Rural land value rises of more than 40 per cent overall in the Murray region point to long-term confidence in the sector, the NSW Valuer General says.
David Parker said rural land values increased strongly in Albury (14.5 per cent), Berrigan (82.5 per cent), Edward River (53.6 per cent) and Federation (42.5 per cent) in the 12 months to July 1, 2021.
"A significant number of purchasers being existing landholders looking to expand their farming operations, (with) favourable seasonal conditions, strong commodity prices and long-term low interest rates," he said.
The total land value for the Murray region increased by 28.9 per cent from $13.7 billion to $17.6 billion.
Dr Parker's annual land values report revealed a marked growth in residential, commercial and industrial land across the region, which includes the local government areas of Albury, Greater Hume, Federation, Berrigan, Edward River and Murray River.
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Residential land values, assessed over 43,248 properties, increased 14.2 per cent overall from $5.65 billion to $6.45 billion, led by Greater Hume's rise of 21.3 per cent.
"With flexible and remote working patterns, regional cities and towns are becoming increasingly attractive to purchasers," Dr Parker said.
"Other drivers in the region include increased confidence within rural communities and demand from first home buyers entering the market.
"Albury experienced a strong increase (11.3 per cent) with good demand predominately in the established housing areas within proximity to Albury CBD."
Federation recorded the biggest jump in both the commercial and industrial sectors, with results of 24.8 per cent and 18.6 per cent.
"There has been strong demand from both investors and owner occupiers acquiring existing premises within the established industrial estates, in addition to vacant land purchases to develop purpose-built facilities," Dr Parker said.
"Demand for commercial properties has stemmed from both local and out of town buyers."
Revenue NSW will use the July 1, 2021 figures to calculate land tax for 2022.
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