THE LATEST land valuation report released by the NSW Valuer General has shown the value of Tweed land has risen sharply over the past 12 months as demand continues to outstrip supply.
The figures show the overall value of the Tweed’s land increased by 10.5 per cent in the year to July 2018 and 25.9 per cent in two years.
Industrial land had the largest yearly increase of 26.5 per cent, followed by commercial land (12.9 per cent), residential land (10.6 per cent) and rural land (8.9 per cent).
The report identified “high demand for a limited supply of properties” as the main factor leading to strong increases in residential land value, especially on the coast, as well as a strong tourism industry and low interest rates.
On the coast Chinderah saw the highest increase in residential land values over 12 months, increasing by 29 per cent, followed by Pottsville (21 per cent), and Kingscliff (16 per cent).
Land values in the villages of Stokers Siding, Mooball and Burringbar increased by between 16 to 23 per cent, which the report attributed to very strong increases in the Byron Shire’s land values placing outward pressure onto the southern parts of the Tweed Shire.
At the northern end of the shire, Tweed Heads South had the highest increase of 19 per cent.
“There was a strong increase in residential land values across the Tweed Local Government Area,” the Tweed valuation report reads.
“Increases were mainly due to high demand for a limited supply of properties with a diminishing supply of new land releases, particularly along the coast.
“There was a slight increase in land values for non-beachfront properties at Fingal and Cabarita Beach, while land values for non-beachfront properties within close proximity to the beach at Pottsville and Hastings Point remained steady.
“Residential unit site land values at Tweed Heads have increased slightly due to a lower demand for this property type.
“Land values in villages and rural residential areas generally increased slightly due to steady demand.”
The valuation report said high investor demand drove commercial land to increase by 12.9 per cent in a year and 23.2 per cent in two years, while “firm demand” and limited supply of industrial property at Tweed Heads caused industrial land values to rise by 26.5 per cent in 12 months and 33 per cent in two years.
“From 1 July 2017 through to 1 July 2018 the total value of industrial land in Tweed LGA increased very strongly overall, predominantly due to very strong value increases for flood free industrial land in the Industry Central Estate at South Murwillumbah, where strong demand for flood free land and reducing supply as available land was taken up, forced prices up by around 80 per cent,” the report stated.
“The value of industrial land at South Tweed also increased very strongly (approximately 28 per cent) due to strong demand and low supply.”
An ongoing increased demand for rural properties caused land values to rise by 8.9 per cent in 12 months and 26.5 per cent in two years, while sugar cane land remained steady.
“The increase in land values for rural properties in Tweed local government area can be attributed to increased demand for rural home sites,”the report said.
“The impact of the March 2017 floods remains a moderating impact on value levels in general.”
