It would appear that the Northern Rivers region bounced back from any flow-on effect on land values due to the 2019-20 mega bushfires and, the pandemic appears to have actually increased demand for housing in the region. Now residential and commercial property owners are waiting on the first official post February-March 2022 floods land value report.
BACKGROUND
Pre-July 2019 to March 2020 Bushfire Season
NSW Valuer-General’s Report for NSW Land Values at 1 July 2019
North Coast NSW region local government areas
Ballina, Bellingen, Byron, Clarence Valley, Coffs Harbour, Kempsey, Kyogle, Lismore, Mid-Coast, Nambucca, Port Macquarie- Hastings, Richmond Valley, Tweed
General overview
The total land value for the North Coast NSW region increased 1% between 1 July 2018 and 1 July 2019 from $85.8 billion to $86.7 billion.
The value of residential land value in the region generally remained steady or increased slightly with an overall increase of 0.6%. However, moderate increases were experienced in Richmond Valley (6%) and Lismore (5%). Overall, values in Byron decreased slightly by 2.6% except for residential land in central Byron Bay which increased by 6.5% and residential land in the villages of Billinudgel, Federal and Main Arm which increased by 5%.
Commercial land values across the region generally remained steady or increased slightly with an overall increase of 0.9%. An exception to this was Kyogle where values increased moderately by 6.8%, with increases mainly confined to the northern part of the Kyogle town centre.
Industrial land values in the region generally remained steady with an overall increase of 1.6%. Values increased slightly in Port Macquarie-Hastings (4.4%) and Richmond Valley (4%), and moderately in Kyogle (6.2%) and Ballina (5.9%).
Rural land values in the region generally increased slightly with an overall increase of 2.5%. Rural land in Lismore, however, experienced a moderate increase of 8.1% due to a strong demand for hobby farm and rural lifestyle properties.
Post-July 2019 to March 2020 Bushfire Season
North Coast Voices, 14 February 2021:
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.
In the middle of the COVID-19 Global Pandemic
NSW Valuer-General’s Report for NSW Land Values at 1 July 2021
North Coast NSW region local government areas
Ballina, Bellingen, Byron, Clarence Valley, Coffs Harbour, Kempsey, Kyogle, Lismore, Mid-Coast, Nambucca, Port Macquarie- Hastings, Richmond Valley and Tweed.
General overview
The total land value for the North Coast NSW region increased by 28.7% between 1 July 2020 and 1 July 2021 from $89.3 billion to $115.5 billion.
Residential land values increased by 27.9% overall. The strongest growth was in Byron (51.9%), followed by Ballina (39.3%), Richmond Valley (38.4%), Clarence Valley (31.9%) and Kyogle (27.4%). Strong increases were also seen in Port Macquarie (17.9%), Kempsey (17.0%) and Lismore (17.7%).
Sea and tree changers relocating to work remotely drove demand along the North Coast seaboard.
Overall, commercial land values increased by 28.7%. Byron (50.3%) experienced the strongest increases due to strong demand in a tightly held market. Other large increases were seen in Tweed (23.6%), Ballina (28.8%), Richmond Valley (37.5%) and Port Macquarie (27.3%), Kyogle (11.4%) and Kempsey (10.7%), while Lismore (9.0%) increased moderately with supply meeting demand.
Industrial land values for the region increased by 22.6%. Very strong increases in Byron (37.1%) followed heightened demand for relatively affordable industrial space in Bangalow and Mullumbimby. An increase in building activity saw demand outstrip supply in Port Macquarie Hastings (36.5%). Nambucca (31.9%) saw strong demand for limited stock while a balanced supply of industrial land resulted in moderate-strong value increases in Clarence Valley (7.3%), Lismore (11.1%), and Richmond Valley (11.7%).
Rural land values across the region increased by 30.5%. Byron increased 70.5% as the residential market moved into hobby farms and lifestyle properties, while nearby Ballina experienced a very strong 32.2% increase. Strong increases were also seen in Coffs Harbour (11.9%), Nambucca (28.8%) and Clarence Valley (22.9%), with increased demand from both lifestyle changers and rural producers. Good rainfall, buoyant commodity prices, low interest rates and a favourable seasonal outlook has seen on-going demand for quality cropping and grazing land from local and interstate buyers and western graziers.
Generally the Valuer-General’s land value reports are published within six months either side of the 1 July date at which any value change is calculated.
Given that property sales are the most important factor valuers consider when determining land values and since the NSW February-March 2022 widespread destructive flooding along the Australian east coast has left whole villages, towns & even cities with a significant percentage of their housing stock in an unsaleable condition, I suspect that this year’s land value report may be delayed.
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