The total land value for the Dubbo Regional Council area has experienced a "strong increase" of 11.6 per cent in the year to July 2021, on the back of two stand-out sectors.
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Rural values jumped by 16.3 per cent overall and residential values rose by 10 per cent overall for the local government area, in new figures published by NSW valuer general Dr David Parker.
Industrial land recorded an 8.9 per cent increase, placing it in the moderate range, while commercial land had a slight increase of 3 per cent.
Total land value of 23,905 properties within the Dubbo Regional Council area rose from $5.22 billion in July 2020 to $5.82 billion in July 2021.
A strong increase was also experienced across the wider "central west NSW region" of 14.5 per cent in the year to July 1, from $22.6 billion to $25.9 billion.
The region includes Coonamble, Dubbo Regional, Forbes, Gilgandra, Hilltops, Lachlan, Narromine, Parkes, Warren, Warrumbungle and Weddin local government areas
Dr Parker said property sales are the most important factor valuers consider when determining land values.
"Land value is the value of the land only and does not include the value of a home or other structures," Dr Parker said.
"Private contract valuers with expertise in their local areas have prepared the 1 July 2021 land values on behalf of the Valuer General, to determine new land values across the region.
"The valuers consider a range of factors in determining land value, including the features of the land and its legally permitted use.
"Valuer General NSW has quality assured the land values for fairness and consistency."
The strong increase in residential values within the Dubbo Regional Council area was strongly influenced by residential land values within the city of Dubbo, the report published on the Valuer General NSW website and prepared by Opteon Property Group says.
"This trend is largely attributable to low interest rates, the impact of COVID-19 and government stimulus packages," Opteon says in the report.
"In addition, many purchasers are seeking flexible and affordable lifestyle options in regional areas over metropolitan locations.
"Investors have also contributed to strong demand given sound investment returns and low vacancy rates supported by public and private infrastructure projects."
Opteon's work determined residential areas around Wellington experienced a steady increase given a large stock of affordable housing options.
"Residential areas around Delroy and Grangewood remained steady whilst rural residential surrounding Dubbo experienced a slight increase given the large stock of land available to the market," Opteon said in the report.
The villages of Mumbil and Euchareena experienced very strong increases due to affordability and proximity to the city of Orange, Opteon said in the report.
Elong Elong, Yeoval, Eumungerie, Stuart Town and part of Geurie all experienced slight increases given an ample supply of affordable housing options compared to surrounding larger towns and regional centres, it said.
Dubbo industrial values experienced a moderate increase from 2020 to 2021 "largely attributable to very strong demand for larger sites around the fringe of the city of Dubbo from purchasers seeking to set up and relocate large industrial enterprises".
Wellington industrial values remained steady "as supply was met with current demand".
Faye Wheeler
I have been a journalist for more than a decade and in that time I have been keeping Daily Liberal readers up to date about issues affecting them and what's happening in their community. Throughout my career I have covered a range of rounds and most recently I have been focusing on the business round.
I have been a journalist for more than a decade and in that time I have been keeping Daily Liberal readers up to date about issues affecting them and what's happening in their community. Throughout my career I have covered a range of rounds and most recently I have been focusing on the business round.
