In figures just released by the Valuer General’s Department, Bathurst recorded a 9.6 per cent increase and the Oberon Local Government area increased by 20 per cent, or $81,600.

NSW Valuer General Simon Gilkes said the value of land in NSW has increased by more than 11 per cent.

He said almost 2.5 million residential, rural, business and industrial land values for properties in NSW were assessed.

“Overall residential land values for NSW increased by 13.12 per cent in the 12 months to July 1, 2014 compared to a 3.21 per cent increase for the year to July 1, 2013,” he said.

Mr Gilkes said predominantly the greatest land value increases have occurred in the Sydney basin.

Raine and Horne Bathurst director Grant Maskill-Dowton said the increase in land value shows the city is growing.

“The building industry is definitely a growth area in Bathurst because there is always building going on,” he said.

“Supply and demand will always push prices up.

“Last year there was a huge hold on residential land, so when it was released, it sold quickly for a higher price than we have seen in the past.”

Mr Maskill-Dowton said Bathurst is popular because of its proximity to Sydney, its profitable rental market and good facilities.

Oberon mayor John McMahon said the substantial increase indicates the Oberon area is very attractive to those wanting to invest in the area.

Cr McMahon said it means there is a huge demand for land and building blocks and this raises the value. 

He also believes Oberon’s close proximity to Sydney, the good amenities and good climate attract a lot of people to the town.

“I have noticed that land values are going up,” Cr McMahon said.

“Land is definitely selling for higher prices per hectare in line with demand.

“In one way it’s a good thing, and in other ways, it’s bad.

“It’s good for people who want to sell, but if a young landholder wants to extend their property by acquiring extra land, competition is fairly intense. 

“It won’t drive rates up, however, because we are restricted in what we can do by rate pegging.”

Cr McMahon said there is a shortage of land in Oberon because 49 per cent of the shire is covered by forest and national park.

Among the regional LGAs performing strongly alongside Oberon and Bathurst were Gilgandra at 30 per cent, Coonamble 20 per cent, Dubbo 19.4 per cent, Newcastle 10.4 per cent, Wyong 9.6 per cent and Kiama 9.5 per cent. 

A total of 22 LGAs in the state experienced a decrease in median residential land values for the 12-month period. The largest, 10 per cent, was at Cobar.

Over the coming weeks more than 882 Notices of Valuations will be sent to ratepayers in 45 LGAs showing the value of residential, rural, business and industrial properties based on market conditions as of July 1, 2014.

Mr Gilkes said the valuations will help councils determine the amount of council rates landholders pay.