Land values released last week show a strong increase in Cowra Shire land values between 2017 and 2018.
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,” Mr Parker said.
As the Cowra Shire is a predominantly rural area movements are strongly influenced by rural markets.
The rural sector showed a very strong increase in value levels with continued strong demand and limited supply. The industrial sector also exhibited a very strong increase in values, whereas the commercial sector indicated steady value levels.
The residential area exhibited a moderate increase in values with continuing good demand.
According to the report from the NSW Valuer General residential land values increased 8.4 per cent with continuing good demand and a shortage of supply of rural residential properties close to Cowra.
The central residential areas of Cowra saw stable value levels due to limited demand.
Small villages such as Gooloogong, Wyangala and Wattamondara, have seen limited demand which has led to stable values.
Land values in Lyall Street, according to the report, jumped 6.6 per cent, Kite Street 2.9 per cent, Comerford Street 4.5 per cent, Yaldara Crescent 4.6 per cent and Whitby Street 3 per cent.
There was no increase in commercial land values.
Industrial land values have seen a very strong increase of 35 per cent, however this was not a consistent move across the sector.
Industrial land values in Brougham Street jumped 7 per cent, on North Logan Road 17 per cent and along the Young Road 37 per cent.
Generally the industrial market in Cowra has stabilised as investor demand has decreased.
There has however been a distinct change in focus as the fringe industrial areas fronting Young and Grenfell Roads from industrial to a more bulky goods service area.
This has led to a very strong increase in value in these areas.
There has been a very strong 26 per cent increase in rural land values in Cowra local government area with continuing strong demand for broad acre rural properties on the back of strong commodity prices and increased investor demand, coupled with a shortage of supply.
Along George Russell Drive values jumped 30 per cent, Rivers Road 10.4 per cent, Darbys Falls Road 15.4 per cent, the Lachlan Valley Way 29 per cent and the Canowindra Road at Canowindra (which is in Cowra Shire) 42 per cent.
The non-arable country around Wyangala in the east and Bumbaldry in the west have not seen the same level of demand, and value in these areas has seen steady to moderate increases.
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