The Australian farmland market reached a new national record of $10,516/ha in 2025, according to Bendigo Bank’s 2026 Australian Farmland Values Report.

However, the wider market is showing signs of cooling, with annual growth of just 2.8%, the slowest in 12 years. A subdued start to the year gave way to a more confident market in the second half, propelled by improved seasonal conditions, three RBA cash rate cuts, and strong livestock prices.

An increase in the median price of farmland occurred in four of Australia’s six states during 2025. South Australia recorded the strongest year-on-year growth of 20.4%. In comparison, the Western Australian market recorded growth of 6.7%. Queensland and New South Wales also recorded sustainable increases of 5.8% and 4.5% respectively, driven by the generally favourable seasonal conditions and strong livestock markets.

The lift in SA’s farmland market is a consequence of three consecutive years of drought, which has shifted the demand profile. A greater proportion of sales is now occurring in lifestyle regions close to Adelaide and the Fleurieu.

Research by Bendigo Bank noted that the Fleurieu region returned to growth in 2025 largely due to its proximity to Adelaide. As a result, the region’s median price per hectare lifted 15.1% to a record $25,874/ha. Farmland in the region remains the highest priced in South Australia. Smaller blocks remain in much higher demand due to lifestyle opportunities. Larger properties are taking longer to move in, with vendors holding out in the hope of receiving a similar per-hectare price to that of smaller lifestyle-based blocks.

Lifestyle buyers chasing a tree change are continuing to reshape South Australia’s rural property market, according to Paul Clifford, Director of Raine & Horne South Australia.

“The driver is affordability, with entry-level prices for lifestyle blocks deemed affordable at the moment,” noted Paul.

“Couples are selling homes in the city for around the $1.2 - $1.4 million mark, coming to the Hills or Fleurieu and spending $600,000 - $950,000 for small vacant allotments.

“They’re building a home and shedding and only upping their mortgages by $200,000 - $300,000, which they are prepared to do to improve their lifestyles.

“If the allotment has a basic home, they will pay up to $1.7 million,” he added.

Despite concerns about higher interest rates and wider economic pressures, Paul believes lifestyle-driven demand will continue, although the buyer pool may narrow.

“The buyer pool may become smaller if rates stay higher for longer, but the trickle effect from the city will remain,” he said.

“People are still achieving strong prices for homes in Adelaide because supply is still tight, and many are prepared to move further out for a simpler lifestyle.”

In contrast, larger rural holdings have become harder to sell. “Some vendors are still ambitious with pricing, but larger holdings are very price-sensitive at the moment,” Paul said.

“If they are not well priced, they are unlikely to move.”

For all your rural real estate needs in 2026, contact your local Raine & Horne Rural office today.