Land Values

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<p>Will Rogers probably didn't have Sydney's inner west in mind when he famously said "don't wait to buy land; buy land and wait", but it would have been an apt observation if this has been the case.  </p>
<p>The New South Wales Valuer General reported that total land values had risen yet again by 11.3 percent in the 2016 financial year to $1.5 trillion.</p>
<p>The value of the state's land is up by more than 57 percent in only four financial years.</p>
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<br><div>Unsurprisingly the gains were driven by residential land values which rose by 11.1 percent to $1.2 trillion.</div>
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<div><strong><span style="text-decoration: underline;">Inner west land pressures</span></strong></div>
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<div>Caution should always be exercised when interpreting residential land value figures, which were calculated from a sample of more than 38,000 sales in the 2016 financial year. </div>
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<div>This is particularly so at the Local Government Area (LGA) level, where median values can be skewed higher by sites with development potential, particularly at this advanced stage in the cycle.</div>
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<div>As usual the most valuable residential land was the in the leafy LGAs of Mosman to the north ($1.84 million median) and Woollahra to the east ($1.82 million) which remain very much the domain of the wealthy, but most of the serious gains have been seen in the inner west of Sydney.</div>
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<div>No fewer than 16 LGAs now have a median residential land value of more than $1 million, which will result in hefty land tax levies. </div>
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<br><div>Not everywhere saw large gains in land values, with often only moderate changes in regional and coastal New South Wales, and the Blue Mountains, for example. </div>
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<span>There were declines too in mining locations. </span><br><span><br></span><span>Broken Hill and the mining areas of the Hunter (the LGAs of Muswellbrook, Singleton, and the Upper Hunter) recorded drops in land values ranging from around 8 per cent to 15 percent.</span>
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<br><div>On the other hand, the greatest gains in the financial year were seen in Burwood, with land values up by no less than 37.5 per cent, a location which saw the sale of a number of development sites in both the centre of the suburb and along Parramatta Road. </div>
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<div>Over the past four financial years there have been crunching gains in half a dozen or more LGAs located to the west of the Sydney Central Business District.</div>
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<br><div>We live in a nominal world, as the saying goes, and when looking at the greatest dollar value increase in median residential land values, top of the pile was Strathfield which has recorded an astronomical increase of $723,000 since FY2012.</div>
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I can't think of anything pithy to say about these numbers, so I'll leave the last word to Will Rogers:<br><br>"Find out where the people are going and buy the land before they get there."<br><br>Indeed.
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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NSW land values rise again to $1.5 trillion: Pete Wargent

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<div>Residential land values soared by more than $1 trillion dollars in Australia over the three years to June, and by more than half a trillion dollars (+15%) in the last year alone. </div>
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<div><span>Since 1989 the total value of land in Australia has surged by well over $4 trillion, with residential use accounting for nearly $3.5 trillion or more than 85 per cent of the increase.</span></div>
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<div><span>Since dwelling prices over the long run are ultimately a derivative of the land value which sits underneath, I always recommend capital city properties as those with the greatest potential for price growth.</span></div>
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<div><span>Particularly I look at those located within easy commuting distance of the Central Business District and with a high percentage land value content, which typically means steering well clear of high rise tower blocks.</span></div>
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<div><span>Since 2012, the biggest paper gains for property speculators have been seen in Sydney, with the total value of residential land in New South Wales spiralling by more than 53% in just three financial years. </span></div>
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<div><span>Victoria has also seen land values increase by 35% over the same time period, with broadly similar gains in land values across the next three most populous states in the 20 -22% range.</span></div>
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<div><span>Of course, population growth accounts for some of the increase in residential land values, and so too does the prosperity of the local economy, the lower cost of capital, and the relative scarcity or availability of the land in question. </span></div>
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<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
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Residential land values soar: Pete Wargent

