Illawarra land values increased by a greater proportion than land in any other area of the state, according to a new report from the NSW Valuer General.
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In the 12 months to June 30, land values across the region – which takes in six local government areas – went up by 19.2 per cent, to total just under $91 billion.
This compares with a statewide increase of 14.64 per cent, the report released last week says.
Strong Illawarra residential land values drove the large increase, with housing land prices increasing by 21 per cent overall.
The LGAs of Wingecarribee and Shoalhaven (included in the Illawarra) had the biggest jumps, of 24.4 per cent, while Kiama was the weakest performer, rising 11.3 per cent. Across the state, residential land values increased by 14 per cent.
In the Illawarra, industrial land values performed the worst of all categories, rising 9.1 per cent.
This was dragged down by the small increase of 3.5 per cent in Wollongong, where the Valuer General said “the on-going transition from its traditional manufacturing base saw demand for heavy industrial sites weakening”.
“However, demand for light industrial properties by owner occupiers remained steady,” the Valuer General said.
Commercial land values in Wollongong saw significant increases in excess of 15 per cent, particularly in the commercial core and in areas permitting higher density mixed use development.
A 12.7 per cent jump in “other” land categories was partially driven by an increase in the value of coal mines. However this was due to a change in the way the Valuer General calculates coal mine value, rather than market factors.