New NSW land valuations released by Valuer General

Land values across regional New South Wales have risen by almost $9 billion according to new figures from the NSW Valuer General.

The NSW Valuer General has finalised land values for every parcel of land across NSW. The land values reflect the value of land only, as at July 1, 2024.

Sally Dale, Valuer General of NSW said regional NSW has experienced a slight increase in land values, with continued demand for property and constrained supply.

The total land value for regional NSW experienced a combined increase of 2.7 per cent across all property types from $329 billion to $338 billion between July 1, 2023 and July 1, 2024.

Property sales are the most important factor valuers consider when determining land values.

Regional industrial land values experienced the highest growth across property categories, with a 9.9 per cent average increase. Warrumbungle (92.4 per cent) saw the largest increase in industrial land values, as well as Greater Hume (61 per cent) and Tamworth Regional (41.5 per cent).

The Narrabri (-20.8 per cent) local government area saw the biggest decrease in industrial land values, driven predominately by reduced demand, with the completion of an Inland Rail construction stage and the announcement that the Narrabri Special Activation Precinct would not proceed in late 2023 being significant contributors, information from the Valuer General’s office stated. A slight decrease was also observed in Singleton (-4.5 per cent), which is largely attributable to some uncertainty in the coal related mining sector.

“The strong growth in Warrumbungle has been attributed to the strong rural economy that supports the industrial market in Coonabarabran,” Ms Dale said.

“Greater Hume also experienced a very strong increase on the back of the town’s growing population and its proximity to the larger Albury-Wodonga centre, which is driving demand, as seen in the Jindera industrial estate.”

Residential land values across regional NSW saw a 2.7 per cent increase on average. Cobar (45.4 per cent) experienced the strongest growth, driven by a strong performing economy, a thriving local minerals and critical minerals mining sector and support from the visitor economy. Gilgandra (37.6 per cent), Balranald (35.9 per cent) and Bogan (29.3 per cent) also saw very strong increases. Bland (-6.7 per cent), Murray River (-3.0 per cent) and Broken Hill (-2.4 per cent) experienced the biggest decreases in residential land values.

“The state’s constrained housing supply and resulting population shifts continue to support increases in residential land values across western NSW as people look for more affordable and available housing,” Ms Dale said.

“It’ll be interesting to see if this trend continues over the longer term and whether the ‘tree change’ remains a trend in the future,” Ms Dale said.

“Major government projects have also supported strong growth, as seen with the increase in residential land values for Gilgandra, with the Inland Rail construction kicking off.”

For Narrabri, residential land values have increased 4.1 per cent.

Commercial land values across regional NSW experienced a minor increase of 2.4 per cent. Uralla (34 per cent) recorded the strongest increase, driven by high interest in the announced Renewable Energy Zone (REZ). Cobar (23 per cent) and Bogan (21.5 per cent) both saw strong increases driven by increased demand from renewed mining activity and the potential for new mines in surrounding areas. Narrabri’s commercial land values experienced an increase of 0.5 per cent.  42 of 71 LGAs experienced less than 1.0 per cent or minor negative growth in commercial land values.

Rural land values across the region experienced a slight increase of 2.7 per cent. Gwydir (23.0 per cent) recorded the highest percentage change, driven by continuing strong demand for good quality farming land in well regarded tightly held areas. Snowy Monaro Regional (19.6 per cent) and Lachlan (19.1 per cent) also saw strong increases.

Greater Hume (-11.1 per cent), Federation (-7.3 per cent) and Narrandera (-6.1 per cent) experienced the biggest decreases in rural land values, attributed to cooling market conditions caused by economic uncertainty. Narrabri’s rural land values increased by just 0.1 per cent.

Overall, land values across NSW increased by 6.4 per cent, from $2.8 trillion to $2.98 trillion. The new land values were assessed following analysis of more than 54,000 property sales.

The new land values will be used by Revenue NSW to calculate land tax for the 2025 land tax year for landowners subject to land tax. Registered land tax clients will receive their land tax assessment from Revenue NSW starting January 2025.  Land values are provided to local councils at least every three years for calculating council rates. Landholders have 60 days from receiving their notice to object to their land valuation if they believe it is incorrect and can provide sales evidence to support their claim.