The Department of Natural Resources, Mines and Energy (DNRME) has published a notice that the 2021 annual valuation program will involve approximately 261,000 properties, representing roughly 59 per cent of the total land area of Queensland. The new valuations will take effect for the purpose of local government rating on 30 June 2021.
In accordance with the Land Valuation Act 2020 (LV Act), valuations are generally issued annually across the State, except in atypical circumstances where the Valuer-General determines that there has been poor market movement in a local government area to warrant an annual valuation. In this case, the most recent valuation will remain effective.
This article briefly summarises the potential variables that have likely prompted the current annual valuation review. One of the key variables is the number of people relocating regionally as a result of the COVID-19 pandemic.
The Australian Bureau of Statistics has published evidence that indicates Australians are relocating regionally as a result of the COVID pandemic.
Queensland has been the most attractive recipient of interstate migration throughout this last financial year and this has assisted in the fluctuating movement of the property market.
The evidence gathered suggests that many people have relocated to regional areas due to the following:
- The acceptance of remote work arrangements has enabled people to relocate;
- The affordability to rent in regional areas compared to capital areas;
- The affordability to purchase in regional areas compared to capital areas together with the low-interest rates and government schemes.
- The regional areas have fewer restrictions compared to the capital areas.
The recent notice issued by the Valuer-General has advised that market-based evidence is still required to identify the actual impacts of COVID-19 from location to location, and land use to land use.
Local governments will likely face scrutiny from landowners that are adversely affected in upcoming budgets.
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