Melbourne investors face likely higher land tax bills as CBD values double statewide 6.3% overall rise

Jonathan ChancellorOctober 2, 2012

The total capital improved value of residential property across Victoria rose 11% between the 2010 and 2012 valuations, according to the latest data from the Victorian Valuer-General.

There was a 12% increase in rural property, a 9% increase in commercial property and a 7%, the Valuer-General Victoria boss Robert Marsh said.

The City of Melbourne, including Docklands, recorded the highest rise in values among Victoria’s 79 municipalitie,s with CBD investors now possibly facing higher land tax bills.

In 2012, the total capital improved value of the Melbourne municipality properties was $74.6 billion - compared with $65.5 billion in 2010 and $53.9 billion in 2008.

Boroondara recorded the second highest value of private property, with $71.8 billion, followed by Stonnington with $57.8 billion, Mornington Peninsula with $57.8 billion and Monash with $45.9 billion.

The lowest total valuations were recorded in Hindmarsh, with $1.04 billion.

The value of private property in Victoria now sits at $1.39 trillion, according to the latest data from Valuer-General Victoria.

The figure compares with $1.3 trillion in 2010, reflecting a 6.3% overall jump.

The total percentage rise is not necessarily reflective of the actual increase of existing property, as it has been also influenced by the fiscal outlay on new property developments and subdivided housing estates.

In Victoria’s biennial revaluation all private property was revalued by councils as of January 1, 2012, covering a total of 2.7 million residential, industrial, commercial and rural properties.

The data shows the rate of growth has slowed from the 2010 revaluation, when there was a 14.7% increase in value, and an 18.4% increase in 2008.

2012 – $1.392 trillion up 6.3%

2010 – $1.304 trillion up 14.7%

2008 – $1.112 trillion up 18.4%

2006 – $907 billion

The biggest increase in value was recorded in Macedon Ranges and Mount Alexander, where the total value of private property increased by 13.8% for both municipalities up from $8.5 billion in 2010 to $9.8 billion in 2012 for Macedon Ranges and from $3 billion in 2010 to $3.5 billion in 2012 for Mount Alexander.

Melton was next biggest rise with a 13.5% increase from $15.9 billion to $18.4 billion along with Yarra Ranges also with a 13.5% increase from $25.4 billion to $29.3 billion.

"These increases in value were mainly due to a larger number of assessments in these municipalities as a result of new housing developments," the Valuer-General noted.

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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