There's been a strong increase in both residential and commercial land values in Parkes over a 12 month period and it's been attributed to the shire's central location and close proximity to mines.
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That's according to the latest NSW Valuer General's report, showing statistics for the Central West NSW region between July 1, 2019 and July 1, 2020.
Increases varied across the region's local government areas.
Strong increases were experienced in Parkes by 16.8 per cent, the same as Lake Cargelligo, due to a rise in demand for centrally located properties and those in close proximity to mining developments.
Lachlan too had a 15.7 per cent increase in demand for properties.
The figures follow Domain's House Price Report from January 29, revealing Parkes having the second largest jump in median house prices in the state, behind Byron Bay, over the last 12 months.
The total land value for the Central West has increased by seven per cent between this period, taking figures from $21.1 billion to $22.6 billion.
The Valuer General, Dr David Parker, found residential land values in the region increased slightly overall by 4.9 per cent.
Overall, commercial land values in the region remained steady at 0.8 per cent with the exception of Parkes, which experienced a moderate increase of 8.4 per cent supported by several ongoing large projects including the Northparkes copper and gold mine and the Inland Rail development.
Industrial land values in the region also remained steady at 0.8 per cent but with variations reported across different local government areas.
Strong increases were experienced in Forbes (10.7 per cent) and Warren (21.5 per cent) supported by a thriving agricultural sector.
A moderate decrease was experienced in Parkes (-6.8 per cent) which was due to a decrease in demand for larger industrial parcels.
There was a moderate increase in rural land values in the region overall at 7.8 per cent.
Very strong increases were recorded in Forbes (27.9 per cent), with strong increases in Parkes (19.5 per cent) and Weddin (23.5 per cent).
These increases were driven by strong investor and local demand for broad acre rural properties attributed to strong commodity prices and improved seasonal conditions.
Dr Parker said property sales are the most important factor valuers consider when determining land values.
"2020 has been a difficult year for determining land values in the aftermath of last summer's horrific bushfires, followed by the impacts of the COVID-19 crisis," Dr Parker said.
"My office has undertaken separate studies of the impact of both bushfires and COVID-19 on the property market.
"Our valuers have applied the findings of these studies to affected areas and property types where there are insufficient sales available to determine the land values."
These studies can be found at https://www.valuergeneral.nsw.gov.au/publications/reports.
Valuer General NSW has established a dedicated assistance line for landholders impacted by the 2019-20 bushfires, or who believe their land value has been impacted by COVID-19.
Affected landholders are encouraged to call 1800 458 884.
"Land value is the value of the land only and does not include the value of a home or other structures," Dr Parker said.
"Private contract valuers with expertise in their local areas have prepared the July 1, 2020 land values on behalf of the Valuer General, to determine new land values across the region."
Dr Parker said that the valuers consider a range of factors in determining land value including the features of the land and its legally permitted use.
"Valuer General NSW has quality assured the land values for fairness and consistency."
Revenue NSW will use the July 1, 2020 land values to calculate land tax for the 2021 land tax year.
Registered land tax clients will receive a land tax assessment from Revenue NSW from late January 2021.
The public can find more information on land tax at https://www.revenue.nsw.gov.au/
Dr Parker encouraged the public to visit https://www.valuergeneral.nsw.gov.au or call 1800 110 038 for more information on land values and the valuation system.
"The latest land values for all properties in NSW are available on our website, along with information on trends, medians and typical land values for each local government area," he said.
Kelsey Sutor
I've had a love of writing from a young age and, combined with my interest in current events, journalism seemed like a natural fit for me. I like to write a little bit about everything but my true passion lies in finding those untold stories from everyday people. Got an idea? Let me know - kelsey.sutor@austcommunitymedia.com.au
I've had a love of writing from a young age and, combined with my interest in current events, journalism seemed like a natural fit for me. I like to write a little bit about everything but my true passion lies in finding those untold stories from everyday people. Got an idea? Let me know - kelsey.sutor@austcommunitymedia.com.au
