General News
26 September, 2024
Local land values soar
An increase in western residential markets could help land values across the state reach more than $3 trillion for the first time ever according to new analysis from the NSW Valuer General.
Preliminary analysis indicates strongest growth in Cobar, Gilgandra, and Bogan shires, according to Revenue NSW. Land values have moved more than 30 per cent across the three shires, underpinned by recent elevated sales in the respective areas. Individual results in other areas will be released later.
Sally Dale, Valuer General of NSW, confirmed the strong increases across the three western NSW shire councils. “We’re seeing really strong increases in western residential markets such as those we’ve observed in Cobar, Gilgandra and Bogan - with a likely cause trend of people moving west continuing,” Ms. Dale said. The NSW Valuer General is finalising land values for every parcel of land across NSW. The land values reflect the value of land only, and are measured as at July 1, 2024.
Residential land values across the state are leading the growth in value, experiencing an almost eight per cent average increase across NSW compared to the 12 months to July 1, 2023. Property sales are the most important factor valuers consider when determining land values. The new land values were assessed following analysis of almost 50,000 property sales. Overall, land values have increased over the 12-month period from July 1, 2023 to July 1, 2024.
“While we are still in the process of finalising land values, with continued strong demand for property and constrained supply it’s no surprise preliminary indications across NSW have land values on average increasing by six-and-a-half per cent across the varying property types,” Ms. Dale said. “2024 could see NSW’s combined land value break through $3 trillion in value backed by continued demand, underpinned by increased property sale prices and driven mostly by the state’s residential markets - a testament to the resilience of the property sector in NSW despite difficult financial lending markets.”
Commercial and rural land values are only seeing minor increases at 2.9 per cent and 1.4 per cent, respectively statewide, despite isolated significant sales being experienced in nuanced regional markets such as Cobar, where the predominant commercial sector is underpinned by two engine industries, being mining and agriculture. “While commercial and rural markets continue to increase with some significant increases in value experienced again in more regional markets, overall the growth of land values in the sector has remained marginal for the 12 months to July 1, 2024,” Ms. Dale said.
Land values are being finalised and will be released in January 2025 on the valuer general’s website. The new land values will be used by a third of the states’ councils as part of their rates calculations - with notices of valuation to be sent to landowners in January and February 2024. Landholders have 60 days to object to their valuation from receipt of their notice if they think it is wrong and can provide sales evidence to support their objection. For more information on how your rates are calculated visit the Office of Local Government or contact your local council.
Revenue NSW will use the land values to calculate land tax for the 2025 land tax year for landowners that are subject to land tax. Registered land tax clients will receive their land tax assessment from Revenue NSW from January 2025. The latest land values for all properties in NSW will be available on the Valuer General NSW website in January, along with information on trends, medians and typical land values for each local government area.
