Land values in Narrabri Shire, and the broader North West region, are among the best performing in NSW, according to figures published in the Valuer General’s report on Tuesday.
The total land value in Narrabri Shire increased 10 per cent from July 2022 to July 2023, reaching $6.2 billion.
Industrial land was the best performer, increasing 86.9 per cent, followed by residential 22.1 per cent, commercial 14.3 per cent and rural 10.8 per cent.
The land value figures paint an optimistic future for continued growth.
“Land values across the Narrabri local government area experienced an overall strong increase between 2022 and 2023, driven by strong increases to the residential, commercial and rural sectors, whilst the industrial sector experienced a very strong increase,” information from the Valuer General reads.
“Residential land values across the Narrabri local government area experienced a strong increase between 2022 and 2023.”
“This trend was driven primarily due to increased demand for residential housing off the back of increased employment in the region due given the expanding mining industry, developing gas industry, Inland Rail Project under construction and recovery of the agricultural sector over the past three years.
“Exceptions to this trend include a very strong increase to Wee Waa residential, mixed-use and large lot residential properties given its close proximity to Narrabri and affordability in comparison to Narrabri.
“In addition, sentiment has increased off the back of a thriving agricultural sector over the last three years and the construction of the new local high school.
“Large lot residential properties at Narrabri experienced a very strong increase as demand outweighed supply, whilst large lot residential properties at Boggabri experienced a slight increase given ample supply of properties were brought to market.”
Information from the Valuer General said exceptions included those less favourably located properties at Narrabri which experienced a strong decrease as a strong supply of properties were brought to market.
“The locality includes lower quality housing stock and is generally considered an investment market given affordability and sound rental returns,” the information read.
“Houses in this area tend to be listed on the market for longer in comparison to superior areas in town.
“The village markets of Edgeroi, Gwabegar and Pilliga remained steady as supply met demand.”
Referencing rural land values, the report noted that livestock commodity markets have declined significantly while cereal markets remain strong, with demand for cropping land considered stronger than demand for grazing properties.
“Properties to the south Narrabri generally more suited to grazing, including timbered holdings have remained steady or experienced a slight decrease as a result,” the information read.
“Rural homesites scattered across the shire have remained steady in line with the village markets, while Wee Waa rural homesites experienced a very strong increase in accord with the Wee Waa residential market.”
The large increase in industrial land values has been credited to the gas and mining industries as well as the Inland Rail.
“Demand for industrial was driven by both owner occupiers and the investor market,” the Valuer General’s information read.
“Despite rising interest rates, demand continues to exceed supply in the Narrabri market, particularly for good quality established properties being sold with vacant possession or subject to existing leases.”
At a regional level, land values in the North West increased at a faster rate than any other region in NSW.
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