Mid-Western record 'very significant' rise in land value over past year

LAND: A birdseye view of the Mudgee area which experienced a sigficant rise in value over the past year. Picture: FILE
LAND: A birdseye view of the Mudgee area which experienced a sigficant rise in value over the past year. Picture: FILE

Recently published land values for the Central Tablelands reveal the Mid-Western area, since July 1, 2020, is not only booming when it comes to house prices, but land values alike.

The NSW Valuer General, Dr David Parker said property sales are the most important factor valuers consider when determining land values.

"Land value is the value of the land only and does not include the value of a home or other structures," Dr Parker said.

"Private contract valuers with expertise in their local areas have prepared the July, 1 2021 land values on behalf of the Valuer General, to determine new land values across the region. The valuers consider a range of factors in determining land value, including the features of the land and its legally permitted use.

"Valuer General NSW has quality assured the land values for fairness and consistency."

The total land value for the Central Tablelands region experienced a strong increase of 21.8 per cent between July, 1 2020 and July, 1 2021, from $21.9 billion to $26.7 billion.

Residential land values across the region experienced a strong increase of 24.7 per cent. The strongest increases were experienced in Orange (39.7 per cent) and Cowra (38.7 per cent) given the high level of interest from purchasers seeking alternative lifestyle options in regional areas over metropolitan living.

This movement combined with record low mortgage rates, improving economic conditions and low listing numbers has led to a strong increase in residential land values across the Central Tablelands.

Commercial land values across the region experienced a strong increase of 11.2 per cent. The strongest increases were experienced in Mid-Western Regional (22.2 per cent) and Orange (14.1 per cent), mostly attributable to the strong demand from the health, tourism, manufacturing, and mining sectors, as well as returned market confidence following the effects of COVID-19.

Industrial land values across the region experienced a strongincrease of 14.6 per cent. Cowra (21.8 per cent) and Orange (18.6 per cent) experienced strong increases attributable to a limited supply of industrial land and strong demand from local businesses underpinned by confidence in these highly diversified local economies.

Lithgow (-5.5 per cent) experienced a moderate decrease due to the transition away from the coal industry.

Rural land values across the region experienced a strong increase of 22.1 per cent. Very strong increaseswere recorded in Mid-Western Regional (30.2 per cent), Blayney (27.5 per cent) and Orange (25.1 per cent) underpinned by the growth in regional residential markets and a continued trend of metropolitan purchasers seeking affordable lifestyle options in regional areas.

This movement combined with low interest rates, strong economic confidence, and low sale listing numbers led to strong increases across all rural lifestyle markets across the region. Rural land values suitable for primary production experienced strong increases given high commodity prices, low interest rates and favourable seasonal conditions.

Revenue NSW will use the land values to calculate land tax for the 2022 land tax year. Registered land tax clients will receive a land tax assessment from Revenue NSW from late January 2022.

Dr Parker encouraged the public to visit https://www.valuergeneral.nsw.gov.au or call 1800 110 038 for more information on land values and the valuation system.

"The latest land values for all properties in NSW are available on our website along with information on trends, medians and typical land values for each local government area," Dr Parker said.

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This story Mid-Western record 'very significant' rise in land value first appeared on Mudgee Guardian.