The average residential block in Guyra shire was calculated to cost $57,500, an increase of 7.68 per cent from 2014 to 2015.

Guyra shire mayor Hans Hietbrink was not surprised by the rise and said Guyra was a growing town.

“Land values go up based on demand and there is significant demand for building blocks and housing in Guyra,” Cr Hietbrink said.

“We have one of the highest growth rates of any rural town.”

He attributed much of the growth to the Costa tomato farm near Guyra, along with people who work in Armidale but prefer to live the rural life in Guyra.

“The average price (of $57,500) could also be skewed by some of the smaller towns in the shire, such as Tingha, so the price of land in Guyra might be higher,” Cr Hietbrink said.

The figures will be used to help councils determine the amount landholders will pay in council rates.

NSW Valuer General, Simon Gilkes, said the figures were only for land and did not include the value of the home or other improvements.

“While important, valuations are only one of the factors councils use to determine each landholder’s rating liability,” Mr Gilkes said.

“Increases or decreases in land values do not necessarily lead to similar increases or decreases in rates.”

Cr Hietbrink said while the increase in land value would have an impact on council rates, it “doesn’t mean rates will go up”.

“We have to adjust according to what we are allowed to and we can’t increase beyond the rate cap of 1.8 per cent,” he said.

Armidale Dumaresq Council land values saw an increase of 5.08 per cent.

“Council has seen strong growth in residential house and land prices over the last five years, with residential house prices continuing to increase in value,” an Armidale Dumaresq spokesperson said.

Tamworth Regional Council had a small increase of 1.92 per cent and mayor Col Murray said overall it “won’t have a huge impact” on rates.

“We weren’t expecting any huge adjustments,” Cr Murray said.

“The general rate is only one component of rate billing – there is also water and sewerage rates, which are not impacted by increased land value.” 

Sydney’s west led the state in rising land values.

Blacktown topped the state with a 47 per cent growth, followed by Holroyd (38 per cent) and Parramatta (35.9 per cent). NSW land values now amount to more than $1.34 trillion – an increase of 19.6 per cent on last year’s $1.12 trillion.

Mr Gilkes’ calculations found the residential land value of Narrabri shire, Moree Plains shire, Glen Innes Severn, Liverpool Plains shire, Walcha, Gunnedah shire and Gwydir shire did not change.