Residential land prices across Greater Sydney rose by 4.7% in the 12 months to June, as buyers sought more affordable options in the city’s west where lower property prices remain accessible. Factors such as population growth and interest rate cuts supported the overall rise in prices. However, the strongest increases were in Fairfield and Penrith, where values climbed more than 10% and outpaced much of the rest of the Sydney market.
Sydney’s housing market is increasingly under pressure as buyers search for more reasonably priced alternatives to inner-city areas. Suburbs in the outer west, especially Fairfield and Penrith, attracted strong demand due to better value. Lane Cove in northern Sydney also recorded notable growth, with an 11% rise, as larger land parcels there are being targeted for subdivision and redevelopment. This reflects increased interest from both developers and homeowners.
Across New South Wales, residential land values rose by 3.6%, based on newly released data from the state valuer general, which analysed over 66,000 transactions. Growth was widespread but most pronounced in areas where affordability or development opportunity led buyer interest. Sydney’s residential land now accounts for $1.71 trillion of the state’s $3.09 trillion total property value, underlining the city’s scale and ongoing significance in the broader property market.
These land valuations affect more than just sale prices. They also influence council rate assessments and annual land tax bills, particularly for holiday homes and investment properties. With around two-thirds of NSW councils set to update property values this year, homeowners may see changes to their rates depending on how their own valuations compare to nearby properties.
Beyond Sydney, land values in coastal and regional locations are also rising. Byron Shire topped coastal areas with a 13.8% gain in land values. In regional towns such as Bathurst and Uralla, industrial land values soared more than 50% as new infrastructure and industries like mining and critical minerals drove demand. An interest rate cut in August helped push values up further in the early part of the financial year, though expectations suggest more moderate growth may follow in 2025.
