UPDATE: Coastal land values in NSW have skyrocketed to a record $582 billion, representing a significant 2% increase from $570 billion in 2024, according to the latest report from the Valuer General of NSW, Sallt Dale. This development highlights a booming real estate market across coastal regions, despite a slight decline in rural land values.
The report reveals that property sales are the primary driver for these valuations, with an analysis of nearly 23,000 property transactions informing the latest figures. “The coastal market has shown a slight overall increase over the last year across the residential, commercial, and industrial sectors,” Dale noted.
In more specific terms, residential land values in coastal NSW surged by 2.3%, while the commercial sector also experienced slight gains. Dale emphasized that mixed-use commercial properties have been among the highest performers, reflecting renewed confidence in these areas.
The industrial sector continues to lead in growth, with land values increasing by an impressive 4.7% on average. Dale stated, “Industrial land values showed the largest overall growth in coastal NSW,” indicating a robust demand for industrial space as the economy rebounds.
Conversely, rural land values have faced challenges, experiencing an overall decrease of 0.7%. Dale cited “softening in the rural lifestyle holiday home market” as a key factor in this decline, along with ongoing corrections in demand for less popular secondary locations.
These new land values will be critical for property owners, as they will be used by Revenue NSW to calculate land tax liabilities. Registered clients can expect assessment notices starting in January 2026 for the upcoming land tax year. For more details on land tax thresholds and exemptions, visit revenue.nsw.gov.au.
Local councils will receive updated land values at least every three years, which are crucial for setting local rates. This means homeowners and prospective buyers should stay informed about these shifts, as they directly impact property taxes and market dynamics.
The latest data underscores the ongoing transformation of the coastal real estate market in NSW, presenting both opportunities and challenges for landowners and investors alike. As the market continues to evolve, all eyes will be on how these trends develop in the coming months.
Stay tuned for more updates as we monitor the impact of these changes on local communities and economies.
