Annual figures released by the state's Valuer General today show land values have reached more than $1.34 trillion.
Parramatta, Blacktown and Holroyd, all in Sydney's west, recorded the largest growth in residential land values.
In Blacktown, values increased by 47 per cent in 2014-15.
In Holroyd, they increased by 38 per cent, and in Parramatta by 25.9 per cent.
Valuer General Simon Gilkes said the increases had been partly fuelled by major improvements to transport infrastructure and historically low interest rates.
"It seems to match up with areas that were the more affordable suburbs," he said.
"In recent years, it's been some of the higher valued areas, in closer to the city, that have had the greatest increase.
"That now seems to have flowed out to the more affordable suburbs."
Growth of more than 30 per cent was also seen in Canada Bay (30.1 per cent), The Hills Shire (31.8 per cent) and Randwick (34.8 per cent).
The only area outside greater Sydney to record growth of more than 30 per cent was Shellharbour, in the Illawarra region, where values increased by 35 per cent.
Land value reductions in some regional, rural areas
Median residential land values of $1 million were recorded for the first time in Canada Bay, Lane Cove, North Sydney, Strathfield and Randwick.
In regional and rural New South Wales, eight areas experienced reductions in land values.
The largest drops in value were in Cobar (16.4 per cent), Muswellbrook (10.4 per cent) and Bogan (6.4 per cent).
Mr Gilkes said the falls in regional and rural areas were due to local factors, including industrial downturns.
"Some of the mining areas experienced downturns and that led to reduction in values in some of those areas," he said.
The figures represent land values alone, and do not include the value of buildings.
Mr Gilkes said they would help councils determine rates, but were not the only factor used to decide how much landholders must pay.
