Australia's farmland market hit a new national record median price of AU$10,516 per hectare in 2025, but is now exhibiting clear signs of a slowdown, Bendigo Bank said in a Tuesday report.
The market climbed 2.8% last year, which was the slowest annual growth rate in 12 straight years of expansion, down from the double-digit growth registered between 2018 and 2022, according to the report.
"A subdued start to [2025] gave way to a more confident market in the second half driven by improved seasonal conditions, three [Reserve Bank of Australia] cash rate cuts, and strong livestock prices," said Eliza Redfern, senior manager, industry insights at Bendigo Bank Agribusiness.
"However, widespread, uniform growth has fallen, and buyers are now more discerning, prioritizing asset quality, water security, and long-term returns," Redfern added.
The report found varying performance across states, with prices rising over 20% in South Australia and nearly 6% in Queensland, but falling 0.4% in Victoria and almost 21% in Tasmania.
Bendigo Bank expects the Australian farmland market growth to continue to level off in the current year amid a more challenging environment for farmers.