New figures released by NSW Valuer General, Simon Gilkes, showed land values in the Hunter region, which includes Central Coast and Lake Macquarie, had experienced strong growth in the 12 months to July 1 last year with total land values increasing by 14.6 per cent.
The greatest demand, he said, was in the Central Coast and Newcastle local government areas which saw the strongest land value increases of 18.1 per cent and 16.1 per cent respectively.
The report estimates the value of all land in NSW including commercial and industrial properties. Commercial land values in the region rose by 10.5 per cent, driven by investment in infrastructure and the construction boom in Newcastle.
Of the Central Coast, Mr Gilkes said the region’s accessibility to the Sydney/Newcastle freeway and the market’s value for money compared to Sydney saw a rise in demand from out of area buyers.
“The land value increases were largely driven by strong local demand and competition from out of area buyers, and affordability of land in comparison to the Sydney market for similar property,” he said.
“Another significant driver was the ongoing main road upgrades improving access to and throughout the region.”
Mr Gilkes said the Central Coast’s relative affordability had seen buyers move from Sydney to enter the property market which had, in part, driven up land values.
“The development of land in new housing estates continues to provide a low base for entry level buyers, whilst the limited supply of homes for sale in established areas adds to the competition pressure for purchasers,” he said.
Residential land values in Green Point, Point Clare, Tascott, Koolewong, Blue Bay, Toowoon Bay, Noraville, Norah Head and The Entrance showed slight increases while residential land values in Daleys Point remained steady.
Values through the roof
LJ Hooker Terrigal principal, Tim Andrews, said property prices in some of these areas had “shot through the roof” because of the proximity to the expressway
“Stock is still very tight and I don’t see that freeing up any time soon,” he said. “Everything off the plan is selling and there is very little land available to buy. What we’re seeing in some areas is people buying old houses to knock down and rebuild.
“Why wouldn’t you move here? You can buy a house for the same price as in Western Sydney but you have the coastline and the relaxed lifestyle. They are two very big driving factors for land values going up.
“All we need now is a regional airport and then you will see this place go gangbusters.”
Mr Gilkes described the increase in commercial land values across the Central Coast as “moderate”, adding low interest rates, increased demand, improved returns and strengthening rents had helped strengthen the sector.
Business park land at Tuggerah showed a moderate decrease in value while commercial core land values at Wyong were steady.
The affordable areas in the west and north west including Morisset, Cooranbong, Boolaroo, Glendale and Edgeworth experienced strong demand. The new Beaches Estate at Catherine Hill Bay also saw increases.
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 Central Coast suburbs
• Green Point.
• Point Clare.
• The Entrance.
