Lift in land rates forecast

INCREASING property values will far outweigh a hippocket rates hit when blocks of land in the Cairns region are revalued for the first time in two years.

New land valuations, to be released in March next year, follow advice from Queensland’s Valuer General.

State Valuation Service’s David Paton said early State Valuation Service estimates suggest land values in prime commercial sites and high-end residential areas will increase.

RE/MAX Cairns real estate agent Ray Murphy said increasing land values were a positive sign for land owners.

“The increased value of the home will outweigh if there is a slight rate increase,” he said.

Redlynch ratepayer and real estate agent David Jeffries indicated he was expecting another land value increase.

“Wages growth has not kept up with CPI so I don’t think it helps anyone,” he said.

“Properties are harder to sell, people can’t afford them, banks are restricting their lending, there is all this macroeconomics affecting everything.

“But if the bean counters come and say values have increased … I assume council will increase rates.”

Mr Paton said land valuations were used to determine land tax, rental price for leased state land and by local councils to help determine rates.

“(However) it is important to note councils consider a number of other factors when setting rates,” he said.

Land values increased 8.9 and 8.4 per cent in 2015 and 2016 respectively, a sharp increase on the 2.9 per cent rise in 2014.

Cairns Regional Council told the Cairns Post rates were set on land valuations determined by the State Valuation Service.

“When land valuations rise, it generally means the rates on that property will yield more.

“Some properties do go down in valuations,” a spokeswoman said.

“Council takes into account land valuations when setting the rate in the dollar for rates each year.”

Landowners in Weipa will also receive new land valuations in March next year.