THE typical spring surge in rural property listings is delivering in bucket-loads this year. In this week’s property review, three specialists in Queensland, NSW and Victoria explain the factors driving the current 2025 market.

Rawdon Briggs is the head of transactions at Colliers Agribusiness, based in Queensland. Last year he flagged that the 2024 spring selling season would be the highest volume of on-market listings in a decade.

This week, he said the 2025 spring selling season has been even busier – triggered by many factors, with succession the front-runner.

Rawdon Briggs

“For some, succession might mean retirement and for others it may be due to health reasons. Children may have made it clear they don’t want to return to the family farm and some simply don’t want to farm anymore, because they are tired of worrying about where commodity prices are headed,” Mr Briggs said.

“Sometimes one asset is carved off a portfolio of properties to de-leverage and provide cash for family members who are leaving the business. In that case, succession doesn’t mean selling off the entire business,” he said.

Other factors in the current market environment include slowing interest rates and corporate owners selling end-of-life fund assets.

Mr Briggs said improving seasonal conditions have played a role in the surge of listings, particularly in Victoria and South Australia.

“Profitability varies by enterprise, with beef and fat lambs performing well. For the wool industry, sentiment will rise gradually. Grain at scale is profitable, with enterprises growing canola over cereals in a much stronger position.”

In terms of buyers, Mr Briggs said institutional investors and family offices are active, particularly in assets worth more than $50 million, while family farmers dominate below that threshold.

Col Medway, LAWD

New South Wales-based Col Medway is a founding and senior director at LAWD. He said spring is always busy, and this selling season is no busier than any other in his region.

“Succession is certainly a common theme, and this includes the inevitable reasons such as ageing and health,” Mr Medway said.

Col Medway

Given the number of listings on the market, he said buyers have time and are using their discretion.

“There is always good demand for A-class assets, however secondary assets are more difficult to move, particularly if neighbours aren’t interested.”

“Most people are seeking well-appointed properties, particularly with quality infrastructure and good fertiliser history (where it is relevant). Conversely, buyers are walking straight past assets that require a significant capital injection,” he said.

Mr Medway said land adjacent to existing holdings is still compelling, and neighbours seeking expansion are unlikely to allow land over the boundary fence to slip away, because those opportunities may not present again.

“There appears to be more confidence in the red meat market, with many producers getting ready to make their next move,” he said.

“Even if they haven’t found the right property just yet, they have discussed their plans with bankers and brokers and believe they can make the numbers work given the current level of property values and commodity prices.”

Mr Medway said grain prices may be on the low side, but in northern New South Wales, yield will compensate for that and there should be a strong result.

“There is not a lot of subsoil moisture in southern New South Wales, Victoria and South Australia and in terms of rainfall, the situation is still very much ‘hand to mouth’ which means the winter crop will require a soft finish for it to come home well.”

He said property presentation was important. and takes time.

“I am currently fielding inquiry from people wanting to sell this year. More prudent vendors are having conversations about taking their assets to market next spring. They are the conversations we would rather be having to ensure marketing campaigns have the best chance of success.”

Mr Medway said in terms of the components of a deal being done, banking and legal speeds are still challenging.

“However, what we are now seeing is prudent ag businesses with a strategy to expand conversing with their banks and financiers well before a property has been identified to purchase.”

“Buyers need indicative approvals, at what range they can operate in, in terms of value, well before they find a property to purchase. Interested parties who find a property but have not had a conversation with their bank will not be able to participate in that campaign,” Mr Medway said.

Nick Myer, Elders

Victorian-based Nick Myer oversees Victoria and the Riverina for Elders Real Estate.

He said the spring months have seen several significant assets across all classes present to market.

Nick Myer

“A contributor to this trend has been challenging seasonal conditions throughout the first half of the year, which witnessed a number of autumn campaigns delayed to the spring.”

When it comes to the high number of listings, Mr Myer said the reasons for divestment vary from campaign to campaign.

“This includes succession planning, rebalancing of portfolios or in some cases, assets reaching the maturity within their investment cycles.”

“Quality assets are still being met with demand, and buyer confidence has been upheld by a combination of strong commodity prices across multiple sectors, in addition to what appears to be stabilising interest rates,” he said.

Prices

According to Bendigo Bank’s 2025 Australian Farmland Values mid-year update, for the first time since 2013, the national median price growth for farmland has stalled.

“Values plateaued across the first half of 2025, with the national median price of farmland falling to $9885/ha – a 3.1 percent year-on-year decline,” the bank’s report said.

From a volume perspective, it found the trend towards fewer overall farmland sales continued over this period.

“National transactions fell to a record low 3104 sales, down 11.5pc year-on-year and almost 15pc below the second half of 2024. This also sits well beneath the five-year average of 4118 sales across the first half of the year.”

It attributes the lower sales to the ongoing consolidation of landholdings, tighter margins and challenging market conditions.

“This has limited buyer urgency seen during the period 2020 to 2023. As a result, properties are continuing to take longer to sell, particularly across more marginal areas.”

“The sharp rise in land prices over the last decade is also limiting the prospective pool of buyers to those with stronger margins. While efficiencies derived from economies of scale will continue to play a key role in buyer intentions, generating viable returns at current land prices will become an increasing obstacle for the smaller producers in coming years.”

The report found the major drivers of farmland values – commodity prices, seasonal conditions and interest rates – remain varied across regions and commodities.

“Seasonal conditions still loom as a larger factor impacting buying intentions in the current environment. Dry conditions continued to affect most regions across southern states and Western Australia.”

In contrast, it said Queensland and New South Wales encountered mixed seasonal conditions depending upon region.

“Livestock prices continued to surge amidst strong global demand, while grain prices have eased. Interest rate cuts were seen for the first time since late 2020, providing a small boost to borrowing power, which lifted sentiment, particularly for those looking to purchase neighbouring land.”