Western Australia’s farmland market experienced notable growth in 2025, particularly in regions with higher rainfall and robust broadacre cropping potential. Reports from the Real Estate Institute of Western Australia (REIWA) indicate that both buyers and sellers generally felt they received fair value for their properties during the year.
According to Mark Murray, chairman of the REIWA Rural Committee, weather conditions significantly influenced the market dynamics. “After a season start that could have been better, conditions across most of the State during winter and spring were very conducive to cropping and grazing,” he stated. The favorable weather led to impressive crop yields and solid prices for livestock, notably for sheep and cattle, which boosted farmer confidence.
As the year began, many farmers sought to expand their land holdings. Murray noted an uptick in “over-the-fence sales and sales of add-on blocks,” reflecting a strong desire to scale operations. However, as the year progressed, the rural real estate market slowed as attention shifted towards harvesting crops.
The anticipated spring surge in market activity did occur, though stock levels remained low, consistent with trends over the past six years. “Competition was strong for a limited amount of properties that came onto the market, so values held up well,” Murray explained.
With the harvest concluding, the focus is shifting back to property acquisitions. Farmers looking to retire or exit the industry are preparing their holdings for sale, which may influence market dynamics in the near future. “Overall, 2025 produced win-win scenarios for buyers and sellers,” Murray emphasized. “People who wanted to step out of land ownership got good recompense, and those seeking to buy—especially those expanding their holdings for scale—did so with confidence in the market.”
Looking ahead to 2026, Murray expressed optimism that farmers would remain confident in their next land purchases. “This is good news for everyone involved, but I think there will be considered purchases made,” he cautioned. Buyers are expected to adhere to reasonable valuations, especially given the indications of no immediate interest rate cuts.
Additionally, the REIWA Rural Committee is set to advocate for measures aimed at alleviating regulatory pressures faced by farmers in Western Australia. Murray highlighted that water rights would be a significant focus in the upcoming year. “We on the REIWA Rural Committee expect water legislation to be a top government priority this year,” he remarked.
The agriculture sector will need to ensure its interests are well-represented in any new regulatory framework. Private property rights are also anticipated to be a pressing issue, with the REIWA Rural Committee committed to monitoring developments in this area.
Overall, the positive trends in the Western Australian farmland market indicate robust potential for growth and stability as the agricultural landscape evolves in the coming years.
