Reports of soaring valuations in Ipswich – as high as 20 per cent for some residential land – might have sent panic waves through the community this week.
But Ipswich City Council has moved to reassure residents that it does not mean there will be record rises in rates in June’s Budget.
The average general rate increase for residential properties in the 2018-19 Budget handed down by council last year was 2.5 per cent.
Queensland’s Valuer-General Neil Bray said new valuations, which reflected up to date and current land values and showed values in the Ipswich City Council area, had increased by as much as 8.8 per cent overall since the last valuation in 2017.
Interim Administrator Greg Chemello said it was important to understand that any land valuation increase does not automatically mean there will be a corresponding increase in your council rates.
“Your council determines your rates. Council uses property values as the basis for equitably distributing the rating burden across the local government area,” he said.
“Each year, council sets a revenue target as part of its budgeting process. Council will determine a ‘rate in the dollar’ by dividing the total rates revenue needed by the total amount of property valuations on their roll.
“So a higher total amount of property valuations across the city does not necessarily mean higher rates.”
South Ripley land values have increased by more than 20 per cent in the past two to make it one of Ipswich’s most expensive suburbs. Ripley and Ebenezer experienced 18.3 per cent and 19.1 per cent jumps respectively. Augustine Heights was the highest with a median value of $265,000 after 10.4 per cent growth.
“Residential values have risen in Springfield and Ripley, while commercial and industrial areas also increased,” Mr Bray said.
“The rural residential and primary production markets increased and some localities such as South Ripley reflected moderate increases in average values due to demand for new and affordable land with the average value of residential land in Springfield increasing from $215,000 to $237,500.
“Steady demand for rural home sites particularly about the eastern edge of the city resulted in a minor increase overall.”
In December, council and West Moreton Health signing a Memorandum of Understanding that will eventually see hundreds of additional healthcare staff working in new medical facilities in Ipswich Central.
Hospital staff will move into four former council building and in the longer term West Moreton health plans to progressively develop inner city sites into contemporary hospital and healthcare facilities that will form a vital part of the new Ipswich Health Precinct.
“High demand for land in the emerging Ipswich CBD medical precinct has resulted in significant increase in commercial land value,” Mr Bray said.
“Otherwise commercial land value had a minor increase overall. The industrial land market had a slight increase overall.”
Other big movers included service stations, childcare centres, shopping centres, former extractive industries (i.e. Swanbank/New Chum area allowing high impact industry).
Mr Bray said land valuations are used by councils as a guide to determine what to charge in rates, for state land tax and state land rental amounts.
“These valuations will become effective 30 June, however I encourage landowners who believe they have additional or new evidence which may alter their new valuation to provide this information through the online objections process via www.qld.gov.au/landvaluation or at the address shown at the top of their valuation notice by 7 May 2019,” he said.
For a more detailed breakdown of the Ipswich City Council valuations, visit here.
Hard copies of the valuation list for the Ipswich City Council can also be viewed at the Department of Natural Resources, Mines and Energy, Level 4, Icon Tower, 117 Brisbane Street, Ipswich during normal business hours until close of business on 4 June 2019.