In particular, residential land - which grew in value 15 per cent in FY18, decreased by 0.7 per cent in FY19 according to figures released by the NSW Valuer General's office yesterday.

The Valuer General calculated overall growth in land value - including residential, commercial, industrial, rural and other - in the Cootamundra-Gundagai region at 8.6 per cent, significantly below the Riverina average of 12.2 per cent.

Cootamundra-Gundagai performed better than the rest of the Riverina in the growth in value of commercial land, which grew by 4 per cent compared with 1.5 per cent overall.

However in non-urban and rural land, growth of 10.6 per cent was was below the Riverina average of 18.2 per cent.

The VG's report, prepared by Wagga-based consultancy Opteon Property Group, described Cootamundra-Gundagai residential land values as "steady" between 2018 and 2019.

"The land located east of the railway line in Cootamundra was an exception, having a moderate decrease due to weakening demand for residential properties in that area," it stated.

Although rural land value increases were below the regional average, the report said it was still a strong increase.

"There has been continuing strong demand for good broad acre mixed farming on the back of strong commodity prices and increased investor demand coupled with a shortage of supply.

"Rural land values have held despite recent dryer seasonal conditions, with a trend of existing enterprises adding to their holdings.

"Demand was more subdued for secondary mixed farming, grazing, hobby farms and smaller lot properties with land values increasing slightly or remaining steady."

The slight increase in commercial land values in Cootamundra-Gundagai was attributed mainly to a strong increase in land values in the main business area of Gundagai due to increased demand with limited supply.

Cootamundra was the Riverina's star performer in land value in FY18, with 30 per cent growth in rural land values, compared with a Riverina average of 18.6.