There were a variety of reasons given for property value increases across the Capital region throughout the 2020/21 financial year according to the NSW Valuer General’s report. Photo: File.
The total land value for the South Coast region has jumped 30 per cent in the past 12 months – more than six per cent above the state average.
According to the recently released NSW Valuer General’s report for the 2020/21 financial year, land values increased by 24 per cent across NSW for the 12 months to 1 July 2021.
As part of the report, the NSW Valuer General Dr David Parker completed land values for every piece of land across NSW. The land values reflect the value of the land only, as of 1 July 2021, following assessment from independent contract valuers’ analysis of more than 67,000 property sales state-wide.
“The residential market has experienced a continuing trend of buyers focusing on regional areas in search of greater affordability and preferred lifestyle options,” said Dr Parker.
“This green change, tree change, sea change and ski change has been exacerbated by greater employer flexibility in work locations as a result of working from home during COVID.”
A substantial increase in residential land value was seen in the Shoalhaven region at 49.2 per cent while Eurobodalla, at 30.4 per cent, and Bega Valley, at 29.3 per cent, were also above the state average. Demand throughout the South Coast was pushed up by purchasers from Melbourne, Canberra and Sydney, with residents from those areas relocating for a lifestyle change.
South Coast rural land values also increased significantly at an average of 35.2 per cent across the region. Shoalhaven again led at 47.9 per cent, while the Eurobodalla at 34.1 per cent and Bega Valley at 24.1 per cent also performed strongly. Purchasers of these properties were seeking rural lifestyle but also at a commutable distance to larger population centres.
There was a total land value increase in the South East region of 22.6 per cent. This area includes the local government areas of Goulburn Mulwaree, Queanbeyan-Palerang Regional, Snowy Monaro Regional, Snowy Valleys, Upper Lachlan and Yass Valley.
Rural land values increased significantly throughout the South East at an average of 33.9 per cent. Upper Lachlan was the peak at 45.89 per cent while Queanbeyan-Palerang at 34.18 per cent and the Snowy Monaro at 24.63 per cent also saw substantial increases.
Bushfire-impacted areas recovered across the board with solid demand to expand in high rainfall areas and purchasers seeking hobby farms outside the area.
Flexible working arrangements and shifting lifestyle preferences increased the residential appeal of the region as residential land values increased by 15.5 per cent.
Housing affordability, when compared to the larger markets, also had a significant impact on demand. Due to the expansion of the Snowy 2.0 scheme, the Snowy Monaro experienced a region-peaking increase of 34.9 per cent.
Residential land values in the Riverina region experienced a below-average but still appreciable increase of 12.4 per cent, including a growth of 20 per cent in the Cootamundra–Gundagai Local Government area. Buyers in this region cited favourable economic conditions creating confidence and an overall interest in regional locations.
The Hilltops region also experienced a substantial increase in rural land value at 24.4 per cent. Good seasonal conditions and high commodity prices were major reasons for this increase.
Hilltops also had strong demand from people wanting to expand their already held rural properties.
To view the report or receive other property value related information, visit the Valuer-General NSW website or call 1800 110 038.
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