Australia's property market continues to evolve following the latest Federal Budget, but according to local industry experts, one asset class continues to outperform the rest, farmland.

While residential property remains highly sought after across regional centres, growing interest from investors is increasingly shifting towards agricultural land, driven by strong long term returns, favourable tax settings and multiple income opportunities.

Josh Keefe from Agri Property said farmland has consistently proven to be Australia's strongest performing property investment over the past two decades.

"What's Australia's best performing property asset? It's farmland," Mr Keefe said.

"For the past 20 plus years I have seen farmland consistently outperform residential and commercial property."

Mr Keefe said recent budget changes have encouraged more residential investors to consider rural assets as part of their investment portfolios.

"With the latest budget changes, residential investors are now shifting their focus to rural assets and for good reason," he said.

He pointed to long term capital growth as one of the sector's biggest advantages.

"Farmland has delivered eight to nine per cent average annual capital growth for the past 20 years."

Beyond capital appreciation, Mr Keefe said farmland also provides several taxation and income benefits that continue to attract investors.

"There is no land tax, superior capital gains tax treatment, and primary producer tax deductions that let you claim virtually everything," he said.

"There are also multiple income streams like rental from the house, livestock sales, cropping and fodder production."

Rural properties across the Central West are attracting significant buyer attention.

Mr Keefe said large farming properties in the region were generating exceptional enquiry.

"Farms in the area are in hot demand."

"Two in particular at Woodstock and Grenfell, being 1,071 acres and 2,115 acres, are experiencing high enquiry levels and I have people side-by-side every day inspecting these blocks and others."

One recent sale demonstrated the scale of interest currently being seen across the rural sector.

"A 3,000 acre property at Reid's Flat that we recently sold at auction over reserve had 42 inspections," he said.

With affordable housing, productive agricultural land and ongoing industrial development attracting buyers from across the state, local agents say confidence in the region remains high despite broader changes to Australia's property landscape.