Queensland Rural Market Report H2/26

Queensland's rural property market continues to demonstrate resilience, supported by strong long-term growth in land values despite softer transaction activity and ongoing pressure on farm profitability. While seasonal conditions vary across the state and operating costs remain elevated, robust price growth and demand for quality agricultural assets continue to underpin confidence across rural markets.

Rural property prices across Queensland increased by 28.2% in 2025, significantly outperforming many other agricultural regions nationally. At the same time, farm businesses are navigating a more challenging operating environment, with higher input costs and lower forecast profitability expected to influence decision-making over the coming year.

Economic and seasonal drivers

Australia's economic outlook remains mixed, with economic growth forecast to slow to 1.5% in FY27 while inflation is expected to remain above long-term averages at 3.3%. Elevated borrowing and operating costs continue to affect business investment and agricultural production across regional Queensland.

Seasonal conditions across Queensland are expected to vary by region. The Bureau of Meteorology forecasts above-average rainfall across inland southern Queensland between November and January, while below-average rainfall is likely across parts of northern Queensland. Temperatures are expected to remain warmer than average across the state, with increased bushfire risk forecast for sections of the southern interior, Darling Downs and Granite Belt due to lower soil moisture and curing fuels.

Rural property market

Transaction activity has moderated from recent highs. Rural Queensland recorded 728 broadacre farmland sales in 2025, down nearly 30% year-on-year and below the five-year average of 954 annual transactions. Despite lower activity, Queensland maintained a 20% share of all rural property sales nationally.

In contrast, land values strengthened significantly. The average rural property price rose 28.2% to $8,740 per hectare in 2025, following growth of 84% over the past five years and 288% over the past two decades. North Queensland Coastal recorded the strongest average farmland values at $12,815 per hectare, followed by South Queensland Coastal and Eastern Darling Downs.

Commodities and farm performance

Farm operating conditions remain challenging. ABARES forecasts broadacre farm costs to remain elevated at approximately $734,000 per farm in 2026-27, with fuel, labour, water, fodder and chemical expenses continuing to place pressure on margins. Average broadacre farm business profits are forecast to fall 39%, reflecting lower production volumes and ongoing cost pressures.

Commodity markets present a mixed outlook. Livestock sectors are expected to soften, with cattle prices forecast to decline 4.2% and lamb prices 4.6% in FY27. However, several commodities are expected to perform strongly, including wheat (+23.0%), wool (+15.3%), cotton (+12.3%), poultry exports (+6.0%) and dairy prices (+3.5%). Queensland's important sugar sector is also forecast to improve, with global sugar prices expected to rise 4.7% in FY27.

Outlook

Rural Queensland remains well positioned for long-term growth, supported by strong agricultural fundamentals, diverse commodity production and ongoing demand for quality farmland. While transaction volumes have eased and farm profitability is expected to come under pressure in the short term, rising land values highlight continued investor confidence in the sector.  

As market conditions rebalance, opportunities are emerging for buyers seeking scale, productivity and long-term value. With Queensland rural property prices continuing to outperform and national farmland values forecast to increase further in 2026, the state's rural market remains an attractive destination for agricultural investment and expansion.