Land values on the Central Coast increased by 43.3 per cent in the 12 months to July 1, 2021, with the Peninsula recording exceptional growth in the residential and commercial sectors.
The Central Coast LGA rise exceeded the Hunter/Central Coast combined regional rise of 36.6 per cent and the state-wide increase of 24 per cent.
Latest land values issued by NSW Valuer General David Parker reveal the largest rise in the region was in the residential sector (45.4 per cent), followed by commercial (34.7 per cent), rural (29.7 per cent), industrial (23 per cent) and other (34.8 per cent).
In the residential sector, beachside suburbs, which offer the highest lifestyle amenity, experienced the most significant increases in land values, with Patonga one of the most significant.
Other areas recording greater than average growth included the suburbs forming the Peninsula area including Woy Woy, Ettalong Beach, Umina Beach and Booker Bay.
The Valuer General’s report said the upward trend in land values in the region was largely driven by record low interest rates.
“Strong demand was particularly significant for residential property due to the lower cost of finance coupled with changing perceptions and lifestyle factors triggered by the COVID-19 pandemic,” it said.
“More flexible working arrangements and a focus on lifestyle have increased the Central Coast’s appeal, along with better property affordability in comparison to Sydney metropolitan.
“Strong demand for properties that offer good amenity including prestige properties was evident.
“Despite the Central Coast being in pandemic lockdown for much of mid-2021, local real estate agents have continued to actively sell property during 2021 with increasing prices.”
Despite the disruption to commerce caused by the pandemic, demand has been very strong for commercial property in the region.
Established neighbourhood shopping areas such as Umina Beach and Ettalong Beach showed the largest increases in values and were consistent with the growth trajectory of surrounding residential land in those areas.
Valuer General David Parker said while land values reflect the value of land only, property sales are the most important factor valuers consider when determining them.
“Land value is the value of the land only and does not include the value of a home or other structures,” he said.
“Private contract valuers with expertise in their local areas consider a range of factors in determining land value, including the features of the land and its legally permitted use.
“Valuer General NSW has quality assured the land values for fairness and consistency.”
Parker said Revenue NSW will use the latest land values to calculate land tax for the 2022 land tax year with registered land tax clients to receive a land tax assessment from late January.
More information can be found at visit https://www.valuergeneral.nsw.gov.au.