North West land values soar over past year but industrial and commercial land remains 'steady'

The NSW Valuer General Dr David Parker's latest report covering land valuations from July 1, 2020 to July 1, 2021 shows a 13 per cent increase in total land value for the North West region.

Covering Gunnedah, Gwydir, Liverpool Plains, Moree Plains, Narrabri, Tamworth Regional and Walgett, the report shows land values rose from $23 billion to $26 billion during the 12 month period.

Rural land in the Liverpool Plains had the biggest increase at 16.9 per cent, followed by Narrabri with 15.9 per cent and Gwydir at 14.5 per cent.

Tamworth also experienced a 10.7 per cent increase off the back of favourable seasonal conditions, historically low interest rates, good commodity prices and strong demand for good quality properties.

That trend continued for residential land values, with "tree changers" being blamed for the five per cent jump seen in Tamworth.

Burke & Smyth Real Estate Tamworth director Jason Wherritt said it's the larger lots on the outskirts of town which are being snapped up and have seen the biggest increase in value.

"Windmill Downs, Moore Creek Gardens, Forest Hills area, which are half acre to one acre lots - they have the highest vacant land value on new estates," he said.

"Land at Windmill Downs is now selling for $200,000, compared to a couple of years ago when it was selling for around $170,000 to $180,000."

Windmill Hill and Redbank Estate on either side of Tamworth have also experienced significant increases in value, he said.

READ ALSO:

Mr Wherrit said over the past year people moving from metro areas to regional areas, coupled with improved water supply and government stimulus to get the building industry back on track, has driven the increase.

"Construction in the region was extremely slow and basically at a standstill at the back end of the drought pre COVID. Builders were very quiet. There was land around but the demand wasn't there," he said.

"Since COVID it's just been a massive influx and it still seems to be flowing along nice and strongly."

However, when it comes to commercial land values in the region, there has been only a "steady" 0.9 per cent increase.

The steady trend was consistent in Gunnedah, Liverpool Plains, Narrabri and Tamworth, with the exception of Moree which had a slight 2.8 per cent rise due to stronger demand for smaller commercial sites.

Industrial land values also remained steady with the report stating "limited demand for sites in the industrial subdivision west of Peel Street which do not have formed road access" attributed to the trend.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: