The cost of land across Sydney has skyrocketed over the past year with Sydney’s western suburbs recording the strongest gains.
Figures released by the NSW Valuer-General show the total value of land across the state climbed to $1.34 trillion last year, according to a report in the Sydney Morning Herald.
Land values increased by more than 10% in many of Sydney’s local government areas, however the biggest gain was recorded in Blacktown, where the value of residential plot surged by 47%.
According to the Sydney Morning Herald, NSW Valuer-General Simon Gilkes said investments in infrastructure and historically low interest rates have driven the increases in NSW land values.
“The market has also been supported by increased land supply through major new land releases and increases to permitted residential densities in many areas,” Gilkes said.
Land values also surged in Parramatta (up 36%) and nearby Holroyd (38%). Values increased north of 30% in Fairfield, Auburn, Canada Bay, the Hills Shire and Randwick.
The most valuable land in NSW, however, continues to be concentrated in Sydney’s lower north shore and eastern suburbs. Mosman recorded the most expensive land value, with the median cost of a residential plot reaching $1.6 million. The median land value in Woollahra reached $1.57 million, followed by Waverley at $1.41 million and Hunters Hill at $1.36 million.
According to the Sydney Morning Herald report, the figures released annually by the NSW valuer general do not include the value of homes or buildings on land, but can contribute to the calculation of land taxes and council rates.