New figures show land value in the Riverina continues to be on the rise.
The NSW Valuer General’s report revealed the Riverina had some of the strongest land value growth in the state last year, with overall prices increasing by 13.5 per cent.
The NSW Valuer General’s report revealed residential land prices in Wagga increased almost six per cent.
Paul Irvine, director of Professionals Real Estate Wagga, said the land value in Wagga does not peak and crash, but rather spikes and plateaus.
“Land back in 2016 and 2017, whether it be in Lloyd or Estella which is predominately where most of the new land is becoming available, was worth $125,000 to $140,000,” he said.
“Now it’s worth $145,000 to $155,00 and that is in two to three years.
“I have sold real estate for more than 20 years and that’s the way the market goes.”
Mr Irvine said this is also a result of Wagga City Council and what developments they release.
The first home buyers grant kicking in also provided a major boost to the Wagga market, Mr Irvine said.
“When the market for land is a median of $140,000 and your building is around $300,000, then $10,000 is a big incentive,” he said.
“Particularly for Wagga, whereas the figure doesn’t the impact for buyers looking in Potts Point, Sydney.”
Mr Irvine said when looking closely at the area, the rise in land value differs depending on the market availability.
“Lake Albert is full, so if a vacant block came up you could ask a premium price for it,” he said.
“In Springvale a year ago, a two-acre block that was bought for $275, 000 went one year later for $320,000.
“Five buyers were wanting that parcel.”
Lynne Bodell, a representative of the Wagga Ratepayers’ Association, said the value of land going up is a double-edged sword.
“On the positive side we have a strong economy and our areas are growing well,” she said.
“Hopefully it means our local and state governments have been investing in the right areas.
“On the negative side, because our rates are based on the land value they will rise.”
Ms Bodell said because the land value did not see a huge spike it will not cause rates to soar.
“No increase is welcomed but hopefully if our economy is growing then people can afford it,” she said.
Acting NSW Valuer General, Michael Parker said property sales are the most important factor considered by valuers when determining land values.
“It is important to note that land value is the value of the land only, and does not include the value of a home or other structures,” he said.