Soaring land value in Orchard Hills ahead of rezoning fuels financial hardship

Residents of semirural suburbs in Sydney’s west set to be overhauled by the state government’s redevelopment blitz are ‘dying a slow death’ from soaring land value and taxes while waiting to be rezoned.

Sisters Niki, Sascha and Jayde Vukmirica holding her one-year-old son Huxley at Luddenham. Picture: Sam Ruttyn

Residents of suburbs slated for rezoning as part of NSW’s development blitz say they are being priced out of their homes by skyrocketing land value, rates and taxes amid an unclear future.

Orchard Hills in the Penrith local government area, along with parts of nearby Luddenham, are in the state government’s firing line for development surrounding future metro stations.

Under the government’s precinct plan, Orchard Hills will be rezoned into a mixed-use centre with seven neighbourhoods featuring low, medium and high-density housing plus a civic and cultural hub and metro station.

Despite being dubbed a “priority release area” by the Planning Department, key details of the staged rezoning remain opaque, with the draft precinct planning package still yet to be exhibited to the public.

However, behind the scenes land value continues to climb, with Orchard Hills experiencing an average increase of 170 per cent in 2022.

Niki, Sascha and Jayde Vukmirica, and son Huxley, face ‘insane’ challenges. Picture: Sam Ruttyn

One resident says their land rose from being valued $1.56m in 2020 to $7m in 2023, another man claims his home is now worth $15m.

In nearby Luddenham, the anticipation surrounding the Aerotropolis is driving land value up, yet any sort of development or zoning is barred until the flight paths for Badgerys Creek are finalised by the federal government.

When approached for comment, a spokesman for the Valuer General said property sales “were the most important factor when determining value”, while zoning, shape, size and valuable use also played a part.

The spokesman also said the Aerotropolis priority areas had been given consideration since the precinct plan was released in March 2022.

Despite the value increase landowners are far from sitting on a pile, with potential buyers holding off due to the uncertainty around rezoning and what the land can be used for.

Elizabeth Drive and Luddenham Rd. Picture: Gaye Gerard

Meanwhile, the skyrocketing land values are subsequently inflating land taxes and council rates, sparking fears for many landowners of being priced out or unable to sell.

Last year the average rate increase in Orchard Hills was about $1800, which is estimated to grow 4 per cent in the coming year, followed by another 2.5 per cent hike.

Sascha Vukmirica, who lives on a subdivided lot next door to her business the Luddenham Raceway, says when her family purchased in 2014 their land tax bill was $20,000 – a figure which has since ballooned to $440,000 with an additional $200,000 in council rates.

“It’s insane because despite the fact that the valuer general is holding out that the land is really valuable, it’s not, because our priority-two classification means we can’t do anything with it and no one wants to buy it, but we are forced paying rates and taxes as if it could be developed and right this second,” she said.

The Western Sydney Aerotropolis is driving land value up.

“We have had to take out loans and run the business at a loss to try and cope, and we just keep hoping that common sense will prevail so that we can continue to live and work on our property without going broke.”

One concerned resident of Orchard Hills South, says the ageing population is “left to die a slow death, trapped between waiting on the release of their land, while being priced off it”.

“The land release needs to be done all in one go, so people can make an informed decision instead of worrying to death about being priced out of their homes,’’ he said.

“The average age of a resident in Orchard Hills is 65, the worry and concern of ‘where am I going to get that money to stay’ is a lot of financial stress for people in the later stages of life.”

An artist’s impression of Orchard Hills North.

Similar concerns are echoed by Diane Azzopardi, who as part of the Orchard Hills Community Consultative Committee worries elderly residents will have nowhere else to go.

“We’re on tenterhooks, there’s been no real indication of how those stages could work, you look at areas near Tallawong station that are only being built now, does that mean we will be another five to 10 years away,” Ms Azzopardi said.

“If we have to keep paying those higher rates it’s going to force out those who can’t afford to live there, but they don’t have anywhere else to go.”

In a statement, the Office of the Valuer General NSW said land values were determined on behalf of the valuer general on July 1 each year in line with the Valuation of Land Act 1916.

“Valuations are determined by professional valuers familiar with the local area,’’ the statement read.

“The Valuer General is an independent statutory officer appointed to oversee the State’s land

valuation system, that provides a clear separation between the determination of land values and their use by the NSW Government and local councils for rating and land taxing.’’