Hunter land values increase by 36.6 per cent

In the year to July 2021, land values rose by 36.6 per cent in the Hunter Coast region, which comprises Newcastle, Lake Macquarie, Port Stephens and the Central Coast.

By comparison, a rise of just 1.9 per cent was recorded in the year to July 2020.

The increase takes the total value of land in the Hunter Coast from $124.8 billion to $170.5 billion and was carried by a 38.1 per cent rise in residential property values, the highest rise in the state.

Commercial property in the region experienced the next biggest growth (29.4 per cent) followed by industrial (27.6 per cent) and rural (22.8 per cent).

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Land values, which are determined by private contractors and reviewed by NSW Valuer General Dr David Parker, are used to calculate land tax and typically impact council rates.

In the City of Newcastle, rates notices consist of three flat payments, for services such as waste and stormwater, and two payments that vary according to property value.

Dr Parker said the huge rise in residential land value had largely been evenly spread across the region.

"The Central Coast experienced the strongest increase at 45.4 per cent due to it being just a one-to-two-hour commute from Sydney," Dr Parker said.

"Beachside suburbs which offer the highest lifestyle amenity experienced the most significant increases."

Land values also rose significantly in the Hunter region, which takes in Cessnock, Dungog, Maitland, Muswellbrook, Singleton and the Upper Hunter.

The region's total land value increased by 30.9 per cent from $24.8 billion to $32.3 billion.

Dr Parker said the increase reflected the recent trend of city dwellers relocating to regional areas.

"Maitland has been in demand due to its proximity to a variety of services including Green Hills shopping centre, the new Maitland Hospital as well as good access to Sydney, Newcastle, and the Hunter Region," he said.

"More moderate increases were experienced in Muswellbrook which has had less rural lifestyle demand from relocators in comparison to Maitland."

Residential values again experienced the biggest increase (32.9 per cent), but rural property (30.9 per cent) was not far behind.

"There was strong demand from city-based purchasers looking to relocate to rural properties that are lifestyle in nature," Dr Parker said.

"In Cessnock demand was particularly strong for rural lifestyle properties that presented well with good hobby farm capability."