But the greatest declines came in Sydney's suburban ring. The Sydney coast north region – comprising the councils of Hunters Hill, Lane Cove, Mosman, North Sydney, Northern Beaches and Willoughby – suffered an 11.4 per cent decline in land values.

The Sydney coast south region – Bayside, Georges River, Randwick, Sutherland, Waverley and Woollahra – dropped 11 per cent and the Sydney central region – Burwood, Canada Bay, Canterbury-Bankstown, City of Parramatta, Cumberland, Inner West, Ku-ring-gai, Ryde, Strathfield - shed 9.8 per cent in land values.

Notices of valuation will be sent out to all landowners over coming months.

But the falls don't necessarily mean Sydney households can anticipate a cheaper council rates bill in the new financial year. While state government land tax is calculated on an average figure based on a rolling three-yearly total and will over time take lower prices into account, local councils set their rates differently.

Councils use land valuations to set rates, but work to a budget and set their rates on land values within a range determined by the state's Independent Pricing and Regulatory Tribunal.

"It doesn’t mean any increase or decrease in general terms will result in an increase or decrease in rates by a similar amount," Mr Chudleigh said.

And even though councils use the latest valuations provided by the Valuer-General to set rates, the 1 July 2019 valuations are the first to be sent to councils in three years, since the 1 July 2016 valuation, a time when Sydney property values were booming.


It was not possible to immediately compare the 2016 valuation with the 2019 valuations as the regional categories used by the valuer-general have changed since then. However, the total value of NSW land as at 1 July 2016 stood at $1.5 trillion, below the 2019 total.

The valuer-general conducts valuations on all land each year, but is only required to send local councils valuations every three years. However, the valuer-general will send councils in bushfire-affected regions figures arising from the next valuation on 1 July 2020, so they are aware of the extent to which the fires have affected land values, Mr Chudleigh said.

Despite the use of the formula to adjust council rates to fit a required budget, the valuer-general wanted the councils to be aware if fires had affected regional land values, Mr Chudleigh said.

"We are going to offer those valuations to all fire-affected councils so they may use them the following year," he said.