The latest round of land tax assessments in New South Wales, drawn up before the Reserve Bank of Australia’s successive interest rate cuts but taking an average of land values over a three year period, show steep rises in property valuations in the Eastern Suburbs and Inner West.
On top of share markets losses, the global credit crunch, and the “bonus-rug” having being pulled out from investors in these areas, mortgages will become even more of a burden.
Given the clear indications that the property market has been struggling for a number of years, an increase in land value will come as a bitter-sweet shock to many.
On the flip side of the coin, suburbs in Sydney’s West and South-West show continuing falls in value, where the land values are struggling to keep pace with inflation.
The land valuations ultimately feed through to council rates, which certainly creates suspicions that the New South Wales government may be turning a blind eye to people’s pain in an effort to fill the ever-widening financial hole created by their own financial mismanagement and decreasing stamp duty windfall.
The largest rise in residential land value is in Woollahra which has increased by 24 per cent, followed by Waverley with 21 per cent, and North Sydney with 19 per cent.
The figures also solve the “contest” for now over which council area in Sydney has the most expensive property: Woollahra’s media value of residential real estate has grown to $1.47 million AUD, up 24 per cent compared to the $1.27 million AUD of Mosman, which has risen only eight per cent.
In 2007, only a $10,000 AUD gap separated the median values of the two council areas.
THE TOP 10 RESIDENTIAL LAND VALUE INCREASES
|1||24% – Woollahra||19% – Byron||92% – Urana|
|2||21% – Waverley||19% – Richmond Valley||50% – Broken Hill|
|3||19% – North Sydney||15% – Tweed||33% – Guyra|
|4||16% – City of Sydney||8% – Kempsey||25% – Tumbarumba|
|5||13% – Ashfield||5% – Coffs Harbour||17% – Queanbeyan City|
|6||13% – Marrickville||4% – Ballina||16% – Snowy River|
|7||12% – Strathfield||3% – Bega Valley||15% – Narrabri|
|8||10% – Burwood||2% – Port Stephens||15% – Tumut|
|9||10% – Randwick||1% – Nambucca; Port Macquarie-Hastings; Eurobodalla & Shoalhaven||9% – Uralla; Forbes & Clarence Valley|
|10||8% – Manly; Hunters Hill & Mosman|
THE 5 LARGEST DROPS IN LAND VALUE
|1||-5% – Liverpool||-6% – Wyong||-9% – Wellington|
|2||-4% – Campbelltown||-3% – Great Lakes||-6% – Wollondilly|
|3||-3% – Canterbury||-2% – Newcastle||-6% – Corowa|
|4||-2% – Hawkesbury||-1% – Gosford & Lake Macquarie||-5% – Cessnock|
|5||-1% – Auburb||-4% – Goulburn Mulwarre|