Land tax drop shock

WITH Sydney residential land values experiencing a decrease of 6.7 per cent, property owners will no doubt breathe a sigh of relief when their land tax assessment bill from Revenue NSW arrives this month.

However, several real estate agents have warned that the relief will be short-lived as the Federal Government reins in inflation and property prices bounce back this year.
Rodi Realty’s Brett Dubos said the land tax reduction is a small win but he believes the market will definitely “even out” this year.
“It’s a great time to sell and buy but vendors need to be realistic in their expectations,” he said.
“Just because your neighbour thinks your property is worth a certain amount, doesn’t mean the market agrees.”
Laing & Simmons Auburn Lidcombe’s Themy Panagiotidis said despite it being only January, there was plenty of market activity.
“We’re seeing a lot more first home buyers coming onto the market which is great,” he said.
Colleague Costi D’Bais agreed.
“I just sold a one-bedroom unit for $450,00 which would have fetched $380,000 a year ago so land values may be less but the market is still strong and people are prepared to pay top dollar,” he said.
Land value is the value of the land only. It does not include the value of a home or other structure. Property sales are the most important factor valuers consider when determining land values, according to the Valuer General NSW.