Shire land values jump 15 per cent

Land values in Gunnedah Shire have increased by a total 15 per cent, or almost $500 million, between July 2022 and July 2023.

The increase puts the shire as one of the best performing areas in NSW for that period, figures from the Valuer General’s office show.

“Land values across the Gunnedah local government area experienced an overall strong increase between 2022 and 2023, driven by strong increases to residential, industrial and rural zoned lands, while commercial zoned land experienced a slight increase,” information from the Valuer General read.

Residential land value increased by 15.3 per cent, commercial by 3.8 per cent, industrial by 19.3 per cent and rural by 15.4 per cent.

“Residential land values experienced a strong increase across the Gunnedah local government area between 2022 and 2023 given strong demand from purchasers relocating to the region for the quality regional lifestyle on offer, and ongoing strong demand from investors driven by mining in the region.

“The southern side of Gunnedah experienced a slight increase given the increased supply of properties listed on the market. Mixed-use zoned land generally located on the fringe of the commercial district remained steady as demand met supply.

Industrial land values increased on the back of demand from investors across the region following sustained confidence built up during the COVID-10 pandemic, the information read.

Heavy industrial zoned land remained steady given a smaller market dominated by owner occupiers.

“Rural land values across the Gunnedah local government area experienced a strong increase,” the Valuer General’s information read.

“Cereal markets remain strong which has led to strong demand for quality cropping country in contrast to declining livestock commodity markets which has led to falling returns for graziers and less demand for grazing country.

The total land value for the North West region increased by 19.7 per cent, the biggest increase in NSW, from approximately $36 billion to $43 billion.

Residential land values across the region experienced a moderate increase of 5.4 per cent. The strong increase in Narrabri (22.1 per cent) was attributable to growth in commercial and industrial sectors.

Commercial land values across the region experienced a strong increase of 10.1 per cent. There were strong increases in Narrabri (14.3 per cent) with good demand for local goods and services underpinned by mining and infrastructure projects and a continuing strong rural sector.

Industrial land values across the region experienced a strong increase of 20.8 per cent. The very strong increase in Narrabri (86.9 per cent) was driven by the expanding coal and gas mining industries, the Inland Rail project which is currently under construction, and strong agricultural sector.

Rural land values across the region experienced a strong increase of 23.8 per cent. The strongest increases in Walgett (61 per cent) and Moree Plains (44.2 per cent) were attributable to stronger demand for cultivation country given the stronger returns for cropping.

In addition, a very wet season in late 2022 added to the appeal and presentation of properties in the more marginal rainfall areas across the region.