Phillip HOPSKINS
SOUTH and West Gippsland have by far the most valuable farmland in Victoria, twice the state average, even though farm values in Gippsland declined marginally right across the board last year, according to the 2025 Report by Bendigo Bank Agribusiness.
South and West Gippsland registered a moderate fall in the median price per hectare in 2024, falling to $29,335/hectare – a 5.5 per cent decline from the previous year.
East Gippsland also recorded a modest year-on-year decline in 2024, falling 3.8 per cent to $12,661/ha. A hectare is about 2.5 acres (2.471), the traditional measure of farmland.
The median price per hectare in 2024 in Victoria was $14,848, with the next highest regions South West with $18,403 and Ovens Murray $16,700.
In South and West Gippsland, despite the lowest price, the median price remained at the second highest value on record, the report said. The two regions maintained a five-year compound annual growth rate of 9.6 per cent.
“The region saw a strong increase in medium-sized farmland parcels hitting the market, while falls in the smaller and larger-sized land sales were also observed,” Bendigo said.
“This has kept the median price per hectare strong, in spite of the falls in higher-priced transactions.”
The report said the supply of farmland across the region rebounded in 2024 after transaction volumes were at record lows in 2023. Volumes were up 17.3 per cent year-on-year, with 115 sales recorded. “The amount of medium-sized parcels sold (50-100ha and 100-150ha) saw a boost in 2024, which was reflected in the increase of sales in the medium-price bracket,” the report said.
“This led to the decline in medium price as twice the number of transactions were in the $20,000-$25,000/ha range compared to 2023, applying downwards pressure on the overall median value.”
Bass Coast ($37,453/ha) and Cardinia ($34,7773/ha) remained the highest-prices municipalities for the region in 2024 as those areas continued to draw a slight premium. They were followed by Baw Baw ($31,003/ha), South Gippsland ($27,665/ha) and Latrobe ($22,208/ha).
In East Gippsland, the modest year-on-year decline continued the 2023 softening in the median price of 3.5 per cent.
“Conditions were more favourable in comparison to other regions of the state, which likely aided in preventing a more substantial decline,” the report said.
The median price in 2024 now sits below both 2022 and 2023. Taking a long-term perspective, the five-year CAGR is 17 per cent and the 10-year CAGR is 6.6 per cent.
“Despite two consecutive years of declines, the East Gippsland region’s median price is 87 per cent higher than 2020, remaining firm in historical terms even after consecutive falls.”
The number of transactions in East Gippsland rose by 14 per cent to reach 113 sales. This broke the recent two-year trend of declines but was still the second lowest number on record and “remains well below its five-year average of 139 and 10-year average of 151”.
At a municipality level, Wellington remained the standout, with a median price per hectare of $16,959/ha, but transaction volumes fell marginally. East Gippsland Shire was $9430/ha.
For the East Gippsland region, the total number of transactions sold above $20,000/ha fell by 13 per cent, creating a softer median price.
“The number of transactions between $0-4000/ha rose by 55 per cent, with a 31 per cent increase in the $12-$16,000/ha range, shaped the backbone of the median price in 2024,” the report said.
In Victoria as a whole, the report said the median price of farmland eased to $14,848/ha in 2024, the first decline since 2015 and halting eight straight years of growth, which was topped by a 35 per cent rise in 2022.
“Despite this marginal decline, the median price per hectare remains 96 per cent above the 2019 median and 83 per cent higher than 2020,” the report said.
Stable interest rates in 2024 after sharp rises in the previous two years helped investor certainty, “though financial costs continued to weigh on buyer interest”.
Conversely, stronger commodity prices – especially in cattle and sheep – after the rough end of 2023 instilled some buyer confidence.
“The five-year CAGR sits at 14 per cent for the state, while the 10-year CAGR is 12 per cent,” the report said.
Transaction volumes across Australia steadied in value over 2024 after a slow 2023, with the national median price per hectare up by 6.9 per cent in 2024 to a record $10,231/ha. This was the 11th consecutive year of growth, it cooled compared to the annual increases of 2018 to 2022 when the median price growth of Australian farmland more than doubled.
