A new report has revealed that land values across the Illawarra region generally increased in the 12 months to July 2018.
Land values for the Illawarra were released this week by the Acting NSW Valuer General, Michael Parker.
The land values reflect the property market at July 1, 2018.
Mr Parker said property sales are the most important factor considered by valuers when determining land values.
The July 1, 2018 land values for Shellharbour, Wollongong and Kiama were based on the analysis of more than 1800 property sales.
“It is important to note that land value is the value of the land only, and does not include the value of a home or other structures,” Mr Parker said.
In the latest report, the Illawarra is comprised of the local government areas of Kiama, Shellharbour, Shoalhaven, Wingecarribee, Wollondilly and Wollongong.
The total land value for the Illawarra region increased strongly over the 12-month period to July 1, 2018 by 14.6 per cent, from $91.8 billion to $105.3 billion.
The Shoalhaven had the strongest overall increase in land values (20.1 per cent).
“Demand was generated from expanded naval operations at HMAS Albatross and improvements to the Princes Highway,” the report said.
Residential land values showed a 15.1 per cent increase overall, reflecting strong demand.
According to Mr Parker, Kiama (18.5 per cent) and Wollongong (17.1 per cent) showed strong increases in land values, with demand for residential property reflected in strong residential sales prices and increased activity in the construction of residential apartments.
The report said commercial land values overall increased by a moderate 9.4 per cent in the region.
Commercial land values were steady in Shellharbour (0.5 per cent); increased moderately in Kiama (5.3 per cent); and strongly in Wollongong (10.4 per cent) and Shoalhaven (16.9 per cent).
Industrial land values indicated a strong increase of 14.3 per cent overall in the region.
Moderate industrial land value increases were experienced in Wollongong (9.6 per cent) and Shellharbour (9.9 per cent).
Strong increases occurred in industrial land values in Kiama (13.2 per cent) and Shoalhaven (14.6 per cent).
Rural land values also increased, with the largest increase of 30.2 per cent in the Shoalhaven.
Shellharbour (5.6 per cent), Wollongong (8.0 per cent) and Kiama (8.3 per cent) had moderate increases in rural land values.
“The rural sectors in these local government areas are principally rural lifestyle markets,” Mr Parker said.
“Some rural locations are benefiting from upgraded road facilities improving travelling time from Sydney.”
Mr Parker said the July 2018 land values will be used by Revenue NSW for 2019 land tax assessments, for land tax liable clients.
“The 2018 land values will not be used for council rating in the Illawarra area,” he said.