As part of the valuation process, valuers on behalf of the Valuer General undertake ongoing analysis of the NSW property market.
Property sales are the most important factor considered by valuers when determining land values as at 1 July each year.
While the NSW property market has generally been stable, local sale prices have shown variations in trends reflecting differing demand across localities.
First home buyers have continued to support market activity and sale prices at the lower end of the residential property market.
The residential market is the largest part of the property market in NSW. The graph shows trends in sale prices across these markets.
Sydney Metropolitan Area
The lower and middle sectors of the residential market across the eastern metropolitan area, northern and southern beaches is strengthening after a downturn earlier in the year. This has been reflected in either stable or rising sale prices throughout these areas.
Low sales volume in the prestige market together with the downturn earlier this year has contributed to a slight decline in the overall median sale price.
Sale prices in the western metropolitan area are generally steady. Sales activity from first home buyers has continued to support prices in this area.
Coastal
Despite a drop in residential sales volume, sale prices along the coastal strip of NSW have generally remained stable, underpinned by activity in the lower to middle sectors of the market. Premium properties have generally shown a slight decline in price.
Newcastle and Wollongong
Sale prices and sales volume have generally remained stable. The lower end of the market has shown slight increases due to the influence of first home buyers. Premium properties have generally shown a slight decline in price.
Western NSW
Sale prices in residential areas have been steady. There has been some increase in sale prices in small rural towns due to the influence of first home buyers. The volume of sales in larger centres has recently increased.
Rural property sale prices have remained steady. Ongoing dry conditions and returns for farmers have contributed to the limited growth in this area of the market.