Central West NSW showed some of the strongest land value growth in the state last year, with prices for both residential and rural properties increasing by 14.8 per cent.
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The NSW Valuer General’s report revealed land prices throughout Hilltops, including Harden, increased by 21.2 per cent in the 12 months leading up to July 1, with residential property alone rising by almost five per cent.
While residential properties showed strong growth, the real winners throughout Hilltops were rural property owners, whose land values rose by an impressive 25.5 per cent.
Tim Corcoran of Delta Livestock & Property said these price increases came down to today’s strong returns on commodities.
“This is happening because of the strong commodities market – take the wool market at the moment, there's just huge confidence in that,” Mr Corcoran said.
“The returns have been as good as they've ever been, and farmers are making more money than they ever have on the back of these commodities.”
Mr Corcoran said the region’s growing population has also encouraged a trend of living further away from large regional centers that is helping drive prices up.
“Supply and demand has been another factor – the lack of properties hitting the market is motivating people to get in so they don't miss out,” he said.
“I think prices will stay strong and there's probably more of this to come as long as wool, sheep, and cattle remain pretty firm.
“I can't see land values going backwards, and I suppose they could even get stronger.”
Commercial land values in Hilltops also rose by five per cent, however industrial property pricing is steady.
Overall, the total value of all lands across the Central West region increased from $13.9 billion to $15.9 billion.
The region’s largest growth occurred in Narromine, where residential properties stayed steady but rural land values rose by 33.1 per cent.
