THE total land value for the Hunter region increased over the 12-month period to July 1, 2016, by 8.7 per cent from $118.57 billion to $128.84 billion.
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But, Muswellbrook, Singleton and Upper Hunter LGAs (local government areas) bucked the trend, according to NSW Valuer General Simon Gilkes.
“Decreases were experienced in land values in and around the Hunter coalfields due to the downturn in the coal mining industry,” he said.
“Muswellbrook (-5.3%), Singleton (-2.9%) and Upper Hunter (-3.1%) LGAs all experienced decreases.
“Residential properties experienced the largest increase in land values with an overall increase of 9.8 per cent.
“Residential land in coastal areas such as Newcastle (13.2%), Wyong (12.7%) and Gosford (10.2%) LGAs saw strong increases.
“These areas have experienced strong demand, and infrastructure projects like the upgrade of the Central Coast Highway and Hunter Expressway are continuing to have a positive influence on land values.
“Commercial land values in the Hunter also increased moderately by 6.6 per cent.
“Renewed interest in mixed use sites allowing high rise residential development had a positive influence on commercial land values in Newcastle (14.3%), with strong increases also experienced in Lake Macquarie (13.0%).
“Industrial land values across the region increased slightly by 3.5 per cent.
“The strongest increase was experienced in the former Wyong LGA (8.7%) with the largest decrease in Singleton (-11.3%).
“Rural land values for the region increased slightly by 3.1 per cent.
“Moderate increases were experienced in larger broad acre holdings.
“Lake Macquarie showed a strong increase of 10.7 per cent, influenced by high demand for hobby farms and rural home sites.”
Mr Gilkes said when determining land values, property sales were the most important factor considered.
“Land values do not include the value of the home or improvements to the land,” he explained.
“Land values are one factor used by councils to calculate rates.
“Changes in land value don’t always mean a change in council rates.
“Each council develops a revenue policy, which is used to determine rates charged to fund community services.
“Councils make their draft revenue policy available for public comment.”
From July 1, 2017, land values will also be a factor used to calculate the Emergency Services Property Levy (ESPL), which will replace the current levy on property insurance.
The levy will help fund fire and emergency services across NSW.
Landholders will receive a Notice of Valuation showing their land value before it is used by council for rating.
This gives landholders time to consider their land value.
Landholders can find more information about their Notice of Valuation at www.valuergeneral.nsw.gov.au or by calling 1800 110 038.
Those who are concerned about the land value recorded on their Notice of Valuation have 60 days to lodge an objection.
The last date to object is printed on the Notice of Valuation.