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<p>Residential land sales have increased by 45.9 per cent from their record low in the March 2019 quarter, according to the February 2020 edition of the HIA-CoreLogic Residential Land Report.</p>
<p>HIA Economist, Angela Lillicrap said, "the first half of 2019 was particularly rough for the residential building industry, with falling house prices, uncertainty surrounding the election and the credit squeeze all weighing on confidence."</p>
<p>“Leading indicators in the final months of 2019 show that the housing market has improved and the increased demand for residential land is further proof of this."</p>
<p>“A shortage of land is one of the factors that has driven home prices to increase over the past decade. With demand for land picking up, it is important that an adequate supply is maintained each year to avoid undue pressure on housing affordability,” concluded Ms Lillicrap.</p>
<p>According to Eliza Owen, CoreLogic’s Head of Residential Research, “Demand for land and dwellings has rebounded strongly from June last year, which is also reflected in a 6.7% rebound in national dwelling values over the past 7 months."</p>
<p>"The strength of the rebound comes from a halved cash rate between June and October last year, the re-election of the Coalition Government providing certainty around negative gearing and capital gains concessions, and ongoing demand for owner-occupier dwellings as the millennial cohort moves through the first home buyer age bracket of 25-34."</p>
<p>"Prices for land and housing are likely to rise further over 2020, though this may be slightly mitigated by higher listing levels coming to market, as sellers take advantage of price increases,” she concluded.</p>
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Demand for residential land is on the rise: HIA

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<p>Victoria is a great place to invest with land prices having soared since 2014, according to a recent analysis BY REIV</p>
<p>Their findings claimed that land values over the past 5 years has confirmed that Victorian property continues to go from strength to strength.</p>
<p>Over the same period, the median property size has dropped slightly, meaning that Victorians are now paying more for less.</p>
<p><img src="https://www.urban.com.au/images/2019/11/14/Melbourne%20PPSQM%201.JPG" alt=""></p>
<p>REIV President Leah Calnan said while sales volumes have declined, continued strong demand in Melbourne has resulted in consistent price growth.</p>
<p>“Melbourne’s outer growth Southeastern and Western suburbs are some of the fastest-growing parts of Australia.” Ms Calnan said.</p>
<p>“17 suburbs across Melbourne have had their land value more than double since 2014.”</p>
<p>“In signs of an improving market, we are again seeing increasing demand from interstate and international purchasers"</p>
<p><img src="https://www.urban.com.au/images/2019/11/14/Melbourne%20PPSQM%202.JPG" alt=""></p>
<p>“Regional Victoria and outer Melbourne experienced a larger drop in median land sizes than those in the city but values continue to increase.”</p>
<p>“People are drawn to water, 4 of the 17 highest growth suburbs are in Mornington Penisula.”</p>
<p>“Location is always important, Middle Melbourne suburbs near the city like Essendon West and Glenroy recorded 125% Growth.”</p>
<p>“In the West, Brooklyn provides great value with a median price of $1,892 per metre squared; competing with neighbouring Footscray or Maidstone," she concluded.</p>
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Melbourne land values soar over 5 years: REIV

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<div>EXPERT OBSERVER</div>
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<div>Melbourne's median lot value increased by another 41 per cent year-on-year to a record $359,000, according to HIA figures. </div>
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<div>That's up from just above $200,000 five years ago.</div>
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<p><span>In Sydney the median lot value sits just below its peak at $469,500.</span><br><br></p>
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<div>Lot sizes have been shrinking over time too.</div>
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<div>Indeed, on a price per square metre Sydney's land price was more than 8 per cent higher than a year earlier. </div>
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<div>A 700sqm block in Kellyville sold for $1,200,000 this week, some 36 kilometres from the CBD and located close to the M7 motorway.<br><br>
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<div>Sales volumes have declined significantly, which combined with rising prices suggests limited availability on the market. </div>
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<div>Overall, it's been another strong decade for land prices.</div>
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<br><em>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</em>
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Melbourne's house and land values continue to rise: Pete Wargent

