Gippsland › Latest news › Bass Coast Local NewsRevaluation Of Bass Coast Finds Property Values Increase Across The ShireBass Coast values increase by approximately 50% Land and house values across Bass Coast have increased by an average of approximately 50% in the past two years according to a valuation completed by Council earlier this month. The valuation of all 23,758 properties in the Shire was calculated using the Valuation Best Practice (VBP) standards that are set by the State Government and the Valuer General’s office. Every council in Victoria must use these standards when valuing properties. Every council must now revalue all properties every two years. Bass Coast Shire Council’s valuation will be sent to the Valuer General for certification. "It would come as no surprise to most people that the value of properties in Bass Coast has increased significantly since the last valuation in 2000," said Cr John Gains, Mayor of Bass Coast Shire Council. "The construction industry is booming and real-estate sales are very healthy." Property values for residential and rural properties are primarily based on available property sales in the real estate market. The recent sales prices of properties are collated and analysed. The results are then applied to properties of a similar standard or in like categories. This information is collected on a constant basis in order to determine movements in property prices. A comprehensive, bulk computerised approach is then used to determine property values. "The value placed on each property is current and closely reflects market values," said Cr John Gains, Mayor of Bass Coast Shire Council. "Property values are not linked to indexation or past performance." "While the average property value increase is 50%, it’s difficult to talk in general percentage terms because land values and home lots are so diverse across our 800km2 area," said Cr John Gains. "For example, land in the most affordable seaside areas was quite inexpensive valued at around $12,000 in 2000," explained Cr Gains. "This land is now worth more than $24,000, at least a 100% increase in value." "Basically, this land had a low value to start with so that any increase is going to be high in percentage terms," he said. Vacant land on town fringes or in housing estates is in high demand, pushing the price higher, which in turn has skewed the average valuation. "The value of homes and land is basically tied to supply and demand," said Cr Gains. "The above average increase in value of vacant residential lots because of the high demand has distorted the overall increase in the value of residential land . "Previously vacant residential broadacre land had some distant development potential but it was not highly sought after so prices remained low," said Cr Gains. " "Over the past 2 years the real estate market in Bass Coast has been extremely robust, and vacant residential land is one of the most highly sought after," he said. "Therefore its value has increased markedly." Land with proximity to water and good views is also in strong demand, increasing their value. Rural land has reflected steady but moderate increase of an average 17%. This is healthy in historical terms with demand partly driven by good stock and commodity pricing over the 2000/2001 period. "Just like residential land, rural properties with close proximetly to water or good views also had steady buyer demand," said Cr Gains. Commercial properties in most towns have reflected steady but generally minor increases of less than 23%. Commercially zoned land has generally increased in the central commercial areas. Some speculative purchases have occurred, presumably with the expectation of continued population increases and business demand within the Shire. Industrial property, while a minor component of land in the Shire, has also increased in value. There has been some subdivision development of industrial land, as well as new construction on this land. Commercial properties are valued on an individual basis. Like residential and rural properties, sales information provides the foundation for the valuation, with analysed investment criteria also considered. The Valuer-General’s office requires Council to conduct a survey of all commercial property owners so all relevant information can be obtained. This survey was completed in October 2001. Analysis of sales along with rental and outgoings information from the survey is vital to ensure a fair, equitable and accurate market valuation is returned. "This increase in value of properties reflects the current supply/demand imbalance," said Cr Gains. "Bass Coast is simply becoming a very popular place to live." Valuations do not influence total rate collections but act as a method of apportioning rates throughout the municipality. "In setting the rate in the dollar for 2002/03 we have taken into account the overall increase in the valuation base of the Shire and then reduced the rate in the dollar that is charged to compensate for the increase in overall valuations," Cr Gains said. "This way, Council is ensuring that we only raise as much revenue as is necessary to provide services and facilities," he said. (The reasons for the increase are outlined in the media release, "Council Considers Proposed Rate Rise"). Council has assessed that it is necessary to increase total revenue from rates and the municipal charge by 12.5% in 2002/03 to fund the infrastructure and services the community needs. As the increase in the overall valuation of the Shire is large at 50%, Council proposes to significantly reduce the various rates in the dollar by approximately 26% to ensure that the full increase in the total valuation is not translated into unnecessary rate rises. "You may ask that if rates are increasing by an average of 50% and Council is increasing rate revenue by 12.5%, why don’t rates in the dollar fall by 37.5%, which is the difference between 50% and 12.5%," said Cr Gains. "The reduction in the rate in the dollar needs to be 26% because the reduced rate is applied to the whole value of the property, not just the amount that it has increased," he said. The following example shows how this would work with a residential property that was valued at $100,000 in the 2001/02 rating year and $152,400 in the 2002/03 rating year (the average increase in the valuation of developed land is 52.4%).
Source: www.gippsland.com Published by: news@gippsland.com
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