Wagga land values see strong rise in past three years

AT A GLANCE: The significant land value changes from prior to the current local government rating valuation. Source: NSW Valuer General report prepared by the Opteon Property Group

ALL eyes are on Forest Hill with the value of residential land shooting up by 18 per cent in past three years.

The latest NSW Valuer General's report revealed that Brunslea Park, a relatively new estate at Forest Hill, had some of the strongest land value growth between 2016 and 2019.

It was followed by Outer Central Wagga and Edward Street West, both of which saw a 16 per cent boost in the same time frame, with Tatton at 12 per cent and Lake Albert at 11 per cent.

Remax Elite director Dave Skow said in the past residents viewed Forest Hill as a separate town to Wagga.

But after several years, he said the Brunslea Park Corporation have done a "really good job" in educating people that Forest Hill is a suburb and a commutable distance.

"Wagga locals have always held a long standing view that Forest Hill is that place down the road and is removed," he said.

"It's just as easy a drive as some of the other suburbs such as Tatton, Bourkelands and Lloyd, which are always considered premiere suburban centres."

The suburbs of Ashmont and Tolland South West, however, showed a strong decline in value by 11 and 12 per cent respectively.

Mr Skow said the Valuer General's report is based on supply and demand and those suburbs are notorious for being at the lower end of the city's residential market.

Despite this, he said Ashmont and Tolland South West are still popular from an investment point of view.

"Rental yields are the strongest that Wagga has to offer, but growth rates are to that detriment," he said. "We can't have excellent growth and excellent yield because then everyone would be a millionaire, so something has to give ... and in some instances we will see a decline in land value."

Overall residential values showed a strong increase of 13.4 per cent between 2016 and 2019, which Mr Skow said could be narrowed down to second-home buyers making their next move.

"There is a lot of interest in that northern corridor from an owner-occupier point of view," he said.

"A lot of people want to get out in that location and because that is where the land is, that is where they are looking to build."

Wagga independent valuer Chris Egan said a rise in land values is a positive outcome for the city because the demand for property remains strong.

"What we do not see in regional areas is big fluctuations, big increases in land values and the big decreases. We see steady rises," he said.

"We are very attractive to investors and people looking to build homes because of the relatively low price bracket, but we have to be competitive alongside other regional cities in NSW."

This article was written by Daina Oliver

and originally published by Daily Advertiser Wagga Wagga