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<p>The Melbourne land market has performed strongly over the past four years in response to a sustained undersupply, according to BIS Oxford Economics.</p>
<p>Surging population growth supported by improving economic conditions have combined with low interest rates to see underlying demand for dwellings steadily rise.</p>
<p>Initially, land prices were also largely affordable relative to the existing outer Melbourne housing stock, enabling pent-up demand to be released into the market.</p>
<p>Through this period, the numbers of new estates being marketed increased dramatically, with outer Melbourne lot production rising to a record 21,400 lots in 2014/15 and averaging 21,050 lots per annum over 2014/15 to 2016/17. Corresponding land price growth has also seen new house affordability deteriorate.</p>
<p>The significant rise in new land and house activity has been exceeded by new apartment construction, with this sector forecast to enter a modest oversupply from 2017/18, with potential knock-on effects to the new house and land market.</p>
<p>Likely falls in apartment prices may encourage the purchase of apartments instead of houses, while more competitive apartment rents may delay some first home buyers purchasing a new house.</p>
<p>While lot production is likely to hold up over 2017/18, it is expected to fall away over the following two years. Land prices are also expected to flatten out, or even decline as developers offer incentives to purchasers. The downturn is forecast to be brief and moderate, with a rising undersupply forecast to quickly re-emerge and drive the next upturn by the end of the decade. </p>
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Melbourne land performs strongly over past four years: BIS

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<p>The total land value for the Illawarra region has increased over the 12 month period to 1 July 2016 by 10.4 percent from approximately $68.49 billion to $75.59 billion, according to the latest report from the Valuer-General.</p>
<p>The <em>Report on NSW Land Values</em><em> </em><em>at 1 July 2016</em> found that there was an overall increase in land values of 10.7 percent for residential properties. This is slightly more than for Wollongong residential land values which generally increased between 7 percent and 10 percent. The highest increases in the region were recorded in the Wollondilly, Wingecarribee and Shoalhaven areas.</p>
<p>Residential land values in Milton increased by 46 percent due to the area's popularity as a weekend tourist destination and its affordability relative to nearby beachside localities. Similarly,the value of residential land in Hilltop and rural residential land east of Wilton increased by around 40 percent.</p>
<p>Overall, commercial land values in the Illawarra region increased by 8.2 percent. However, commercial land values increased by 36 percent in Tahmoor, and by 58 percent in Appin.</p>
<p>Industrial land values showed an overall increase of 5.8 percent. Land values in the major industrial areas of Wollongong generally showed increases of between 4 percent and 11 percent, while properties in the smaller centres of Bomaderry, Huskisson and Sussex Inlet showed increases of approximately 10 percent.</p>
<p>Rural land values varied across the Illawarra region, but showed an overall increase of 14 percent. Rural land values in the Shoalhaven, Wollondilly and Wingecarribee LGAs were influenced by a growth in residential development and demand for rural small holdings. These areas experienced overall increases of between 11 percent and 21 percent.</p>
<p>Land values in the Tahmoor/Thirlmere locality showed even stronger increases of between 30 percent and 40 percent.</p>
<p>For more information including interactive online land value summaries for all LGAs and 14 regions covering the state go to <a href="https://www.valuergeneral.nsw.gov.au" target="_blank">www.valuergeneral.nsw.gov.au</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/24/nsw-5.jpg" alt=""></p>
<p>Property Observer found a 10 acre lot, <a href="https://www.realestate.com.au/property-residential+land-nsw-milton-201460146" target="_blank">107 Spring Valley Way, Milton</a>, (above) on the market for $695,000. It is fully fenced with tar road access, a dam and underground power.</p>
<p>A parcel of land sized 100 acres, <a href="https://www.realestate.com.au/property-residential+land-nsw-milton-201699910" target="_blank">669B Woodburn Road Milton</a>, (below) has 40 acres of cleared land, 4 large dams, a shed and sealed driveway and is on the market for $895,000.</p>
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Milton residential land values jump 46 percent: Valuer-General

