The Riverina had some of the strongest land value growth in the state last year, with overall prices increasing by 16.6 per cent.
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The NSW Valuer General’s report revealed land prices in Wagga increased by nine per cent in the 12 months leading up to July 1, with residential property alone rising by almost six per cent.
Greg Chamberlain of Wagga Real Estate said these strong value increases could be explained by the simple laws of supply and demand.
“Supply was low last year, which has pushed prices up – and the shortage is still driving the market to a positive increase,” Mr Chamberlain said.
“We’ve also certainly seen an increase in investors from Sydney and Melbourne coming to Wagga, and we’re just inundated with rental inquiries at the moment.
“The forecast for this year is that the market will stay strong, and I think the growth we're seeing in Wagga will flourish for the next two or three years.”
Wagga’s biggest winners were rural landowners, whose property values increased by an impressive 19.9 per cent.
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.
- Tim Corcoran
Tim Corcoran of Delta Livestock & Property said these price increases came down to today’s strong returns on commodities.
“Property prices have been on the gradual rise since about the end of 2012, but there's definitely been a significant spike in the 12 months in particular,” Mr Corcoran said.
“This is happening because of the strong commodities market – take the wool market at the moment, there's just huge confidence in that.
“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 Wagga’s growing population has also encouraged a trend of living further away from the regional centre that is helping to 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.”
While land values rose strongly across the region, the Riverina’s biggest increases happened in Hay, where rural land values rose by 48.7 per cent.
