Climate change impacts begin to affect regional land values in NSW Northern Rivers region

 

As of 28 January 2020 the climate change-induced 2019-20 bushfires in New South Wales had burnt 5.3 million hectares (6.7% of the State), including over 52 per cent of the land area in the Clarence Valley and close to 49% of the land area in the Richmond Valley.

Now we find out how this affected land values in those two local government areas.

Decreases were evident in some areas impacted by bushfire events, with the largest land value decreases in Rappville and Whiporie in Richmond Valley (-21%) and unspecified moderate to strong decreases in localities south of Grafton, Coutts Crossing and the Clarence River.

  

Daily Telegraph, 10 February 2021:

THE 2019 bushfires have had a lasting impact on the Clarence Valley, with the NSW Valuer General revealing areas hit hard by the disaster have seen a decrease in land values.

The total land value for the North Coast NSW region increased by 2.5 per cent between July 1, 2019 and July 1, 2020 from $87.1 billion to $89.3 billion.

“However, moderate to strong decreases in rural land values occurred in other localities including south of Grafton, Coutts Crossing and the Clarence River because of the 2019 bushfires,” NSW Valuer General Dr David Parker said.

“Decreases in land value were evident in some areas impacted by the 2019 bushfires such as Rappville and Whiporie.” According to the NSW Valuer General’s report, rural land values in the region remained steady at 1.5 per cent and Kempsey (6 per cent) experienced moderate increases due to continuing demand for good-quality agricultural land with reliable water combined with strong commodity and stock prices.

Dr Parker said property sales were the most important factor valuers considered when determining land values.

“Last year was a difficult year for determining land values in the aftermath of last summer’s horrific bushfires, followed by the impacts of the COVID-19 crisis,” he said.

“My office has undertaken separate studies of the impact of both bushfires and COVID-19 on the property market. Our valuers have applied the findings of these studies to affected areas and property types where there are insufficient sales available to determine the land values.” Valuer General NSW has established a dedicated assistance line for landholders impacted by the 2019-20 bushfires, or who believe their land value has been impacted by COVID-19. Affected landholders are encouraged to call 1800 458 884….