Overall residential land values in the Hunter increased nine per cent in a year, according to a report released by the NSW Valuer General this week.
Residential land values increased to $131.1 billion as of July 1, 2018, up from $120.2 billion on July 1, 2017.
The growth varied from slight increases in the Singleton (3.8 per cent) and Upper Hunter (4.0 per cent) local government areas, to strong increases in the Mid Coast (13.0 per cent) and Central Coast (12.1 per cent) LGAs.
Newcastle increased 6.7 per cent and Lake Macquarie 5.8 per cent.
Muswellbrook (0.4 per cent) was the only area to record steady residential land values.
There were 367,672 residential properties, meaning the average land value of a residential property in the Hunter was $327,148.
The report recognised the region as the Central Coast, Cessnock, Dungog, Lake Macquarie, Maitland, Mid-Coast, Muswellbrook, Newcastle, Port Stephens, Singleton and Upper Hunter council areas.
It shows growth across all property types as total land value for the region increased by more than eight per cent in a year to more than $162 billion.
Industrial land recorded the most growth in the year, increasing 11.6 per cent to $3.15 billion for 5,604 properties in 2018 from $2.82 billion a year earlier.
Commercial land values in Newcastle rose 10.7 per cent with “increased demand as a result of government infrastructure spending to improve roads and construction of the light rail in Newcastle,” the report said.
Overall commercial land values increased moderately by 8.7 per cent, rising to $5.35 billion in 2018 from $4.29 billion the year before.
The report said the rise was “related to the flow-on from strong residential demand and low interest rates, improved returns and rents, and government infrastructure spending [on] roads, light rail and capital works”.
Rural land values in the region increased 7.3 per cent, up to $13.68 billion from $12.75 billion. There were 36,406 rural properties.
“The rural increases occurred against the backdrop of drier than normal seasonal conditions, however the rural-residential and hobby farm markets which dominate the Hunter region were less impacted by seasonal conditions and driven more by demand, affordability and accessibility,” the report said.
The land values were prepared by private contract valuers with expertise in their local areas and were determined as of July 1, 2018.