Property values increase across City

Friday, 22 January 2016

Residential property value across the City has increased by an average 33% in the past 3 years.

Council has responded to the Valuer General's latest valuations which show residential property across Penrith City has increased by an average 33% in the past three years.

"We weren't surprised to get this official confirmation that Penrith is increasingly popular with investors and continues to be seen as a great place to live," Penrith Mayor Karen McKeown said.

"Last year ABS statistics told us that only 5.8% of Penrith City residents moved out of the area, making it the third lowest Local Government Area for departures behind the Sutherland Shire and Blue Mountains. Accordingly, demand for property in the areas has increased with new residents who want to move into our great City and those who want to stay pushing up the value."

The Valuer General's office updates land values every three years and property sales are the most important factor influencing the valuations.

The values apply to the land only, not any improvements or the value of a home.

More than 1000 property sales were analysed, indicating the overall land value in the Penrith LGA at $25.14 billion for 2015, a 27.94% increase on 2012's $19.65 billion.

"Residential land increased by an average 33% across the LGA with the highest increases seen in St Clair, Erskine Park, North St Marys, North Penrith and Glenmore Park," Cr McKeown said.

"There is a lot of interest in our City from major developers and we anticipate the proposed airport at Badgerys Creek will provide an increase in infrastructure and employment for local residents so this trend is set to continue."

Cr McKeown said some residents may be concerned their rates will increase as a result of the new valuations.

"The total amount of rates income Council receives doesn't change because property valuations do. These valuations enable us to proportion rates across the City to ensure that a property owner whose land is worth a lower amount pays less than someone who owns a more valuable property. Just because an owner has had a large increase is unlikely to make a significant difference because of the high increases experienced across the entire City.

"If you're a resident who has seen an increase of around 30% you're in the majority and will pay proportionally no more as a result of the new valuation."

Information contained within this news release was correct as at Friday, 22 January 2016.