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><span style="line-height: 1.3em;">Vacant land sale prices over the 2014-2015 financial year increased by 6% across the combined capital cities, according to CoreLogic RP Data.</span></p>
<p><span>CoreLogic RP Data's Property Pulse found for the 25 years to June 2015, combined capital city median vacant land prices increased by 417% and by 422% across the combined regional areas.</span></p>
<p><span>CoreLogic RP Data research analyst Cameron Kusher said the median lot size for capital city vacant land has seemingly hit a trough having been relatively stable over the past two years - meanwhile lot sizes have trended higher over the past year in regional areas.</span></p>
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<p><span>“With higher prices and fairly steady land areas, the rate per square metre of land has continued to rise over the past year across the combined capital cities while it has fallen in regional markets,” he said. </span></p>
<p><span>"Our research shows that median lot sizes have been reasonably stable across the combined capital cities over the past twelve months. In regional markets, it has actually risen by 8.3% over the past year. </span></p>
<p><span>“On a rate per square metre basis, vacant land in Sydney and Perth is much more expensive than all other capital cities. The rate per square metre has generally risen over the past year.” </span></p>
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<p><span>The report noted v</span><span style="line-height: 1.3em;">acant land prices are much higher than all other capital cities in Sydney, with the cost of vacant land has risen sharply over the past year in Sydney, Melbourne and Perth.</span></p>
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mick.cee-iDmgDDAmu8

Capital city land prices keep rising: CoreLogic RP Data

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<p>AMP Capital’s Global Direct Property Fund (GDPF) offloaded a multifamily development land parcel in Tampa, Florida for US$11.5 million, delivering an annual return of 58.1 percent over the holding period.</p>
<p>The site was acquired for US$2.5 million in February 2013. The fund’s US investment strategy focuses on acquiring middle-market assets (around $25-65 million).</p>
<p>Located at the southern end of the Tampa CBD on Harbour Island, the multifamily development land parcel is zoned for 340 high-rise residential units.</p>
<p>GDPF purchased both the land parcel and the adjacent class A office building from two different vendors, hoping to unlock the maximum value from the acquisitions.</p>
<p>AMP Capital subsequently sold the land parcel to a US residential developer together with rights to use up to 560 excess parking spaces from the adjacent office building, to be connected via a sky-bridge to be built by the developer.</p>
<p>The fund has retained the office building, hoping to profit from its leasing program and a cyclical recovery in the Tampa office market.</p>
<p>AMP Capital Fund Manager Tim Fallet said that investors had benefited from its disciplined strategy.</p>
<p>“This transaction demonstrates the fund’s entrepreneurial and disciplined approach with a focus on acquiring real estate at a compelling entry price, aggressive business plan execution and strategic marketing to buyers. Over the last five years the fund’s US portfolio has delivered a return of 19.8 per cent per annum," Fallet said.</p>
<p>“We continue to see a strong pipeline of attractive core-plus investment opportunities in select submarkets and sectors across the US where we will look to deploy this capital.” </p>
<p>The fund plans a further round of capital raising.</p>
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prateek24-ezbwHMbNAk

AMP Capital's property fund sells Florida site for US$11.5 million, says annual return 58%

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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>
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<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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jonathanchancellor-7SQnKwU6yx

