Blue Mountains residential land values have jumped by 16.6 per cent in a year

Blue Mountains residential land values have jumped by 16.6 per cent in a year, outstripping the rest of the Sydney West region.

Blaxland, Blackheath, Faulconbridge and Mount Victoria saw some of the largest increases in figures released last week by the Acting NSW Valuer General.

The neighouring Hawkesbury local government area experienced a rise of only 3.4 per cent in residential land values in the same period. Penrith saw a rise of 3.1 per cent.

The total land value for the Sydney West region increased by 5.4 per cent between July 1, 2017 and July 1, 2018. 

“The strong increases in land values [in the Blue Mountains] were attributed to good demand for properties across residential, industrial and rural zoned land, the completion of the Great Western Highway upgrade and improvements to rail infrastructure on the Blue Mountains line which have improved accessibility for transport and commuters across the local government area,” the Valuer-General’s report stated.

Land values for environmental zoned residential properties in Winmalee and Yellow Rock have remained steady. “This is due to the location on the north eastern fringe of the local government area and being further away from the Great Western Highway, public transport and amenities,” the report stated. 

But very strong increases in land values were shown at Mount Victoria, credited to the completion of the Great Western Highway upgrade.

The increase in commercial land values in the Blue Mountains was slower at four per cent. Business zoned properties in Blackheath and Mt Victoria were the exception, showing larger increases.

Acting NSW Valuer General, Michael Parker, said property sales are the most important factor considered by valuers when determining land values.

“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,” he said.

The new set of data, which was calculated based on what the land was worth on July 1, 2018, will be used by Revenue NSW to calculate land tax. It will not affect council rates this year. Most councils, including Blue Mountains, will continue to use land values calculated at July 2016 for rating.

All councils are scheduled to receive new land values from July 1, 2019. These values will be used to determine rates for the 2020/2021 period.