Sydney’s West is becoming more valuable
Sydney saw a great surge in its land values in the previous year but its western region achieved the strongest gains according to a recent article in the Sydney Morning Herald.
According to the NSW Valuer General, total land value throughout the region went up to $1.34 million in the past year. Sydney’s council areas posted 10 percent increase in their land values with Blacktown recording the fastest increase. Furthermore, there is an also a 47 percent increase in the median value of residential plots.
“We’ve got attractive things, but affordability would still have to be the main factor,”Sydney Morning Herald quoted said Terry Comino, principal of Ray White Blacktown.
“It’s the go-to place if you haven’t got enough money to go to the other places,” added Comino. It is important to note that NSW Valuer General did not cover values of buildings or homes on land. Nonetheless, these still account for the computation of council rates and land taxes.
NSW Valuer-General Simon Gilkes explained that a number of reasons why land values increased in the region are because of the traditionally low-interest rates and infrastructure improvements.
“The market has also been supported by increased land supply through major new land releases and increases to permitted residential densities in many areas,” explained Gilkes.
For instance, Parramatta and Holyroyd land values increased by as much as 36 percent and 38 percent respectively. Fairfield, Auburn, Canada Bay, the Hills Shire and Randwick land values posted over 30 percent increase. Inner north and east still continue to have the most valuable land in the region.
In line with this, David Borger, Sydney director of the Sydney Business Chamber, also explained how the properties in the central suburbs are losing their values.
“Take North Parramatta – 10 years ago there were no supermarkets and no bottle-shops in North Parramatta, now there are lots,” said Borger.
“I think that reflects the fact that there’s density in those places now, there are more people with wallets, looking to spend.”
Gilkes added that on top of landholders using the land values to set the rates, councils may have to take into account other factors when it comes to setting rates.
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