Western Sydney land value surges to 47 percent and 20 percent growth in a year
Western Sydney is seeing a surge in land values which can be great news for landowners and home owners. NSW Valuer-General released figures on Thursday revealing that the city's west posted the strongest gains.
The figures also showed that the total land value throughout the state went up to $1.34 trillion in the previous year. Sydney's west saw considerable increase in residential land value thanks to the massive stream of infrastructure construction, according to the Australian Financial Review.
Consequently, Blacktown, which is just around 42 kilometres to Sydney's west, also recorded the highest growth rates in terms of land values at 47 percent for 2014-2015. Holroyd and Parramatta trails behind, posting 38 percent and 25.9 percent growth rates, respectively.
Valuer General Simon Gilkes explained that considerable improvements in the transport infrastructure coupled with low interest rates drove the increases. "It seems to match up with areas that were the more affordable suburbs," said Gilkes via ABC. "In recent years, it's been some of the higher valued areas, in closer to the city, that have had the greatest increase."
"That now seems to have flowed out to the more affordable suburbs."
Western suburbs Fairfield and Auburn saw growth as well at 30 percent whereas Liverpool posted also nearly 30 percent. Hill Shire saw as much as 31.8 percent growth rate while both Campbelltown and Camden in the south-west saw land value increase over 20 percent.
"These increases have been fuelled, in part, by major improvements to transport infrastructure, along with historically low interest rates. The market has also been supported by increased land supply through major new land releases and increases to permitted residential densities in many areas," AFR quoted Gilkes.
Demand for residential close to good transportation posted the strongest demand whereas a number of commercial lands in entertainment areas lose their value because of late-night trading laws. However, whereas land values can suggest the rates for landholders, it is still important for councils to look into other factors affecting settings rates, according to Gilkes.
