From Western Australia’s south coast to the New South Wales Southern Tablelands and South Australia, rural property experts are relatively optimistic about their markets in 2025. Factors such as interest rates, climate, and commodity prices are set to play pivotal roles according to several of Raine & Horne Rural’s experts. 

In South Australia, the state’s climate and commodity prices are key factors influencing broadacre rural property sales, according to Paul Clifford, Principal of Raine & Horne Rural SA. “We had our most productive three years sales wise leading up to November last year, but the market has since quietened, with a lack of rain discouraging some buyers,” Paul said.

“Christmas is typically quiet, and the year has started slowly, which can be expected in the lead-up to Australia Day,” Paul explained. “However, it’s quieter than usual, largely due to the drier weather affecting buyer confidence of large holdings.”

Despite this, Paul remains optimistic. “Experts predict that if South Australia sees better-than-average rainfall, the state’s red meat and grain sector could experience a strong period, and this confidence should boost rural real estate demand.”

Paul added that South Australia’s rural lifestyle property market continues to perform steadily. “Demand for quality lifestyle properties remains consistently strong, though the demand for broadacre properties is more directly impacted by climate and commodity market trends.

“An early break to this season would benefit broadacre sales this year dramatically as confidence returns. Farming is a long game not just one dry season,” he added.

In NSW’s Southern Tablelands, Nick Heath, Rural Salesperson at Raine & Horne Rural Goulburn, said there has been some movement in the local rural property market as people return to work after the summer break.

“Savvy buyers are looking to enter the market before interest rates drop,” Nick explained. “There’s also good demand for properties with development potential.”

On the sales side, Nick noted that more listings are coming to market, though he doesn’t believe it’s busier than usual. “We’re coming out of the quieter Christmas period, and as we reach the end of January, stock levels are low, which means more buyers are interested in each property.”

Nick expects a few quality rural properties to come to market in the next few weeks, so it’s a case of “watch this space.” 

With the Bureau of Meteorology forecasting a wetter end to summer, Nick believes this will benefit property presentation. “A nice green, well-presented property always has an edge,” he said.

Looking ahead to the remainder of 2025, Nick remains cautiously optimistic. “I think it’s going to be positive. We should see a very good market if interest rates drop as expected.”

Nick also doesn’t foresee the potential impact of the upcoming federal election affecting rural markets significantly. “There’s talk of a few rate cuts before the election, and that will likely have a greater impact on the market than the election itself,” he said.

John Hetherington, Principal of Raine & Horne Rural Great Southern in WA, comments that rural markets on the south coast of Western Australia should hold steady or experience just a slight easing.

“Sales have softened, particularly for farms, as the return on investments isn’t what it used to be,” he said. “That being said, values have tripled in five years, and it was always unlikely to continue at that rate. Well-presented farms will still sell, but neglected properties may not have the same appeal.”

John noted that many farmers are considering selling, given the substantial gains they’ve enjoyed since 2019. “At the same time, machinery prices are high, and some are questioning whether it’s now time to sell up,” John said. “For many, it’s a case of selling now and securing the profits made.”

An example of this trend is 24 Highbury East Road, where a property bought just five months ago for its crops is now being resold as the owners no longer need it after using it for hay and silage.

As for the climate outlook, John acknowledged that conversations around climate change have become more prevalent. “There have been some very hot days lately, and even those who were previously unconvinced are starting to question whether climate change is having an effect,” he said.

Regarding the economic situation, John doesn’t expect interest rates to impact the rural market significantly but notes that the federal election may have more influence. 

“The decision to end live sheep exports has affected the local farming industry,” he said. “A policy change could bring positive changes for rural communities and the farming sector.” 

If you’re considering buying or selling rural property in 2025, contact your local Raine & Horne Rural office for expert advice and more information.