SENTIMENT across the rural property market in early 2026 remains cautiously optimistic, with buyers and sellers responding to improved seasonal conditions and greater price stability.

While strong demand persists in productive, well‑located areas, other regions can expect a more cautious approach as operators weigh input costs, climate risk and financing conditions.

In this week’s property review, four industry specialists give their take on what lies ahead.

Tom Russo, the divisional CEO at Elders Real Estate anticipates the grazing and cropping market will remain subdued in 2026 with little price growth in real terms.

He identified pockets of outperformance where quality, reliability and competitive dynamics will drive capital appreciation.

“High rainfall grazing and dairy regions (Western District, Gippsland, parts of southern New South Wales and Tasmania) where livestock prices are solid and productivity is high and mixed farming belts like parts of the NSW Central West and South Australia’s better cropping zones.”

Tom Russo

Mr Russo believes grazing regions with strong cattle and sheep prices and decent moisture should see firmer demand and maybe a bit of catch-up, after sitting on their hands in 2024–25.

In terms of investment, Mr Russo anticipates a significant weight of offshore capital.

“It will come primarily from North American investors looking to be deployed in Australian agriculture. They have a strong focus on quality cropping aggregations of scale, together with permanent tree crops.”

Mr Russo said long entrenched large operators will continue to have a strong strategic advantage in the market.

“With banked capital appreciation at extreme rates in recent years and balance sheets with significant fire power, they can continue to grow while maintaining a per hectare capital base at a significant discount to current market prices on an averaged-out basis.”

“They will continue to be strong in the market as they look to acquire strategic holdings and realise operational efficiencies,” explained Mr Russo.

He said improvement livestock and wool prices, together with more favourable seasonal conditions, are likely to improve confidence and motivate some potential sellers to offer their properties this year.

“The plateau in capital growth rates is likely to necessitate some fund managers to review their portfolios and consider whether now is the time to lock in gains and return capital to investors or reshape their portfolios.”

Overall, Mr Russo believes property values should consolidate around current values unless there is a breakout in commodity prices or material movement (up or down) in interest rates.

Rawdon Briggs, Colliers Agribusiness

Head of rural and agribusiness at Colliers, Rawdon Briggs predicts grazing enterprises in all regions will continue to perform well, with strong cattle and fat lamb prices, as well as several feedlot transactions confirming this trend.

While irrigated cropping assets remain highly sought after, Mr Briggs said southern Murray Darling Basin horticultural assets with high labor and water costs may face challenges.

“These factors will also impact regions traditionally targeted for conversion as the model only proves successful when the manager has a strong track record of delivery both on time and on budget, and is supported by the right mix of high‑performing cultivars with proven national consumer demand.”

Rawdon Briggs Colliers

Mr Briggs said premium irrigated and grazing properties will continue to attract strong competition.

“Especially those with secure water entitlements and lower cost of delivery to targeted fields. Conversely, second and third tier properties across all sub-sectors of agriculture may experience more selective bidding volumes and longer time in the market.”

“There is strong banking and farmer confidence in most agricultural sectors given modest interest rates, favourable exchange rates (below 75c), and positive seasonal conditions. The outlook remains positive for the medium term when compared to other property sectors,” he said.

Mr Briggs said Australian agriculture continues to demonstrate resilience and adaptability in all cycles, and over the past 30 years has continued to outperform all other sectors of property in both Australia and the United States.

“As we move into 2026, the sector stands to benefit from global demand changes arising from international trade arrangements, with mid-level trading partners benefitting so long as they remain nimble.”

He said finance availability from the big five banks and non-bank lending conditions are positive.

“The market is expected to remain robust for A-class agribusiness properties. While consolidation opportunities for farmer-to-farmer families are increasing in the $10 million to $60 million range, only significant family groups and international investors are actively competing for assets above the $60 million mark.”

Danny Thomas, LAWD

Danny Thomas

On the back of last year’s recovery and consolidation, LAWD senior director Danny Thomas predicts property prices will bump this year.

“While it remains tough in some market segments, Australia is in the midst of a red meat boom. Cattle and lamb prices are going exceptionally well and that will heavily influence this year’s property market.”

Mr Thomas said the smart money will act early and by the end of the year, property prices will have jumped.

“People will be surprised at how quickly properties, currently available in the market, will be taken up. Once that happens, potential buyers will be competing strongly for a limited number of assets.”

Sam Triggs, Inglis Rural Property

Inglis Rural Property chief executive Sam Triggs expects renewed investment in rural land values in 2026 from both institutional investors and private operators, particularly following the correction and stabilisation seen over the past 12 months.

“Although the market remains price-sensitive, our office is working with several capitalised clients looking to buy. The new year market has already been very active but having said that, buyers are patient and selective. The urgency or ‘fear of missing out’ which was seen during the previous three to four years, has dropped somewhat.”

“The market is rewarding vendors who have invested capital in infrastructure and soils. The burden of rising input costs and ‘cost of time’ to implement development programs is in the front of buyers’ minds,” explained Mr Triggs.

Sam Triggs

Mr Triggs believes the 2026 market will continue to be competitive and display healthy liquidity but cautioned vendors to adopt sensible pricing strategies.

“Overpricing at the outset of a campaign can be detrimental – akin to trying to catch a falling knife – potentially prolonging the sale process significantly. The auction selling method was a relatively good strategy in spring 2025 to flush buyers out and generate urgency for properties in the sub $10m bracket. While the expression of interest format was best for more complex transactions in the $15m to $50m bracket.”

According to Mr Triggs, early indicators in 2026, including an uptick in enquiry levels, suggest a good appetite from buyers and possibly some growth in values in the year ahead provided seasonal conditions are favourable, the Australian dollar doesn’t see a big jump and commodity prices hold or improve.