Residential land values soared by almost 40 per cent in Orange in the 12 months to July 2021, fuelled by tree changers leaving the cities, according to the latest NSW Valuer General's report.
The report shows the total land value for the Central Tablelands - which takes in the local government areas of Bathurst Regional, Blayney, Cabonne, Cowra, Lithgow, Mid-Western Regional, Oberon and Orange, increased by 21.8 per cent between July 1 2020 and July 1 2021, from $21.9 billion to $26.7 billion.
Residential land values saw the biggest growth, up by 24.7 per cent region-wide. By comparison, a rise of just 4.7 per cent was recorded in the year to July 2020.
Orange's residential land values shot up by 39.7 per cent, the largest increase in the region. Cowra followed close behind with an increase of 38.7 per cent.
NSW Valuer General David Parker said the high level of interest from metropolitan buyers seeking alternative lifestyle options in regional areas had helped pushed values up.
"The residential market has experienced a continuing trend of buyers focusing on regional areas in search of greater affordability and preferred lifestyle options," Dr Parker said.
"This green-change, tree-change, sea-change and ski-change has been exacerbated by greater employer flexibility in work locations as a result of home working during COVID."
This exodus from the cities has also underpinned growth in the region's rural land values, which are up by 22.1 per cent.
The strongest increaseswere recorded in Mid-Western Regional (30.2 per cent), Blayney (27.5 per cent) and Orange (25.1 per cent).
"This (treechange) movement combined with low interest rates, strong economic confidence, and low sale listing numbers led to strong increases across all rural lifestyle markets across the region," Dr Parker said.
"Rural land values suitable for primary production experienced strong increases given high commodity prices, low interest rates and favourable seasonal conditions."
Industrial land values across the region experienced a strongincrease of 14.6 percent, led by Cowra (21.8 per cent) and Orange (18.6 per cent), attributed to "a limited supply of industrial land and strong demand from local businesses underpinned by confidence in these highly diversified local economies."
The biggest turnaround in land values was seen in the commercial sector, which rose by 11.2 per cent, after falling by 5.5 per cent in 2020. The largest increases were seen in Mid-Western Regional (22.2 per cent) and Orange (14.1 per cent).
The growth in commercial land values was "mostly attributable to the strong demand from the health, tourism, manufacturing, and mining sectors, as well as returned market confidence following the effects of COVID-19," Dr Parker said.
Revenue NSW will use the July 1 2021 land values to calculate land tax for the 2022 land tax year.
Central Tablelands land values, July 2021
- Residential: +24.7%
- Rural +22.1%
- Industrial +14.6%
- Commercial +11.2%
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