News

Land value ‘dropping’

But rates won’t get any cheaper

LAND values in Cumberland dropped slightly in 2019, compared with the previous year’s assessment but residents shouldn’t expect the same with their council rates.
Reflecting the property market at July 1, 2019, acting NSW valuer general, Paul Chudleigh, published land values last week showing a general decrease since July 1, 2018, for the Sydney Central region which includes Cumberland.
He said councils received new land values for rating at least every three years and were one factor used to calculate rates
“Changes in land value don’t always mean a change in council rates,” he said.
“Each council develops a revenue policy to use when calculating rates to fund services for the community.
“Councils make their draft policy available for public comment.”
Data released in November shows values across Cumberland generally decreased between 2018 and 2019.
However, the trend was not consistent across all market segments, with residential zones experiencing the largest drop of 9.2 per cent, commercial zones remaining mostly steady, down just 1.6 per cent, and industrial zones showing a slight increase of 2.1 per cent.
However when compared with the previous general valuation year in 2016, there were increases in residential values, with both industrial and commercial land values experiencing strong growth.
Mr Chudleigh said property sales were the most important factor considered by valuers when determining land values.
“It is important to note that land value is the value of the land only and does not include the value of a home or other structures,” he said.
Landholders will receive a Notice of Valuation showing their land value before it is used by the council for rating, giving them time to consider their land value.
For more information on land values and the valuation system, call Property NSW on 1800 110 038 or visit valuergeneral.nsw.gov.au.