Bendigo Bank Agribusiness: Australian farmland values hit new record, but growth cools to 12-year low

However, the market is now showing clear signs of cooling, with the annual growth rate the slowest in a 12-year run of consecutive growth.

The Report indicates a significant shift in the market from the double-digit growth seen between 2018 and 2022 and heralds a landscape where buyers are becoming increasingly selective, said Bendigo Bank Agribusiness Senior Manager Industry Insights, Eliza Redfern.

“A subdued start to the year gave way to a more confident market in the second half driven by improved seasonal conditions, three RBA cash rate cuts, and strong livestock prices,” Ms Redfern said.

“However, widespread, uniform growth has fallen, and buyers are now more discerning, prioritising asset quality, water security, and long-term returns,” she said.

A fragmented market

Beneath the national figures, the Report highlights a significant variance in regional conditions, with performance varying greatly from state to state.

“South Australia boasted notable growth, with prices up more than 20 per cent year on year, however this was largely driven by a lift in the volume of sales in several high value ‘lifestyle’ areas,” Ms Redfern said.

“In contrast, more modest growth in Queensland, up 5.8 per cent, and New South Wales, up 4.5 per cent, was fuelled by supportive market conditions,” she said.

“A focus on scale and selective purchasing underpinned increased prices in Western Australia which were up 6.7 per cent.”

However, farmland values were less supported across southeast Australia, Ms Redfern said.

“Victoria’s performance, down -0.4 per cent, was subdued by dry conditions and cautious buying,” Ms Redfern said.

“The record-low scarcity of available land in Tasmania created price volatility, with the market falling 20.6 per cent last year,” she said.

Farmland values outlook

The Report anticipates growth in the Australian farmland market will continue to level off in 2026.

“Looking ahead, farmers are facing a more challenging growth environment,” Ms Redfern said.

“A dry seasonal outlook and higher operational costs are putting pressure on margins. With the added prospect of rising interest rates impacting the cost of borrowing, we expect to see continued buyer caution,” she said.

Snapshot: Australian farmland values

Snapshot: Australia’s most valuable farmland regions

• See the full Bendigo Bank Agribusiness 2026 Australian Farmland Values Report and other research at: https://www.bendigobank.com.au/business/industries/agribusiness/agriculture-insights/#deepdive