Farmland has increased in value more than any other Australian property type over the last two decades, a report has found[i].

Farming has emerged as the runaway winner in the Australian Property Institute’s first valuation report, fuelled by booming commodity prices, ideal weather, and a stretch of low interest rates.

Agriculture values have risen an average of 256% over the last 20 years, compared to 154% for housing, 164% for industrial property (such as warehouses and factories) and 143% for commercial property (such as offices and shops). On an annual basis, agriculture rose 12.8%. 

Over the past 20 years, Tasmanian farmland values have skyrocketed 689%, with Victoria up 362% and Queensland close behind at 332%.

According to the Australian Property Institute (API), Wimmera, in western Victoria, is Australia's Number 1 performing property region, with an average price increase of 802% over 20 years, underpinned by renewable energy projects. The area has historically been dependent on grain and sheep industries. 

Table 1: Farming - state by state increase in prices over 20 years (2004-2023)  

Travis Wentriro, Regional & Rural Network Manager at Raine & Horne, said agricultural land’s top national performance comes as no surprise.

“A combination of low interest rates and high commodity prices have helped push values sharply higher over the past 20 years.

“These factors have boosted buyer confidence and driven up demand for farmland, while the trend of neighbouring farmers buying up adjacent land has also pushed prices higher, particularly for properties close to existing operations.”

If you’re considering buying or selling rural property in 2025, contact your local Raine & Horne Rural office for expert advice and more information.
 
[i] https://www.api.org.au/wp-content/uploads/2025/05/MEDIA-RELEASE-API-publishes-Property-Research-Whitepaper-FINAL-230525.pdf