The value of residential land in the Shoalhaven has dropped on average by more than 15 per cent since July 2022, according to the latest figures issued by the NSW Government’s land valuer.
The State Government has written to landowners in the Shoalhaven Local Government Area (LGA) advising of the changes to their land values based on market conditions at 1 July 2025.
New valuations are provided to all councils across the state by the Valuer General (VG) at least once every three years to be used for rating. The latest values will be used to levy rates across the Shoalhaven LGA from 1 July 2026 for rating the 2026-27 and 2027-28 financial years
Director of City Performance, Katie Buckman said a decline in the value of land would not automatically lead to a reduction in rates.
“It is quite rare to see land values decline to this extent however, the Shoalhaven market has been adjusting since the post‑COVID peak in 2022. While our region was among the first to experience sharp price growth, it was also one of the first to contract as workers returned to offices in Sydney and Canberra and long‑distance commuting became unviable,” Ms Buckman said.
“While some parts of the market remained strong or held their value, particularly near towns and villages, land values declined in more remote and rural areas,” she said.
“For residents who have seen a drop in land value, this does not necessarily mean their rates will reduce in July. Council’s total rates income is not affected by land valuations and is capped each year by the Independent Pricing and Regulatory Tribunal (IPART).
“Changes in land values does lead to a redistribution of rates across the LGA, based on how individual property values shift relative to other properties within the same rating category. A reduction in rates is generally only likely where a property’s land value falls well below the average,” she said.
Council will collect around $106 million in rates in the current 2025-26 financial year. In 2026-27, Council is subject to a 3.1 per cent rate-peg, as determined for the Shoalhaven by IPART, and expects to levy $109 million in rates during that period.
Landowners can use the rates calculator on Council’s webpage to receive an estimate of their rates for the coming year. Ratepayers will need to know their new 2025 land value as well as their former valuation, from 2022 to use the calculator.
If an owner believes that their land value is incorrect, they can lodge an objection directly to the Valuer General. Council has no control over the land value set by the VG.
Rates for the current 2025-26 financial year are not affected by the new land valuations. Council is required to levy rates in accordance with the prescribed land valuation cycle for local government set by the VG, meaning the former 2022 valuation date is used for rating during the 2023-24, 2024-25 and 2025-26 financial years.
For more information about land values visit the NSW Government website.
