Revealed: Beachside suburbs where rates will increase by 10 per cent

These Gold Coast suburbs have some of the city’s most expensive property but they’re about to become some of the worst to live for one specific reason. SEE WHY

SOME beach suburb property owners are facing at least a 10 per cent rate hike due to soaring property values – more than double the average increase of 4.3 per cent.

The council on Tuesday delivered its 2022-23 budget where the average general rate will be about $3903 up from $3742 last year with councillors likening the weekly increase to “half a cup of coffee”.

But beachfront property owners are now bracing themselves for a much higher rates bill because their personal notices will be calculated on State Government land valuations.

The Bulletin can reveal the suburbs most likely to get rates spikes are the following:

■ Palm Beach (75.4 per cent land valuation increase) and Burleigh Heads (65.5 per cent).

■ Burleigh Waters and Merrimac (both 60 per cent), Varsity Lakes (59 per cent) and Currumbin (58.8 per cent).

■ Tugun (51.1 per cent) Miami (50.8 per cent), Tallebudgera (50.5) Mermaid Beach, Mermaid Waters and Tallebudgera Valley (all 50 per cent).

The median value for all residential properties had increased by 37.1 per cent. Since 2019, land value has risen from $350,000 to $480,000.

Cranes

The Mayor on ABC Gold Coast radio responded to a text from a Currumbin property owner about his likely rate rise after he claimed his property increased in value by 85 per cent.

“I think there’s some calculation, there will be a 10 per cent rate hike there,” the Mayor said.

He later told the Bulletin the unimproved value (UV) was only one consideration when council was setting its rates base.

Mr Tate said the council averaged out the UV over three years to ensure any increase in the actual value was “smoothed with its general rate calculations”

“We have more than 160 rating categories in the city so, like other local councils, we categorise property into the most appropriate category to calculate the general rate which is only one of the rates levied,” he said.

“There are many variables to consider when ascertaining the overall rate increase. The adopted budget will see an increase of 4.3 per cent to the total rate bill for a stand-alone house used as the owner’s principal place of residence attracting the average general rate.”

The suburbs which had seen the lowest land value increases were Yatala (9.9 per cent), Steiglitz (10.7 per cent), Staplyton (9.5), Ormeau (9.3), Jacobs Well (10) and Lower Beechmont (10.1). No change occurred in the hinterland communities of Springbrook and Austinville

Currumbin Beach — property hot spot. (AAP Image/Dave Hunt).

A State Valuation Service (SVS) report revealed the surge in development on the back of the historically low interest rates experienced by the market in recent years had caused the massive spike in land values.

“An increase in interstate migration and investment, a shortage of available stock, and low interest rates have all contributed to land values increasing,” the report said.

“The multi-unit residential lands, especially within prime waterfront localities, have increased significantly.

“This was particularly evident in the southern part of the coast due in part to the ongoing progression of stages three and four of the Gold Coast light rail.”

Mr Tate reaffirmed his support for the early payment discount for property owners.

“I was disappointed that a councillor proposed, at the 11th hour, we axe the 10 per cent discount for investment properties,” he said.

“My concern is that if we spook investors at a time when we need them, it could have a two-fold effect – force rents up due to less supply and further, send a message that we don’t respect their investment in our city.

“I would put my mayoralty on it at the polls as I will always support a pay-early discount for all ratepayers, whether owner-occupier or investor.

Mayor Tom Tate with the new budget. Picture Glenn Hampson.

“My challenge is for any councillor who wants to end the pay-early discount to take it to the 2024 election. Make it very clear on their election material that they plan to scrap the 10 per cent discount.

“Let the voter decide but I’m pretty sure of the result.’’

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