Prime land drops $600k
A DROP in land values of up to $600,000 for properties in Yamba's prestigious hill precinct will see ratepayers fork out hundreds, and in some cases thousands, of dollars less in annual rates.
Figures obtained by The Daily Examiner show drops of up to 30% over the six-year period from 2004 for land in streets including Ocean St, Pacific Pde and Clarence St.
Despite this, increasing values in other areas of the Valley will still see the council's rate revenue for the 2011/2012 financial year rise by a projected 15%.
One Pacific Pde block, valued at $2.34 million in 2004, plummeted $600,000 to $1.64 million in the 2010 valuation.
The owners of one property on Ocean St will have to fork out around $1200 less in rates per year after the value of their land dropped by $350,000 to $1.2 million.
And the reduction in land values isn't just confined to residential properties.
The value of land occupied by the Blue Dolphin resort dropped $3 million, which will see council get around $13,000 less in annual rates from the holiday park.
Without knowing the specifics impacting on Yamba land values, a representative for the Valuer-General's Department said local issues could effect the movements of valuations up or down.
“The valuations are based on sales analysis. If the sales are moving up or down this could be a factor,” the representative said.
The Valuer-General's Department will investigate factors influencing land values and The Daily Examiner will report on the results.
But PRD Nationwide Yamba principal Denise Gillies said despite the drop in land values, property prices remained buoyant.
“I think the hill area of Yamba has fared fairly well in a difficult market,” she said.
“There has been a two-bedroom, one-bathroom holiday unit sold in the last six months for $700,000.”
Ms Gillies said Yamba had held its value in blue chip areas, despite belt tightening by financial institutions impacting on buyers' ability to borrow money.
Clarence Valley Council's finance and supply manager Ashley Lindsay said he was aware of the drop in value of some properties on the hill in Yamba, and rates would change accordingly. “We won't be using those land values until the 2011/2012 financial year,” he said.
Mr Lindsay said the council's annual revenue policy, which includes rate structures, would be tabled at the April council meeting before going on public exhibition for comment.