Tom Parry
VALUATION figures for the Wellington Shire have risen by nearly 16 per cent in the span of 12 months, according to Victoria’s Valuer-General.
The figures were revealed at an ordinary council meeting held on Tuesday.
According to the Valuer-General’s office, at a return date of January 1, 2023, the total site value – referring to the value of land only – of all properties in the shire was $11,069,910,100.
In 2022, that same figure was $9,252,040,200, representing an increase of around 2.12 per cent over 12 months.
The capital improved value – referring to the assessed market value of both land and buildings – of all properties was $19,353,708,100.
This is up from a figure of $16,688,365,200 in 2022, or a percentage increase around 15.97.
Meanwhile, the net annual value surpassed the billion-dollar mark, reaching a grand total of $1,043,514,355.
This figure is calculated by either the estimated annual market rental of the property (minus all legislated expenses) or five per cent of a property’s capital improved value.
In 2022, this figure was $895,459,210, representing a rise around 13.92 per cent.
In a motion moved by Cr Scott Rossetti and seconded by Cr Marcus McKenzie, council voted unanimously to adopt the valuation figures.
Cr Rossetti, speaking after the vote, said that the valuation enables council “to divide up and apportion the rates across the community, but also feeds into our budget deliberations.”
“Essentially, it’s used by council simply to divide up the rates themselves, so that if everyone’s properties went up the same amount … the proportion of rates they pay wouldn’t change.”
The rise in valuation figures has been driven largely by a rise in inflation and property prices.
According to the Australian Bureau of Statistics, the annual inflation rate reached a figure of seven per cent in the March quarter – below the December figure of 7.8 per cent, but well above the Reserve Bank’s target of two-to-three per cent.
Earlier this year, the Real Estate Institute of Victoria estimated that house prices in regional Victoria had risen eight per cent on average when compared to 12 months earlier.
Speaking with the Gippsland Times, Mayor Ian Bye acknowledged that house prices had risen in the Wellington Shire.
“When you look at what property prices have done, yes they have gone up, but they’ve gone up in-line (with) what’s happened all across Australia – it’s not regionalised,” Cr Bye said.
He added that the property market was now seeing a correction as people return to the city.
“Through the pandemic, a lot of people wanted to move out of Melbourne and come to regional areas.”
“Some of those people have now (said), ‘Not for me,’ and they’re actually going back,” the Wellington mayor explained.
“But generally across the main towns, if you talk to the real estate agents, properties are still selling really well; there’s a bit more stock now, whereas through the pandemic, there was no stock – none at all.
“We now have a bit more stock they can actually deal with, but the prices have stabilised.”
While council is yet to reveal whether it will raise rates for the 2023/24 financial year, the state government has imposed a rate cap of 3.5 per cent on all councils in Victoria.
Council has provided ratepayers with an online FAQ page for rates and valuations, which can be found by visiting www.wellington.vic.gov.au/council/rates-and-valuations-faq
Ratepayers unhappy with the value of their land or property are encouraged to lodge an objection with the Victorian Valuer-General via https://ratingvaluationobjections.vic.gov.au/
