increases in interest rates are expected to further pressure farm margins and contribute to ongoing buyer caution.
