Land values skyrocket in industrial part of coastal town
DEMAND for industrial land in Byron Bay is so high, land values for some properties has doubled in 12 months.
The latest land values have been released by NSW Valuer General, Simon Gilkes, showing overall there was a strong increase in land values in the Byron Local Government Area between 2016 and 2017. This overall increase was driven by very strong increases in residential and industrial land values. Commercial and rural land values experienced a strong increase. The increase in land value levels resulted from very strong demand from both investors and owner occupiers and limited supply of properties on the market at any one time. Other significant local drivers were demand from interstate and metropolitan buyers, strong tourism and low interest rates.
The report said the 2016/2017 season had been one of the best tourist years in recent record and this had been reflected in commercial rents.
Concern was raised the increasing land values also raised land tax, putting an extra burden on commercial real estate, particularly in Byron Bay.
There was a very strong increase in residential land values in the Byron local government area which was driven by demand from investors and owner occupiers and limited supply of properties on the market.
The report said the limited number new land releases in the Byron local government area for many years drove up land values on existing properties.
In recent years, in order to provide affordable accommodation, the Byron Shire Council policy encouraged the development of secondary dwellings - granny flats.
In 2011 the council waived developer contributions on secondary dwellings and over time this has stimulated significant growth in this type of accommodation, although it is noted that many "granny flats" remain unapproved.