Value of property in NSW hits $3 trillion

Land values in Sydney have shattered records to reach an unprecedented $2 trillion milestone, driven by soaring Western Sydney prices and demand near the new airport precinct. See how much your suburb has grown.

Sydney property values have grown to record levels. Picture: NCA NewsWire

Land values across Sydney have for the first time soared to a whopping $2 trillion as with rising demand for properties in Western Sydney – including around the Aerotropolis – behind the increase.

Across the State, The Sunday Telegraph can reveal the combined value of land parcels in NSW has surpassed $3 trillion with millionaire coastal playgrounds such as Byron Bay driving up the total.

However, the annual NSW Valuer General land valuations report showed a “minor correction” in other “secondary” lifestyle locations, which contributed to rural values across the State dropping this year.

Property around the new Western Sydney International Airport is in high demand. Picture: Jonathan Ng

The state government values every parcel of residential, industrial and commercial land across the NSW each year to help Revenue NSW to calculate land tax for property owners while also being used by councils to help work out rate increases.

Property sales are the most important factor valuers consider when determining land values, with the latest figures based on an analysis of more than 66,000 transactions.

The total land value for Greater Sydney experienced a combined increase of 4.5 per cent, rising from $1.9 trillion last year.

In the Western Sydney, residential land values in Fairfield and Penrith rose by around 11 per cent as buyers moved towards areas with greater affordability.

Commercial land in Camden had one of he largest increases with the NSW Valuer General’s Office attributing the rise to demand for space near the soon to be opened Aerotropolis and population growth.

Western Sydney Airport and the Metro Line was attributed to increases in industrial land in Sydney, which rose by 3.5 per cent.

In the bush, people moving west was attributed to strong increases in western NSW towns such as Hay where land values jumped 40 per cent.

NSW Valuer General Sally Dale said the latest land valuations showed a sustained demand across all residential markets in NSW, with no signs of the trend easing over the immediate or near-term future.

Growth has been fuelled by many factors, including population growth. Picture: Julian Andrews

The growth in land values had largely been driven by reduced interest rates, population growth and the need for more supply, she said.

“We’re seeing really strong increases in western NSW residential markets for the second year running as more people move west,” she said.

“Above average growth was also seen in some coastal residential markets – including Byron and Newcastle – underpinned by the popularity of these prestige coastal areas and strong demand from first home buyers for more affordable areas.

“In metropolitan markets, there were strong increases in Fairfield, Lane Cove and Penrith, all moving by more than 10 per cent as demand continues to outstrip supply.”

The combined value of land across NSW rose by 3.6 per cent.

Council receive new values every three years with about two-third to be sent the revised data to set their rates.

Lands and Property Minister Steve Kamper said the latest valuations showed the market had entered a pattern of “sustainable and steady growth”.

He said the Minns government would continue to focus on boosting supply to address housing shortages.

“Whether you are a young couple or an investor, or anything in between, this is encouraging news that will promote confidence in the NSW market,” he said.