Residential property values in Broadmeadows, Tullamarine and Gladstone Park have risen by more than 15 per cent in the past two years, driving up council rates for some households.
Latest Hume council valuations reveal that Broadmeadows had the steepest rise in property values, with the median house price rising 16.49 per cent, from $285,000 in 2014 to $332,000 in 2016.
Tullamarine was next, with a 16.15 per cent increase, followed by Gladstone Park (15.41 per cent). The average increase in residential values across Hume was nine per cent, while overall, property values across the municipality rose by seven per cent.
Valuations are conducted every two years, and are used by councils to calculate rates. The average rate rise across Hume will be 2.5 per cent, or $45 per household, for 2016-17, in line with the state government’s cap on rate increases.
However, increases will be higher in areas where property values have been climbing.
Hume council spokesman Michael Sinclair said rates are calculated by dividing the total income the council needs to obtain from rates by the total value of all properties in the city. The result is known as the rate in the dollar.
Individual property rates are then calculated by multiplying the property’s value by the rate in the dollar.
“Council does not collect extra revenue as a result of the valuation process. Valuations are simply used as a tool to assess the rates payable for each property.”
Residents can appeal their property valuations by contacting the valuations department within two months of rates notice being issued. Details: www.hume.vic.gov.au
