Albury City general manager Frank Zaknich, pictured with mayor Kevin Mack, says land values have dropped slightly in the city. Picture: DAVID THORPELAND values in Albury have fallen but don’t expect council rates to follow.
Figures from the NSW Valuer-General’s office show the median residential land value in Albury dropped by 1.19per cent this past year, from $101,000 to $99,800.
However, the city’s median commercial land values increased from $254,000 to $259,000, while rural median land values are up $2000 to $262,000.
Landowners will receive notification next week of their land values, which will be used in the coming months as Albury prepares its next budget including rates for 2015-16.
The drop in land values does not automatically correlate with lower rates, which last year rose in line with the state government pegged figure of 2.3 per cent.
Albury City general manager Frank Zaknich said the correlation between the two was a common misconception, and land values were just one component of the council’s calculations.
“There are a whole range of processes council goes through in terms of formulating rates and putting it out for public comment,” he said.
“If landowners aren’t satisfied with their land value, they’ve got the opportunity to review or reject that (through the Valuer-General’s office).”
Mr Zaknich said although residential values declined slightly this year, Albury had seen an overall 2.34per cent increase over the past three years.
Ray White real estate agent James Brown said the land values did not represent a huge drop in house prices overall, with the local market still “very attractive” given current interest rates.
“I don’t think it will deter the market, if anything I think it should drive a bit more activity,” he said.
Scott Mann, at commercial and industrial agents LJ Colquhoun Dixon, said the rise in commercial land values was “a natural progression”.
“As a general rule Albury is going very, very well,” he said
“A lot of national players are tenants and that’s really earmarking Albury as a place for expansion.”
Industrial land values dropped $3000 to $203,000, a fact Mr Mann attributed to the surplus of industrial land.
“It’s not that occupiers have dropped off, as a general rule industrial land development has a slower uptake.”
Residential land values in Deniliquin increased by 4.94per cent, from $46,600 to $48,900, while rural land increased $5000 to $95,400.
Residential values in Corowa and Greater Hume remained steady at $68,000 and $131,000 respectively.
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