Commercial and industrial land values in Kiama are booming, while residential land remains in hot demand according to the latest figures published by the NSW Valuer General.

The NSW Valuer General regularly updates the value of land across the state, and recently published its numbers for the South Coast, which includes Kiama as well as Shellharbour, Shoalhaven, Wollongong, Bega Valley, Eurobodalla, Wingecarribee and Wollondilly. Revenue NSW uses these values to determine how much residents should pay in land tax.

Land value across the South Coast dipped 3.7 per cent from $215.5 billion as of 1 July 2022 down to $207.6 billion by 1 July 2023.

Residential land values fell slightly from $165.8 billion to $156.4 billion, a 5.6 per cent drop. Residential land makes up the majority of land in the South Coast of NSW, with 217,602 properties assessed. 

A media release from the Valuer General said that while there was still a steady demand for residential property in coastal locations like Kiama, rising interest rates, inflation and construction costs have resulted in the small decline in value.

Commercial land values in Kiama saw a healthy 10.6 per cent increase as demand remained steady while supplies were limited. The overall value of commercial land for the South Coast was $6.8 billion, up 2.2 per cent from the previous year based on 5,175 properties.

Industrial land values saw a huge surge, up 23.1 per cent in Kiama. The growth was mostly due to growing populations combined with a limited supply of zoned land.

Rural land value also saw a small bump up of 4.5 per cent, driven by more people wanting to escape urban life for the country.

Land value is determined by assuming the land is vacant and the highest and best use for it is permitted.