Growth on the ground: Land values increase across Gunnedah Shire

Gunnedah Shire has experienced a year of considerable growth in land values for industrial, commercial and residential zones.

The NSW Valuer-General’s office published the latest land values for local government areas across NSW earlier this week.

The updated figures show strong growth in industrial land values for Gunnedah Shire, increasing by 11.9 per cent.

Residential land values also were a strong performer, rising 8.5 per cent while commercial land values increased 7.9 per cent.

Rural land remained steady, increasing 0.6 per cent.

The latest information from the Valuer-General shows that the total land values in Gunnedah Shire now sits at almost $4.3 billion.

“Industrial land values experienced an overall strong increase across the Gunnedah local government area between 2024 and 2025,” the Valuer-General’s information read.

“Demand for industrial properties has remained steady over the period, with a shortage of listings driving a modest increase in values. Heavy industrial zoned land experienced a very strong increase reflecting the improved sentiment in the industrial sector in recent years and strong underlying fundamentals locally with mining activity underpinning the economy, with these sites typically larger parcels some with further development potential.”

The new information said there has been increased demand for more affordable residential areas, with the low cost area in west Gunnedah recording a very strong increase.

“Carroll village also recorded a very strong increase, driven by the affordability of this location compared with nearby Gunnedah and Tamworth, being well located on the highway between the two,” the information read.

“The villages of Breeza, Mullaley and Tambar Springs remained steady while the village of Curlewis experienced an overall moderate decrease, following previous significant increases in these locations, with demand having softened.”

The figures also show an increase in the median residential sale price, now at $482,500 from $400,000 in the previous year.

Addressing commercial land values, the Valuer-General’s report said while the prime CBD market segment remained steady, which encompasses a large portion of the retail properties, the more fringe holdings experienced a very strong increase.

“These increases were driven by strong demand for these properties, which includes residential accommodation and service industry uses including beauty, light industrial and bulky goods retail and those serving the agricultural sector,” the information read.

“Rural land values remained steady overall across the Gunnedah local government area between 2024 and 2025 with increased scrutiny around gross margins and rural acquisitions (including increased borrowing costs and a focus on serviceability) reducing demand.

“The more affordable rural lifestyle properties including those in secondary or less convenient locations continue to attract demand with price increases evident in some sub-markets. This is due to increased borrowing costs and economic uncertainty in recent years driving a preference for low-cost properties.

Land values across regional NSW have now reached a total of $342 billion.

Property sales are the most important factor valuers consider when determining land values. The new land values were assessed based on an analysis of more than 21,000 property sales.

Sally Dale, Valuer-General of NSW, said regional NSW has experienced a slight increase in land values but overall has not kept pace with whole-of-state movements which saw NSW experience an overall average 3.6 per cent increase across all land categories to reach a record $3.09 trillion.