Media Releases 2012
Average 3.8% increase in value of Yarra homes
06 June 2012
The value of the average residential property in Yarra rose by 3.86%, from $625,000 to $650,000, in the two years to January 2012, according to Council’s revaluations.
The suburbs which experienced the highest average growth in residential value were Alphington (16.17%), Collingwood (8.40%), Abbotsford (5.76%) and Clifton Hill (5.33%).
Residential properties in Fitzroy (4.76%) also benefited from above average increases in value.
At the other end of the scale, North Fitzroy (1.20%), North Carlton (2.36%) and Richmond (2.84%) experienced below average increases. Within suburbs, there can be significant variations in values according to matters such as housing style, age and size.
The value of the average non-residential property in Yarra rose by 3.03% over the two year period, slightly below the residential average.
Yarra Mayor Cr Geoff Barbour said the revaluations reflected the general slowdown in the growth in Melbourne property values. For example, the 3.86% average increase in this year’s revaluations was much lower than the 10% average increase recorded in the 2010 revaluations.
Cr Barbour said all Victorian Councils were required to reassess the property values in their municipality every two years. He said Council’s Valuations team studied sales property data and inspected some properties to generate the revaluations.
He said the revaluations would be used to determine the amount of rates that each property owner would be charged when rate notices are sent out this August. The revaluations, of themselves, would not increase the total amount of rate revenue collected by Council but would instead reallocate each ratepayer’s contribution based on their property’s valuation.
Council is however increasing its rates as part of this year’s Council budget. The rates charged to the average Yarra ratepayer will increase by 4.2% or $56.96. The average rate notice for a residential property in Yarra for 2012/2013 is expected to be $1414, compared with $1357 for 2011/2012. Additional revenue from new properties and interest means that Council’s total rate revenue will increase by 5.9%.
“While the average increase in property values is quite low, the values of some local properties will have increased significantly,” Cr Barbour said.
“Owners of properties that have increased in value above the average will be required to make a higher contribution to the rates that Council collects to provide its services,” he said.
“Conversely, owners of properties with below average increases in value will receive below average increases in their rates or, in some cases, actual decreases.”
Cr Barbour said Council was conscious that an increase in property value didn’t necessarily mean that every property owner had an increased capacity to pay their rates.
He said Council had increased its rates rebate for pensioners from $130 to $136, which will apply on top of the $198.20 rebate provided by the State Government.
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