Land values in the Hunter region increased by more than 30 per cent from July 2020 to July 2021, according to a report released by the NSW Valuer General on Tuesday, January 18.
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Dr David Parker, the NSW Valuer General, said total land values for the Hunter region, which includes Cessnock, Dungog, Maitland, Muswellbrook, Singleton and Upper Hunter LGAs, increased by 30.2 per cent while residential land values experienced a "very strong increase of 32.9 per cent".
"Changing perceptions and lifestyle factors, including more flexible working arrangements, have increased the appeal of regional areas as a place to live," Dr Parker said.
"Maitland has been in demand due to its proximity to a variety of services, including Green Hills shopping centre and the new Maitland Hospital as well as good access to Sydney, Newcastle and the Hunter region.
"More moderate increases were experienced in Muswellbrook, which had less rural lifestyle demand from people relocating in comparison to Maitland."
According to the Valuer General's report, there was a strong increase in land values in the Muswellbrook local government area between July 2020 and July 2021, influenced by strong increases in the rural sector (18.9 per cent) and moderate increases in the residential (5.2 per cent) and commercial (8 per cent) sectors.
In the Upper Hunter LGA, the report found there was a "strong increase in land values" influenced by strong increases in both the residential and rural sectors.
Land values rose by a total of 18.3 per cent in the Upper Hunter, with residential (12.9 per cent), commercial (9.5 per cent), industrial (6.3 per cent) and rural (20.5 per cent) land values all experiencing increases.
Meanwhile Dr Parker said rural land values in the wider Hunter region increased "very strongly" by 30.9 per cent.
"There was strong demand from city based purchasers looking to relocate to rural properties that are lifestyle in nature," Dr Parker said.
"Some of the strongest increases were experienced by smaller rural holdings in Pokolbin, which encompasses rural lifestyle properties, vineyards, wineries and short term accommodation.
"Rural land value increases in the region can also be attributed to the continuation of good seasonal conditions since the beginning of 2020, low interest rates and generally good commodity prices."
Dr Parker said property sales are the most important factor valuers consider when determining land values.
"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 1 July 2021 land values on behalf of the Valuer General, to determine new land values across the region.
"The valuers consider a range of factors in determining land value, including the features of the land and its legally permitted use."
Revenue NSW will use the 1 July 2021 land values to calculate land tax for the 2022 land tax year.
Registered land tax clients will receive a land tax assessment from late January 2022 and more information on land tax can be found at the website of Revenue NSW.