ULS commercial land and rural land values record increase

Commercial land values in the Upper Lachlan Shire (ULS) local government area (LGA) recorded a very strong increase of 26.5 per cent between July 1, 2017, and July 1, 2018.

While most of the South East region experienced a moderate increase in commercial land values of 5.8 per cent, the ULS was the only local government area (LGA) in the region to record this result. 

Across NSW commercial land values in Dubbo Regional, Mid-Western Regional also recorded an increase of greater than 25 per cent.  

Rural land sale record increase: Lake Birubi was one of a number of record sales in the Upper Lachlan in 2018. Photo courtesy Paul McInstosh.

Rural land sale record increase: Lake Birubi was one of a number of record sales in the Upper Lachlan in 2018. Photo courtesy Paul McInstosh.

The NSW land values were released by the acting NSW valuer general Michael Parker on January 8. The results were prepared by private contract valuers with expertise in the local area, and is the value of the land only, and does not include the value of the home or other structures. 

There were generally increased land values across the South East region in the LGA of; Bega Valley, Eurobodalla, Goulburn Mulwaree, Queanbeyan-Palerang Regional, Snowy Monaro Regional, Snowy Valleys, Upper Lachlan Shire and Yass Valley - since 2017.

In regions across NSW, the largest difference was in Western which recorded an increase of of 20.8 per cent, then Central West with 19.2 per cent, South East was 15.7 per cent, and then Illawarra with 14.6 per cent, Sydney Central region increased slightly by 3.2 per cent.

The total land value for the South East region increased by 15.7 per cent from $29.2 billion to $33.8 billion. In comparison, between 2017 and 2016 the increase in land value in South East region was 7.8 per cent.

The Yass Valley local government area had the strongest increase in land values 31.3 per cent influenced by its proximity to Canberra.

Overall in South East, rural land values experienced a very strong increase of 25.9 per cent. 

The ULS recorded an increase of 24.9 per cent. 

Other LGA with very strong increases in rural land values were Queanbeyan-Palerang Regional 27.9 percent, Goulburn Mulwaree 31.4 per cent and Yass Valley 44.9 per cent. 

Strong increases were also recorded Snowy Monaro Regional 21.1 per cent and Eurobodalla 10.6 per cent. A moderate overall increase occurred in Bega Valley 8.7 per cent LGA.

There was overall a strong increase in residential land values of 11.3 per cent.

A significant outlier in the State was in the Goulburn Mulwaree 25.8 per cent due to strong demand for affordable properties.

The report showed there are now 18 LGA in NSW where the median residential land value is over one million dollars

While residential land value in the Upper Lachlan showed an increase of 17.7 per cent. 

Photo: Report on NSW land values as at 1 July 2018.

Photo: Report on NSW land values as at 1 July 2018.

The report showed that, “The township of Crookwell generally showed strong increases in most residential areas being supported by purchasers downsizing from rural holdings and relocations from villages within the area.

“The villages of Taralga and Collector showed strong increases while the villages of Dalton and Jerrawa showed very strong increases.

“Villages to the south and east of the local government area saw the highest land value movements due to proximity and appeal from the Canberra market.”

Industrial land values in the region also experienced moderate overall increases of 7.9 per cent. The Snowy Monaro Regional 64 per cent was the only area to record a very strong increase related to increased demand following population growth in the Jindabyne area, as well as a firm Cooma industrial market.

Across NSW overall, all sectors of the property market experienced increases in land values with strong increases overall in the commercial, industrial and rural market segments.

Residential land values in the Sydney metropolitan area generally saw slight increases after trends of strong increases in recent years, while major coastal and regional centres experienced varied value movements.