THE value of Bathurst’s residential land rose at a much slower rate than Orange’s in the year to July 1, 2016, according to a new report.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
But the report contains good news for the owners of properties south of Boyd Street in Kelso and in the Osborne Avenue-Green Street area of West Bathurst, where land enjoyed jumps in value of 25 per cent and 10pc respectively in the 12-month period.
The information comes from the latest evaluation from the NSW Valuer General.
It shows the value of residential land in Bathurst rose by 1.5pc in the year to July 1, 2016 to $1.890 billion – easily eclipsed by Orange’s growth of 5.5pc to $2.198b.
The land values, according to NSW Valuer General Simon Gilkes, do not include the value of the home or improvements to the land.
Asked about the discrepancy between the Bathurst and Orange growth rates, agent Jacinta Purvis of First National Bathurst said land values in Bathurst had enjoyed strong growth earlier than they had in Orange.
She also said there had been significant growth in Bathurst in the latter half of 2016 – a period not covered by the report.
She said there remained “significant demand” for land in Bathurst and described Bathurst Regional Council’s controlled land releases as “sensible”.
”I support how it [land] is being released to make sure, overall, Bathurst continues to be a growth city,” she said.
Ms Purvis said Osborne Avenue and Green Street in West Bathurst were popular with buyers for their views and their affordability.
“Families can still purchase, renovate to their likes and needs and retain a profit,” she said.
Of the properties south of Boyd Street in Kelso, Ms Purvis said there were still properties in that area where investors could obtain a neutral to positive cash flow – where the money collected in rent covers or exceeds the amount paid in interest on the loan for the property.
“It allows families to have an investment without draining the cash flow,” she said.
Mitchell Bestwick of One Agency Bestwick Real Estate said Orange had always been ”quite a temperamental market”.
“It does not always follow the same trends as Bathurst,” he said. “Bathurst grows at quite a steady rate, supported by sustainable industries.”
He said the release of land at Bathurst was much more restricted than at Orange. At Orange, he said, developers, rather than the council, were working on and releasing housing estates.
He said Bathurst Regional Council’s ballot system for land restricted price rises.
“You can't just go and buy the property that you want and pay what you want to pay,” he said.
Mr Bestwick said the Osborne Avenue-Green Street area in West Bathurst had been changed by Bathurst’s overall residential spread.
“That is certainly an area that is quite popular due to the growth of Bathurst extending out through Llanarth and Eglinton. That has made West Bathurst quite central,” he said.
David Chapman of Century 21 Bathurst said he was surprised by the discrepancy in the growth in land values between Bathurst and Orange.
He said he had spoken to a land developer recently who said there were only six blocks in Bathurst for sale at that time that were ready to build on.
He put the increase in values south of Boyd Street down to the upgrade of the Great Western Highway at Kelso nearing its completion.
“It will have a knock-on effect to the value of properties,” he said.
The total value of land in the Bathurst Regional Council area (including residential, commercial, industrial and rural) at July 1, 2016 was $3.287b – significantly bigger than Orange’s $3.115b.