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<p>The total land value for the Western region has increased strongly over the period to 1 July 2016 by 16.4 percent from $2.09 billion to $2.43 billion, according to the latest report from the Valuer-General.</p>
<p>The <em>Report on NSW Land Values</em><em> </em><em>at 1 July 2016</em> found that industrial (15.6 percent) and rural (24.5 percent) land values saw the largest increases, while residential and commercial land values remained generally steady. Good seasonal conditions and high livestock and commodity prices have been the main drivers for land value increases.</p>
<p>Overall residential land values were steady at -1.5 percent. Central Darling (15.2 percent) showed a strong increase in land values while the LGA of Wentworth (7.8 percent) showed a moderate increase. Broken Hill LGA (-11.6 percent) showed a strong decrease due to a downturn in the local mining industry.</p>
<p>Commercial land values remained steady across the region, with the exception of Central Darling which showed a significant increase. The increases in Central Darling (155 percent) are generally small in dollar terms for example, increases in land values from around $900 to $2200.</p>
<p>Industrial land values showed strong increases of 15.6 percent across the region, with the exception of Wentworth LGA (4.8 percent), which showed a slight increase, Bourke LGA which remained steady and Cobar LGA (-10 percent) which showed a moderate decrease.</p>
<p><span style="font-size: 12.16px;">Rural land values for the Western region increased by 24.5 percent. The exceptions were Balranald (2.0 percent) and Wentworth (4.8 percent) LGAs, which only increased slightly and Broken Hill, which remained steady.</span></p>
<p>For more information including interactive online land value summaries for all LGAs and 14 regions covering the state go to <a href="https://www.valuergeneral.nsw.gov.au" target="_blank">www.valuergeneral.nsw.gov.au</a>.</p>
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Mixed story for Western land values despite strong growth: NSW Valuer-General

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<p>The total land value for the Northern Tablelands region has increased over the 12 month period to 1 July 2016 by 9.5 percent from $7.42 billion to $8.13 billion, according to the latest report from the Valuer-General.</p>
<p>The Report on NSW Land Values at 1 July 2016 found that rural properties showed the highest overall increase of approximately 11.4 percent. Good seasonal conditions together with strong commodity prices for beef and lamb have been the main drivers for strong increases in rural land values in the region. Inverell LGA showed the strongest increase (20.3 percent), while the lowest growth was experienced in the Walcha LGA (7.9 percent).</p>
<p>An Inverell farm currently for sale is <a href="https://www.realestate.com.au/property-mixed+farming-nsw-inverell-7869918" target="_blank">Seven Oaks</a> (above), 280 acres along the banks of the gushing Frazers Creek, at $599,000 through Ruralco.</p>
<p>Residential land values increased by 6.2% overall. The highest increases were in the LGAs of Uralla (12.1 percent), Inverell (7.7 percent) and Armidale (7.2 percent), whilst Walcha (-4.9 percent) and Glen Innes (-2.1 percent) showed a decrease in value.</p>
<p>Commercial land values across the region generally remained steady. The strongest increase occurred in the LGA of Uralla (16.8%). However, commercial land values decreased in the LGAs of Walcha (-5.3) and Glen Innes (-2.4%) reflecting lower demand for commercial property in these areas.</p>
<p>Industrial land values for the region have generally remained steady. The strongest increase was experienced in Uralla (9 percent), with the largest decrease in Walcha (-5 percent).</p>
<p>For more information including interactive online land value summaries for all LGAs and 14 regions covering the state go to <a href="https://www.valuergeneral.nsw.gov.au/" target="_blank">www.valuergeneral.nsw.gov.au</a>.</p>
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Beef and lamb prices nourishing Northern Tablelands rural prices: NSW Valuer-General

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<p>The total land value for the South East region increased only slightly over the 12 month period to 1 July 2016 by 2.6 percent from approximately $26 billion to $26.67 billion, according to the latest report from the NSW Valuer-General.</p>
<p>The Report on NSW Land Values at 1 July 2016 found that there was an overall increase in land values of 2.7 percent for residential properties. The largest increases in residential land values were seen in the former council areas of Palerang, 5.1 percent, and Snowy River, 6.1 percent.</p>
<p>Overall, commercial land values increased slightly by 2.4 percent. However, commercial land values in the Goulburn Mulwaree Council area showed moderate increases of 7.4 percent, with investors and owner occupiers competing for the limited number of properties on the market.</p>
<p>Industrial land values generally remained steady across the region. Exceptions to this trend were seen in Yass Valley Council and the former council area of Palerang, where values increased by approximately 10 percent, as well as in Upper Lachlan Shire Council, where the total industrial land value fell by 6.2 percent.</p>
<p>Rural land values showed an overall slight increase of 2.6 percent, influenced by strong stock and commodity prices and good seasonal conditions.</p>
<p>For more information including interactive online land value summaries for all LGAs and 14 regions covering the state go to <a href="https://www.valuergeneral.nsw.gov.au" target="_blank">www.valuergeneral.nsw.gov.au</a>.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/02/01/nsw-11.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/01/nsw-11.jpg" alt=""></p>
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