“Land FEVER” At Hunter Central Coast Makes Australian Real Estate Exciting

Martin Jackson scouted the Hunter Valley for two years to build a wine cellar to showcase his honey-based wines.

“It’s disappointing that there aren’t many properties priced under A$1,000,000,” he said.

“The price two years ago was quite reasonable… I noticed in the last six months, there has been a big price increase.

Land Value Soars

Real estate remains hot across regional New South Wales and is contributing to rising land values.

Valuer General’s analysis of 67,000 sales in the 2020-21 financial year shows residential land values skyrocketing in all areas.

Selena McMullen, senior project manager in Valuer General’s office, said land values are based on an analysis of real estate sales.

Statewide, growth was fueled by COVID-19 and the work-from-home trend, which allowed buyers to consider a number of lifestyle changes.

The Hunter Coast saw the largest growth in total land value, including residential land, compared to other parts of NSW.

Residential land values increased by more than 38% for the Central Coast, Lake Macquarie, Newcastle and Port Stephens areas.

Last year, Hunter Coast growth was just over two percent.

Statewide, residential land values increased nearly 25% from about 4% the previous year.

Groups in regional NSW saw much larger growth, including Kiama and Byron Bay, up more than 50%.

How Does This Affect Your Profits?

Revenue NSW relies on land values to help calculate 2022 land tax with assessments averaged over a three-year period.

Ms McMullen said the set of values would not be used for council costs and stressed that any increase would be determined by a rate set by the Independent Regulatory and Valuation Tribunal.

“Land owners don’t need to worry about these land values affecting their bottom line,” she said.

Other types of land values, including commercial land, also increased.

For the Hunter Coast, values increased by more than 29%, slightly less than the western region of Sydney, which showed the largest increase of more than 30%.

Rod Dever, president of the Gosford Chamber of Commerce on the Central Coast, said the area was attractive to business owners because of its proximity to Sydney.

“If you follow it over about five years, I think it’s a great thing,” he said.

“It’s attracting new business, it’s attracting business growth, it’s increasing the value and importance of the Central Coast as a commercial and business region.”