SOUTH Gippsland Shire Council’s administration panel is expected to “receive and adopt” the 2020 general valuation of property throughout the municipality at the ordinary meeting to be held at Leongatha today, Wednesday May 27, 2020 at 2 pm.
A report in the May 2020 ordinary meeting agenda notes that 20252 “rateable and non-rateable leviable properties” in the shire have a total capital improved value (CIV) of $9,735,557,000 as at January 1, 2020.
This figure represents a 5.48 per cent increase of $499,480,000 from the previous general valuation dated January 1, 2019, when the total CIV of the same number of leviable properties was $9,233,232,000.
The three-member panel, acting as the council, is required to formally adopt the general valuation of all rateable and non-rateable properties, which is undertaken annually, in line with the Victorian Valuation of Land Act 1960.
The report, prepared by the shire’s corporate and community services directorate, stated that this year’s general valuation “has now been completed by Council’s in-house valuation team under the supervision of Council’s Valuer”, Andrew Begg.
The shire council is also obliged under the Act to submit a copy of the 2020 valuation return to the Valuer-General Victoria “seeking certification as to its general trueness and correctness”, and also to “cause” or prepare a general valuation for 2021.
The report advises that this year’s general valuation is “based on levels of value as legislated at January 1, 2020 and reflects the prevailing market conditions at that date” as well as “market-based changes in the relativity between property values over the previous 12 months prior.”
The report continues that “it is important to note that although the date is prior to the COVID-19 pandemic, the valuation only distributes the rate burden and does not determine the total rates generated.”
It also states that “the next revaluation will be based on sales as at January 1, 2021” and that “analysis of sales at this time will determine if there is a shift in the rate burden between properties but again will not change the total rate revenue generated.”
Residential properties
South Gippsland Shire has a total of 15,590 residential properties, of which 14,220 have buildings on them, and 1370 do not.
This category has a total CIV of $5,679,021,000, representing just over 58 per cent of the municipality’s entire leviable property stock and includes an overall gain of 5.8 per cent which was posted across all residential Australian Valuation Property Classification Code categories.
Values of residential properties at the western end of the shire stabilised this year following higher increases last year, while smaller, more central townships such as Dumbalk, Meeniyan and Buffalo scored higher percentage value increases this revaluation as they were coming off a low base.
Leongatha increased by 4.63 per cent, while Korumburra and its surrounding villages rose by 4.78 per cent.
The value of units grew faster this valuation in comparison to last year and to other housing types, with units in Leongatha going up by 7.95 per cent, those in Foster increasing by 6.62 per cent, and Korumburra’s units gaining 10.13 per cent.
Along the coast values showed a moderate upward change, with Sandy Point increasing by 1.64 per cent, Waratah Bay by 1.6 per cent, and Venus Bay rising 5.53 per cent from a lower base. Premium coastal lifestyle properties’ value increased by 8.0 per cent.
Commercial properties
There are 678 commercial properties in the shire, with buildings on 657 of these, and no buildings on the remaining 21 properties.
Together they have a combined CIV of $285,035,000, which represents just under three per cent of the municipality’s total leviable property CIV.
This category includes large national traders through to small owner-occupied offices, and overall, the improved land and buildings value of commercial property in the shire increased by 3.1 per cent.
The largest commercial market of Leongatha remained stagnant, the Korumburra commercial property values grew by 1.87 per cent, and Foster’s rose by 3.22 per cent.
Demand for commercial properties with secure leases remains strong, however high vacancy rates in some precincts has put downward pressure on rental returns.
Industrial properties
There are 412 industrial properties in South Gippsland, with buildings on 371 of these, and 41 properties without buildings.
The industrial properties have a total CIV of $410,911,000, representing 4.2 per cent of the shire’s total leviable property CIV.
The value of Industrial property increased by 0.9 per cent, allowing for a slight downward skew caused by specialised industrial properties such as wind farms and quarries which are, according to the council report, “depreciating assets due to obsolescence, reducing resources and limited permitted life spans.”
Rural properties
South Gippsland Shire has 3239 rural properties, with 2614 featuring buildings, and the balance of 625 with no buildings.
The rural properties have a total CIV of $3,066,360,000, representing 33.21 per cent of the municipality’s total leviable property CIV.
The council report notes that “the demand for larger high-quality dairy properties remains strong” and that “demand for premium undulating grazing land has remained steady.
“Steeper, more remote land has experienced increased demand over the period with some good increases noted in more desirable and better located properties,” the report continues.
“The majority of properties under 50 hectares with existing dwellings have increased in value by varying degrees” and that “the residential content of these properties generally reflects a higher value gain the closer … they are to … Melbourne and the Latrobe Valley” which has “skewed the overall statistical increase of the rural category upwards to an overall increase of 5.7 per cent.”
The report stated that “well-established farming districts have experienced an increase in CIV levels since the 2019 revaluation”, with the “premium areas of Leongatha and Korumburra rural … steady with increases of 6.8 per cent and 11.4 per cent respectively.”
The report indicates that “the average increase for properties over 50 hectares is 5.3 per cent.”
Non-rateable leviable properties
There are 333 non-rateable leviable properties in the shire, with buildings on 305 of them and 28 properties with no buildings.
Together have a total CIV of $118,602,000, representing 1.22 per cent of the municipality’s total leviable property CIV.
This category includes properties exempt from rates however they are assessed for the Fires Services Levy.Types of property include water authority assets, local government assets, some electrical assets and places of worship and the overall value of this category increased by 2.46 per cent.
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