THE capital improved value of residential properties on the Mornington Peninsula rose 9.04 per cent in the year to January 2021.
The shire comprises 103,294 rateable assessments of which 91.83 per cent are residential properties, 1.12 per cent are farm rate properties, 3.37 per cent are commercial properties, 2.42 per cent are industrial properties and 1.27 per cent are boat sheds.
Over 2020-21, site value (SV) rose 9.87 per cent, capital improved value (CIV) 8.72 per cent and net annual value (NAV) 9.87 per cent.
Capital Improved Value will be used as the basis for rating of all properties in the shire for 2021-22, with the rate reflecting property valuations as at 1 January 2021. While the rate-in-the-dollar increase was capped at a 1.5 per cent, the higher valuations will lead to bigger rate bills for many property owners.
Valuations team leader Lauren Ashley, speaking to the General Valuation Return and Valuers’ Report at last week’s council meeting, said the general valuation “re-establishes equity between ratepayers by updating valuations, thereby redistributing the rating burden”.
“The 2021 general valuation results in a swing of the rate burden towards the Mornington Peninsula Agricultural Rate (MPAR) and boatshed properties, and to those residential properties where the CIV moved at a higher rate than the average increase of 8.72 per cent.
“The proportions of the rate burden levied on the residential sectors will be largely unchanged.”
The annual service charge is $338 and $140 for the collection of a green waste bin.
Boatsheds floating at high tide
THE Mornington Peninsula’s 1303 boatsheds have experienced higher than average growth in value over the last decade – with 60 selling during 2020.
“They are generally a tightly held asset often retained by families and handed down over generations,” valuations team leader Lauren Ashley said.
“Boatshed values have increased in value largely driven by increased buyer demand as people change their lifestyles choices, opting for a sea or tree change.
“Restrictions on international travel have also turned local holidaymakers to the boatshed market, again increasing buyer demand and ultimately values.”
Values down on commercial properties
COMMERCIAL properties in Mornington Peninsula Shire decreased in value by 1.76 per cent over the year 2020-21, according to data revealed in the council’s Budget papers last week.
Councillors were told there were few transactions among commercial properties last year, with “lockdown restrictions effectively shutting the sector down”.
Vacancy rates increased in most retail strips during the middle of 2020, before showing some positive signs towards the end of thebyear and early 2021.
Valuations team leader Lauren Ashley, speaking to the General Valuation Return and Valuers’ Report, said “apart from the impact of COVID, another cause of higher vacancies in the commercial precincts is a continuing shift of commercial tenants moving to the industrial precincts where rent is generally cheaper”.
“Despite the higher vacancies and other obvious hurdles with the sector, overall rents and capital values only marginally reduced as investors look medium to long term,” she said.
The council was told industrial CIV values this year had risen by 3.46 per cent. “This increase is largely as a result of increasing demand, with most industrial areas close to capacity,” Ms Ashley said. “Occupancy rates across all bayside industrial estates are near 100 per cent with very few vacancies, apart from the newly constructed warehouses advertised for lease or sale.
“There is a continuing change in tenancy type with an increased presence of beverage industry and boutique businesses positioning themselves in these estates rather than the traditional commercial precincts.”
She said a limited future supply of industrial land had also contributed to the increase in value.
Upside to being down on the farm
PROPERTIES paying the Mornington Peninsula Agricultural Rate enjoyed the highest growth in value of any sector on the peninsula this year: 15.02 per cent.
Data revealed in the council’s Budget papers last week showed rural properties, representing only 1.12 per cent of the shire’s total rateable properties, had enjoyed boom in value.
“The high growth in value is a result of buyers pursuing space and better lifestyle/work balances,” valuations team leader Lauren Ashley said. “The proximity to the Melbourne Central Business District and amenities offered on the Mornington Peninsula has attracted unprecedented demand for rural properties.
“All localities within the rural Green Wedge areas not attracting the [agricultural rate] generally increased in value, evenly returning 10-15 per cent growth across the board.”
Properties in Dromana and Flinders were the standouts, increasing by 18 and 17 per cent compared to the average growth of 13 per cent.
A shift in values for sites greater than 20 hectares meant these properties rose in value by 19 per cent, while sites less than 20 hectares rose by 13 per cent.