January 06, 2016
SYDNEY’S WEST LEADS THE WAY IN LAND VALUES GROWTH
Land values in Sydney’s West underwent a boom in the last financial year far exceeding the rest of the greater metropolitan area, according to new figures released by NSW Valuer General Simon Gilkes today.
With NSW land values now tipping over $1.34 trillion, this represents a 19.6 per cent growth rate on last year’s $1.12 trillion total.
The local government areas of Parramatta, Blacktown and Holroyd recorded the strongest growth in residential land values.
Annual land valuations calculated by the Office of the Valuer General are for land only and do not include the value of the home or other improvements.
Blacktown topped the state, with the local government area recording a 47 per cent growth in the value of residential land in 2014/2015. Holroyd and Parramatta followed with growth rates of 38 and 35.9 per cent respectively.
Two further local government areas west of the CBD – Fairfield and Auburn – were also among the nine local government areas recording residential land value growth greater than 30 per cent in 2014/15.
“Residential land values showed significant growth over the year to 1 July 2015, particularly in Sydney’s more affordable areas around Parramatta and beyond,” Mr Gilkes said.
“These increases have been fuelled in part by major improvements to transport infrastructure along with historically low interest rates. The market has also been supported by increased land supply through major new land releases and increases to permitted residential densities in many areas.”
Four other local government areas (LGAs) recorded growth rates higher than 30 per cent – Canada Bay (30.1 per cent), The Hills Shire (31.8 per cent), Randwick (34.8 per cent) and Shellharbour, the only LGA outside the Sydney metropolitan basin - at 35 per cent.
The new valuations have pushed a further five Sydney LGAs into the $1 million plus category for median residential land value.
Canada Bay (median land value $1.05 million), Lane Cove and North Sydney (both $1.11 million), Strathfield ($1.14 million) and Randwick ($1.15 million) join Manly ($1.26 million), Willoughby ($1.32 million), Hunters Hill ($1.36 million), Waverley ($1.41 million), Woollahra ($1.57 million) and Mosman ($1.59 million).
Eight regional and rural LGAs in the state experienced negative growth, with Cobar, Muswellbrook and Bogan dropping the most in value with negative growth of 16.4 percent, 10.4 per cent and 6.4 per cent respectively.
More than 2.5 million residential, rural, business and industrial land values for properties in NSW were assessed over the past six months, with landowners in 47 LGAs to receive valuation notices stating the land value of properties based on market conditions as at 1 July 2015.
Although only about one third of NSW LGAs receive a Notice of Valuation each year, all land in NSW is valued on an annual basis.
Mr Gilkes said the latest land values will help the 47 local councils determine the amount of council rates landholders pay.
“While important, valuations are only one of the factors councils use to determine each landholder’s rating liability,” he said.
“Increases or decreases in land values do not necessarily lead to similar increases or decreases in rates.”
The Valuer General is an independent statutory officer appointed by the Governor of NSW to oversee the valuation system. The Valuer General is responsible for providing fair and consistent land values for rating and taxing purposes.