Hot Property At Home On The Beach

Newcastle Herald

Thursday January 11, 2007

By MICHELLE HARRIS

BEACHSIDE Newcastle real estate is more prized than ever, with Merewether and Bar Beach land values rising by more than $100,000 in a year, figures from the Valuer-General of NSW show.

Land valuation notices were issued yesterday to more than 55,000 properties in the Newcastle Local Government Area, following a revaluation of the area in 2006 for council rating purposes.

Valuers analysed more than 500 residential sales, more than 300 commercial and industrial sales and about 30 rural sales to determine Newcastle land values at July 1, 2006.

Overall, land values for residential land in Newcastle held steady or increased, Valuer-General Philip Western said yesterday.

"Beachside suburbs in particular continued to see land value growth based on market demand," he said.

Merewether and Bar Beach land values were subject to the biggest changes.

Typical land values in Bar Beach have increased by $200,000 since 2005 to an average of $1.2 million in 2006.

In Merewether, typical land values rose to $670,000, an increase of 31.3 per cent on the previous year.

"Typical" land values are said to represent the value of the most common type of property in a particular suburb.

Other winners were Carrington, up by $34,000 in three years to $180,000, and Hamilton, up by $15,000 since 2004 to $320,000.

Land values that dipped were in Stockton, down from $340,000 in 2004 to $284,000, and New Lambton, down from $260,000 in 2004 to $250,000.

Commercial land values in Newcastle's suburban shopping centres showed "moderate increases" and industrial value levels continued the upward trend of past years, brought on by diminished supply.

Beresfield industrial land values showed the highest growth, almost doubling in value from $214,000 in 2004 to $415,000 in 2006.

A Newcastle City Council spokeswoman said the land value rises would have little effect on residential rates, which were calculated by using a base rate in combination with land values.

Land value notices for Dungog, Cessnock and Muswellbrook are expected to be released later this week.