Farmland values across Victoria and southern NSW returned mixed fortunes last year, as seasonal conditions and fluctuating commodity prices varied regional demand in the market.

Price movements of Victorian farmland showed “a clear divergence” between regions that received average to above-average rainfall compared to those that felt the sting of drought conditions, according to new analysis published in the DAS Australian Rural Property Sales Report 2025.

The strongest performing region across Victoria was the Mallee, which saw 29 per cent growth in the median price per hectare last year, rising to $5725.

West Gippsland also returned double digit price growth, recording a median of $24,576 a hectare – a 10 per cent increase year-on-year.

Farmland values also increased in both the Goulburn and Glenelg Hopkins regions, recording price growth of 7.6 per cent and 2 per cent, to a record median price per hectare of $14,786 and $16,639 respectively. Elsewhere in the state, East Gippsland and the North East felt the farmland price pinch with values declining by 20 and 14.5 per cent respectively.

East Gippsland recorded a median price per hectare of $10,352, while values dipped to $14,826 in the North East.

The declines recorded in East Gippsland, the North East and Corangamite (6.7 per cent) were three of the five largest decreases in farmland values nationally.

CBRE Agribusiness director Matt Childs said a mix of unfavourable factors affected demand for farmland across Victoria last year.

“The volatility in the market was mostly driven by a tough start in the grazing sector with drought conditions, large feed costs, weaker livestock prices and higher interest rates,” Mr Childs said.

“Later in the year, we experienced a slight rebound as seasonal conditions improved and livestock prices improved. In contrast, certain cropping regions experienced a correction from previously unsustainable inflated land prices after several years of highly favourable conditions had reversed, all at the same time. Demand remains consistent but far more measured and price sensitive with buyers less willing to compromise on certain property characteristics.”

Across the border, farmland values in the NSW Riverina also declined by 11.4 per cent to a median price per hectare of $9815.

Farmland values in the Murray region remained stable, recording a 0.9 per cent dip to a median of $12,192 a hectare.