Media Releases 2010

Average 10 pc increase in value of Yarra homes

30 June 2010

The value of the average residential property in Yarra rose by 10%, from $565,000 to $622,000, in the two years to January 2010, according to Council’s bi-annual revaluation.

The suburbs which experienced the highest average growth in residential value were Fairfield (15.97%), Collingwood (15.08%) and Alphington (14.81%).

At the other end of the scale, North Carlton (4.60%), Princes Hill (5.66%) and Cremorne (6.34%) experienced the lowest average growth in residential home values.

Fitzroy (13.93%) and Richmond (11.03%) both had above average increases. Within suburbs, there can be significant variations in values according to matters such as housing style, age and size. 

All Victorian Councils are required to reassess the property values in their municipality every two years. A standard rate in the dollar is then applied to these values to determine the rates payable for each property. Council will reduce its rate in the dollar this year to compensate for the rise in property values to ensure that total rate revenue increases by 4.5%, as outlined in Council’s 2010/2011 Budget.

Yarra Mayor Cr Jane Garrett said fluctuations in property values across different parts of Yarra and across different property sectors would determine the actual rate increase for individual property owners.

“A majority of ratepayers will see their rates increase by less than the total rate revenue increase of 4.5%, but property owners who have seen significant increases in the value of their properties can expect to see their rates increase above this figure,” Cr Garrett said.

“Many property owners will be quite happy to see their values rise above the average, but one of the consequences of that is that they are expected to increase their contribution to the rates that Council collects to provide its services,” she said.

“Council is aware that an increase in property value doesn’t necessarily mean that all property owners have an increased capacity to pay and so we have increased our rates rebate for pensioners to $125 this year. This is on top of the rebate provided by the State Government, which will be $187.60 in 2010/2011.

“Our rates rebate, which  has quadrupled since 2007, will be one of the highest in Victoria, and is just one of the ways we are working to ensure people on low incomes can continue to call Yarra home.”

Cr Garrett said that while there was a common misconception that increased property values meant more rates funds for Council, the reality was that the revaluation did not increase the total rate revenue collected by Council. She said that would be 4.5%, regardless of the revaluation.

The average rate notice for a residential property in Yarra for 2010/2011 is expected to be $1309, compared with $1258 for 2009/2010.

 


For media enquiries about this issue, please contact:

Ainslie Gowan
Coordinator Communications and Public Relations
Richmond Town Hall
333 Bridge Road Richmond
Telephone 9205 5177, 0400 933 700
ainslie.gowan@yarracity.vic.gov.au

 


 


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