Valuer-General ‘mass’ revaluation of SA property values could see council rates spike

Thousands of SA building owners face significant hikes in property values – potentially leading to much higher council rates.

Thousands of South Australian building owners could face significant hikes in property valuations potentially increasing the cost of some annual rates and charges.

The Valuer-General will within months finalise a “mass” revaluation of residential, commercial and primary production property values across 24 metropolitan and regional councils taking in hundreds of thousands of properties.

The new capital and site values, scheduled to come into force on July 1, will be used to set fees including council rates, land tax, emergency services and landscape levies and sewer charges.

The review – announced in 2017 and the first property reappraisal in more than 20 years – was aimed at improving the accuracy of valuations.

The first phase involving Unley, Walkerville and Adelaide Plains councils was completed in 2019 with some Unley Council property owners experiencing increases of up to 40 per cent.

The final two phases involves a further 16 metropolitan and hills councils and primary production land in Light, Alexandrina, Yankalilla, Kangaroo Island, Victor Harbor and Mt Barker councils.

A spokesman for the Valuer-General Katherine Bartolo was unable to specify the average property value increase at this stage.

Adelaide seen from the air earlier this year. Picture: Adelaide Airborne Photography

“ … data is still being compiled and analysed before the anticipated gazettal of the finalised values in May and, as such, further information cannot be provided at this point,” he said.

“It’s worth noting that the Valuer-General is an independent valuation authority and any decisions made by local or state governments on their application of her valuations (eg for land tax or rates) is made by those bodies.”

The Advertiser reported in June 2019 the largest increases in Unley Council were for commercial properties on major roads.

At the time Ms Bartolo confirmed that of 19,000 properties scoped across Walkerville and Unley, 704 properties – almost 4 per cent of residential homes and units – would see capital value increases of between 20 and 30 per cent.

Councils and SA Water set their rates by applying a rate in the dollar to the property values.

Property values are determined by factors including recent sales in the area, the condition of the building, any alterations, nearby rezonings and external market trends.

Adelaide’s median house price reached a record high $510,000 late last year.

Last April the Valuer-General halted the revaluation process due to the unprecedented turmoil caused by the coronavirus outbreak and bushfire crisis.

Property Council of Australia (SA) executive director Daniel Gannon said it was “never a trickier time” to value property in SA.

“Anecdotally we’re seeing some parts of the residential market experience low stock supply and unprecedented demand which is leading to a spike in prices,” he said.

“At the same time we’ve seen unparalleled interest in South Australia’s commercial and industrial markets from investors interstate and abroad.

“Much of this interest is a direct result of our state’s response to COVID, resulting in a heightened focus on South Australia.”

A spokesman for Marion Council – among councils to be revalued – said its rates would not be based on potential changes to property valuations.

“What Marion Council will ask the community to pay from July 1 will be based on what the council needs to deliver services to the community, fund its capital works program and new projects,” he said.

Owners can appeal property valuations.