New figures released by NSW Valuer General, Simon Gilkes, showed the Sydney metropolitan area experienced strong growth in the year to July 1 last year with average land value increases reaching almost 15 per cent.
He said urban development areas on the western fringe including Camden, Campbelltown, Liverpool and Penrith experienced the greatest increases in value of around 20 per cent.
The report estimates the value of all land in NSW including commercial and industrial properties. In Sydney’s West - a region encompassing Blacktown, Blue Mountains, Camden, Campbelltown, Fairfield, Hawkesbury, Liverpool, Penrith and
The Hills - Mr Gilkes said the strongest increase was in the rural sector where land values increased by 31 per cent in the 12-month period.
“This was due to a significant number of rural properties being in growth centres on land to be rezoned for urban purposes, driving high demand for remaining rural land,” he said.
The greatest overall increase in land values was felt in Camden where the total value of all property types increased by 20.9 per cent.
Mr Gilkes said that strong growth was driven by the development of new housing estates, the redevelopment of Narellan Town Centre, the proximity to the proposed South West Rail Link and the widening of key traffic routes like Camden Valley Way and Bringelly Road.
Residential land in Sydney’s west also increased strongly by 15.1 per cent. The greatest increase was in Penrith (19.8 per cent), followed by Campbelltown (18.8 per cent), Liverpool (17.3 per cent) and Camden (16.8 per cent).
Mr Gilkes said the upward trend in land values in Penrith was mainly to the high demand for more affordable properties and improvements to infrastructure.
Camden and Liverpool recorded the highest increases in commercial land values in the region, rising by 24.5 per cent and 19 per cent respectively.
The highest increases in industrial areas were in Campbelltown (44.6 per cent) and Camden (37.8 per cent) which Mr Gilkes said offered more affordable sites with access to good transport links.
Macarthur based real estate agent Jake Alchin said many new buyers had moved from out of the area and were attracted by Camden and Campbelltown’s affordable prices.
“Campbelltown has also just been rezoned for high rise so that is really changing the dynamic here as well. In a few years it could resemble a mini Parramatta,” the director of Macarthur United Real Estate said.
In Parramatta, which is part of the Sydney Central region, overall land values rose by 15.5 per cent because of strong increases in sale prices within the suburb’s residential, commercial and industrial markets. Mr Gilkes said the rise reflected the demand for housing close to public transport, road infrastructure and the CBD. He said there had been “very strong demand” for high density sites especially within the town centre.
Raine & Horne Liverpool director, Vince Labbozetta, said Liverpool had much to offer buyers including a new university, upgraded hospital, road infrastructure and an impending airport so it was little wonder it recorded a 19 per cent growth rate in land value.
However, he warned the market had since plateaued and suggested next year’s land values would tell a different story.
The Australian Property Institute also recently said residential property prices had declined nationally, dragged down by Sydney which had recorded its biggest fall in two years.
The land value figures are used by councils to calculate rates however councils are currently using 2016 values for rating.
To see how your area performed, visit www.valuergeneral.nsw.gov.au.
Best performing areas overall
• Camden 20.9%
• Hawkesbury 19.8%
• Penrith 19%
• Liverpool 19%
• Campbelltown 18.7%
How the suburbs rated
Blacktown: The strong increase was driven by high demand for land that was affordable compared to the broader Sydney market. Other local drivers included the widening of Richmond Road, the staged upgrade to Schofields Road and the construction of the Sydney Metro Northwest railway.
Camden: The upward trend was driven by the proximity of the South West Rail Link and the proposed Badgerys Creek airport.
Campbelltown: Significant local drivers were urban renewal around seven train station precincts and the widening and improvement of major arterial roads.
Liverpool: Strong increases for residential sites at Wallacia, Luddenham and Bringelly due to the proposed Badgerys Creek Airport which will see increased demand for housing and services.
Penrith: The upward trend was mainly driven by high demand for more affordable properties. Very strong increases in properties closer to Penrith CBD.
The Hills Shire: The strength is driven by a good supply of land for residential subdivisions. Other significant drivers are North West Rail Link and upgrading of the arterial road network.
Hawkesbury: This increase was seen more in major residential centres like Windsor and Richmond, especially South Windsor where there was potential for small-scale development on larger lots.
Blue Mountains: The strongest increases were in Blackheath, Faulconbridge, Hazelbrook, Katoomba, Lawson and Springwood which have good access to services, the Great Western Highway and the railway line.
Fairfield: Strong increase in residential land values reflecting the demand for housing near public transport, road infrastructure, major business and retail centres. High demand for properties that could accommodate a second dwelling such as a granny flat.
Parramatta: Increased values reflect a strong demand to be close to transport and a growing CBD culture around new infrastructure.
