Bendigo Bank Agribusiness: Australian farmland values hit record high

Transactions rebound with moderate growth tipped to continue in 2025

Australian farmland values have now recorded eleven years of unbroken growth with the national median price rising to a record level in 2024 and growth observed in median prices across five of the six states during 2024. The national median price per hectare increased by 6.9 per cent to a record $10,231/ha with a total of 4.7 million hectares of land traded, representing an area larger in size than Denmark.

The number of farmland sales in Australia rose 5.8 per cent to 7,154 with the combined value of transactions totalling $14.9 billion. The rebound followed an 18.2 per cent decline in sales in 2023 driven almost exclusively by the eastern states, yet was still the third lowest number of national farmland sales in the past three decades.

Seven of the top 10 growth regions in 2024 were in Queensland or Western Australia with pace of growth remaining constrained, having plateaued since 2023, with many sellers maintaining high price expectations and consequently, properties sitting on the market for extended periods.

Bendigo Bank Agribusiness Senior Manager Industry Affairs, Neil Burgess said: “Australian farmland values steadied during 2024, following a slowdown in growth observed throughout 2023, and while this was the 11th consecutive year of growth, it represents a notable cooling in the rate of annual increases compared to 2018-2022 when the median price growth more than doubled.

“The past decade has seen the national median price for Australian farmland triple, rising by 201 per cent at a compound annual growth rate (CAGR) of 11.6 per cent with a 20-year CAGR of 8.6 per cent.

“The underlying drivers of the Australian farmland market were more varied in 2024 with elevated interest rates a constant and with a greater mix of seasonal conditions. Favourable weather in NSW and Queensland has been in stark contrast to the significant lack of rain experienced in southern regions, which has been reflected in farmland prices.

“The sharp rebound in livestock prices across late 2023 and into 2024 drove a substantial improvement in buyer sentiment, particularly across New South Wales and Queensland, with demand for farmland in grazing regions surging after an underwhelming performance throughout 2023.

“Looking to the remainder of the year, anticipated interest rate cuts while supportive, are unlikely to drive widespread resurgence in demand. Farmland availability remains tight and mixed seasonal conditions across the country, combined with ongoing uncertainty in global trade and commodity markets are expected to limit the prospect of substantial growth in 2025, so our outlook is for continuing moderate growth in farmland values across 2025,” Mr Burgess concluded.

Australian farmland values

Australia’s most valuable farmland

Victoria – South and West Gippsland $29,335/ha
State median: $14,848/ha

Tasmania – Northwest $27,019/ha
State median: $23,202/ha

South Australia – Adelaide and Fleurieu $22,488/ha
State median: $7,825/ha

Western Australia – Southwest $17,236/ha 
State median: $6,799/ha

Queensland – Southeast $15,376/ha

See the full Bendigo Bank Agribusiness Farmland Values Report and research and analysis into commodities, business performance and topical agricultural issues: Agriculture insights