Milton residential land values jump 46 percent: Valuer-General

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<p>The total land value for the Riverina region has increased over the 12 month period to 1 July 2016 by 9.1% from $13.24 billion in 2015 to $14.44 billion in 2016, according to the latest report from the Valuer-General.</p>
<p>The Report on NSW Land Values at 1 July 2016 found that overall land values in the region showed a moderate increase.</p>
<p>Exceptions to this trend were the LGAs of Lockhart (18%), Griffith (13.1%), and Bland (18.1%) where land values increased strongly.</p>
<p>The former LGAs of Gundagai (1.6%) and Murrumbidgee (-1.3%) remained stable overall.</p>
<p>The largest increase in land values in the region was for rural properties, with an overall increase of 11.6%.</p>
<p>The LGAs of Bland (20%), Carrathool (19.7%) and Lockhart (19.5%) experienced the strongest increases.</p>
<p>There was a recent sale of the <a href="https://www.realestate.com.au/property-mixed+farming-nsw-carrathool-7844346" target="_blank">Carrathool farm</a>, Haylock and Katika at an undisclosed price.</p>
<p>Residential land values showed moderate increases overall, however there were strong increases in the Griffith LGA (18.1%), while Coolamon (7.4%) and Junee (7.4%) LGAs experienced moderate increases.</p>
<p>Land values in Murrumbidgee (-8.5%) decreased moderately as supply over the period exceeded demand.</p>
<p>Land values for commercial land increased moderately overall by 5.2%.</p>
<p>Temora (14.6%) and Gundagai (14.4%) LGAs showed the strongest increases due to strength in the local rural and tourism industries.</p>
<p>Industrial land values for the region have remained steady.</p>
<p>Exceptions to this trend were seen in Temora (10%) and Junee (8.1%), which both experienced moderate increases resulting from demand by industries supporting the rural sector.</p>
<p>There were also smaller increases of around 5% in Griffith and Cootamundra.</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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Riverina rural prices up 11.6%: NSW Valuer-General

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<p>The total land value for the Murray region has increased over the 12 month period to 1 July 2016 by 6.6% from $9.13 billion to $9.73 billion, according to the latest report from the Valuer-General.</p>
<p>The Report on NSW Land Values at 1 July 2016 found that overall land values in the Murray region showed slight to moderate increases.</p>
<p>Exceptions to this trend were the former LGAs of Corowa (10.6%) and Urana (14.9%) where land values experienced strong increases.</p>
<p>The largest increases overall were for properties zoned commercial (9.3%) and rural (8.3%).</p>
<p>The strongest increases in commercial land values occurred in Albury (11.9%) and Murray (5.1%) while Corowa and Wakool remained steady.</p>
<p>The strongest increases in rural land values occurred in Albury (13.9%), Corowa (22.2%), and Urana (15.6%).</p>
<p>These increases follow good seasonal conditions and continuing strong commodity prices.</p>
<p>There was an overall increase of 5.2% for residential land values across the region.</p>
<p>There is a small farm with big neo-Federation homestead <a href="https://www.realestate.com.au/property-lifestyle-nsw-corowa-7820802" target="_blank">currently for sale</a> at $690,000.</p>
<p>Burnewang Homestead, which was built in 1991 by Brentnall Homes, sits on 21 hectares with 12 cows/calves currently being carried.</p>
<p>Albury (6.1%) showed the largest increase, influenced in part by increases of up to 16% in the urban growth corridor of Thurgoona.</p>
<p>Industrial land values across the Murray region showed an overall slight increase of 3.9%.</p>
<p>The Albury LGA (4.7%) and former Deniliquin LGA (3.0%) increased slightly, while industrial land values in Berrigan and the Murray River LGAs remained steady.</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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Corowa rural land values up 22%: NSW Valuer-General

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<p>The total land value for the Central Tablelands region has increased over the 12 month period to 1 July 2016 by 4.7 percent from $14.37 billion to $15.05 billion, according to the latest report from the Valuer-General.</p>
<p>The <em>Report on NSW Land Values at 1 July 2016</em> found that residential land values across the region increased slightly by approximately 3.6 percent. The highest increases occurred in the City of Lithgow, which showed an increase of 8.1 percent and Cabonne, which showed an increase of 9 percent.</p>
<p>Demand for well-located commercial property in Orange, particularly by investors, resulted in a moderate increase of 9.5 percent. Industrial land values across the region showed a slight increase of 2.5 percent.</p>
<p>However, industrial land in Cowra showed an increase of 10.4 percent, while industrial land in Oberon showed an increase of 14.8 percent due to a limited supply of industrial land in established locations.</p>
<p>Strong stock and commodity prices, along with good seasonal conditions, have driven demand in the rural market with values increasing overall by 5.8%.</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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