RESIDENTIAL land values in the Hunter increased by 3.1 per cent in the year to July 2020, with the largest rise in Dungog where values jumped 16.2 per cent.
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The NSW Valuer General, Dr David Parker, published on Monday land values for the Hunter region, which covers the Cessnock, Dungog, Maitland, Muswellbrook, Singleton and Upper Hunter local government areas and 92,880 properties.
The total land value for the region increased by 2.3 per cent between July 1 2019 and July 1 2020, from $24 billion to $24.6 billion.
Dr Parker said property sales were the most important factor that valuers considered when determining land values.
"2020 has been a difficult year for determining land values in the aftermath of last summer's horrific bushfires, followed by the impacts of the COVID-19 crisis," Dr Parker said.
"My office has undertaken separate studies of the impact of both bushfires and COVID-19 on the property market."
Revenue NSW will use the land values to calculate land tax for the 2021 land tax year.
The data shows overall residential land values in the region increased by 3.1 per cent.
Dungog experienced the largest increase at 16.2 per cent, which Dr Parker said was due to increased demand locally and from Newcastle and Sydney based buyers seeking relocation.
Maitland residential values increased moderately by 4.2 per cent, due to its high level of amenity following significant infrastructure upgrades.
Steady residential land values were recorded in the other local government areas including Singleton, Muswellbrook and the Upper Hunter.
Values of commercial lands remained steady in the Upper Hunter's local government area due to well-balanced supply and demand. Decreasing land values in Cessnock (-3.8%), Muswellbrook (-7.8%) and Singleton (-4.4%) were due to detrimental impacts from COVID-19 in some areas with limited sales occurring.
Industrial land values increased moderately by 3.8% overall. Muswellbrook industrial land values increased by 8.2% based on increased demand for the satellite industrial areas south of town.
Rural land values in the Hunter increased moderately by 4.1% overall. This is largely due to improved seasonal conditions and demand from metropolitan based purchasers looking to relocate.