Median value of residential land has increased by 17.5%

The NSW Office of the Valuer General has announced that Notices of Valuation for July 1, 2015 land values will be issued to landholders in the Gosford local government area (LGA) in January.

According to the latest figures from the valuer general, the median value of residential land in the Gosford local government area has increased by 17.5% in the year from July 1 2014 to July 1, 2015. NSW valuer general Mr Simon Gilkes said the notices to be issued give landholders the opportunity to consider their land value before it is used by council for rating. Land value is the value of the land only and does not include the value of a home or other improvements on the land.

“Land values are one factor used by councils to calculate rates,” Mr Gilkes said. Any changes to council rates due to the new Notices of Valuation would come into effect from July 1, 2016. However, changes in land value don’t necessarily lead to similar changes in rates. “Each council develops a revenue policy to use in the calculation of rates and charges to fund services to the community.”

According to the NSW minister for local government, Mr Paul Toole, the state currently has a policy of freezing council’s current rate pathways for four years so the impact of the new Notices of Valuation remains to be seen. Mr Toole has also revealed that Gosford Council intends to apply for a Special Rate Variation in 2017. Mr Gilkes said when determining land values, property sales were the most important factor considered.

The values reflect the property market at July 1, 2015. For the July 1, 2015 land values in the Gosford LGA, valuers analysed 1,145 property sales. Landholders who disagree with the land value on their Notice of Valuation have a 60 day period to lodge an objection to have their land value reviewed.

Although only about one third of NSW LGAs receive a Notice of Valuation each year, all land in NSW is valued on an annual basis. Residential land is subcategorised into general residential (R1) and lowdensity residential (R2). In the year to July 1, 2015, low-density residential properties increased in value by 17.8 per cent. Residential land values in Kariong, Springfield, Davistown, Narara and Niagara Park showed a moderate-to-strong increase, according to the valuer general.

Land values for higher valued beachfront properties at North Avoca, Avoca, Wamberal, MacMasters Beach and Forresters Beach remained steady or decreased slightly. According to the Gosford Council website, ordinary rates are calculated using the land value multiplied by the rate in the dollar.

A minimum amount is applied where the land value calculation is less than the minimum amount. That minimum amount is determined by the Independent Pricing and Regulatory Authority (IPART). IPART also caps the percentage by which local councils can increase their rates in any given year without applying for a special rate variation. Rates and charges have already been set for 2015-16 and the current residential ordinary rate is 0.00359671 cents per dollar with the minimum rate of $496.

Media release, Jan 6, 2016 Kelly Burke NSW Department of Finance, Services and Innovation Website, Jan 7, 2016 NSW Globe Information Valuation Information

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