Despite drier than normal conditions experienced by landowners in 2018, the value of rural land has increased significantly across the central west, central tablelands and north west when compared to the previous year, a new report has found.
The Valuer General’s report on NSW land values at July, 1, 2018, found rural land values increased across NSW over the 12 months to 1 July 2018.
The total land value of all rural land grew by 14.3 per cent to $148.3 billion in NSW. The land values were based on the analysis of 8,200 rural property sales across NSW.
Acting Valuer General Michael Parker said in general terms, increases in farm values are a sign of confidence in the rural sector.
The land values have shown a strong increase despite the backdrop of drier than normal seasonal conditions,” he said.
“This can be attributed to the general long term positive outlook for the rural sector and strong commodity prices particularly for wheat and wool. The rural sector takes a longer term view and buyers are aware that seasonal conditions change.”
Of the 19,022 rural properties in the Central Tablelands the total land value at July 1, 2018 was $8,336,786,341, an increase of 15.9 per cent from the previous year.
The Central Tablelands includes the Local Government Areas (LGA) of Bathurst Regional, Blayney, Cabonne, Cowra, Lithgow, Mid-Western Regional, Oberon and Orange.
The report found that despite the dry conditions seen in 2018 strong stock and commodity prices and limited rural properties being offered to market increased demand for rural properties in the Central Tablelands, with land values increasing strongly by 15.9 per cent.
The local government areas of Cowra (26.2 per cent) and Lithgow (20.1 per cent) recorded the strongest increases in land values.
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Strong demand for broad acre rural properties, increased investor demand and limited supply helped rural land values in the Central West region surge 24.1 per cent.
The total 20,649 rural properties in the Central West zone were valued at $13,962,861,853 at July, 1 2018.
The increases varied across the region from 10.1 per cent in the Weddin LGA to 66.8 per cent in Parkes LGA.
There was a strong demand and limited supply of rural hobby farm properties to the north and east of Parkes and strong increases for mixed farming properties in the localities of Alectown and Goonumbla.
There was an 11.2 per cent increase of rural land value in North West, NSW.
Of the 14,124 total properties in the zone, the total rural land value was $15,053,835,344.
The North West LGA includes the towns of Gwydir, Liverpool Plains and Walgett.
Mr Parker said the land values determined by the Valuer General are specifically made to use in the collection of rates and land tax. Rural land is exempt from land tax if it is used for primary production.
While Mr Parker said his role is not to predict future changes in land vales, but to determine land values at a point in time, the 1 July 2018 rural land values were based on the analysis of 8,200 rural property sales across NSW.