Targeted development is the key for local councils to address the overall declining land values released by the office of the NSW Valuer General last week, according to Glen Innes Severn Council’s manager of finance Eric Brown.
The total land value of the Glen Innes Severn Local Government Area (LGA) has seen an overall decrease of approximately $213 million from the market peak in July 2010. Mr Brown said that council is yet to upload the information gathered by the Valuer General into its prospective budget and he could not speculate on the possible impact on rates income.
Mr Brown said that developments triggering greater investment in the local government area are one combative strategy local councils could adopt to address declining land values. Australia Asia Flight Training (AAFT)’s Glen Innes Flight Academy is one example of developments that prospectively encourage investment in the Glen Innes area, promoting local employment and stimulating the local economy.
Mr Brown said that addressing declining land values in a local government area is about local governments acting proactively to encourage prospective investments in the area.
The total land value of the Glen Innes Severn LGA was approximately $779 million as at July 1, 2013, reflecting an overall decrease from the total land value of approximately $992 million of July 1, 2010, NSW Valuer General Philip Western said.
“The decline in land values is not consistent throughout the district and across all land classifications. Superior quality and better-maintained rural properties have held their value better than poorer quality or poorly maintained properties.
“This situation reflects market conditions where supply has exceeded demand with land values being increasingly influenced by farm returns.
“Land values are one factor considered by councils when determining rates. The Notice of Valuation gives landholders the opportunity to consider their land value before it is used by council.”
Glen Innes Severn is among three neighbouring LGAs experiencing a land value decrease. Inverell and Walcha have experienced an overall decrease of $90 million and $43 million respectively, and Tenterfield has dropped by $192 million.
Glen Innes Severn has experienced the most significant monetary drop in land values, falling by $213 million, however Tenterfield experienced the most severe cut, losing 10.02 per cent of previous value.
Armidale Dumaresq is alone in experiencing an increase in values since July 2010, rising by approximately $110 million.
Mr Western said that the primary factor in determining land values is through real estate analysis.
“Property sales are the most important factor considered when determining land values. Real estate analysis in the Glen Innes Severn LGA has been comprehensive during the course of the 2013 valuation program with 70 residential, nine commercial, six industrial and 40 rural sales analysed,” he said.
“Residential land west of the railway line and land in the village of Emmaville has shown a moderate decrease, while the value of large lot residential land south of the Gwydir Highway and land in the village of Red Range has remained steady.
“The value of rural land varied, with the value of rural grazing, mixed rural grazing and farming properties in Deepwater, Dundee, Red Range, Shannon Vale, Glencoe, Ben Lomond and Wellingrove showing a moderate to strong decrease. The value of hobby farm land also showed a strong decrease.”
While Glen Innes Severn Council is yet to release any definitive response to declining land values in the area, Mr Brown said he expected the issue to go before council in April.
While Glen Innes appears to be on the decline, NSW has performed remarkably well exceeding a record combined land value of $1.003 trillion, the first time that state land values have exceeded the trillion dollar mark, reflecting an overall increase of 3.21 per cent.
According to Glen Innes Severn Council’s manager of finance Eric Brown, targeted development is the key for local councils to address the overall declining land values released by the office of the NSW Valuer General last week.
This story Administrator ready to work first appeared on Nanjing Night Net.