PROPERTY values in Warrnambool have been stripped by $18 million in the past two years.
The drop follows 12 years of strong growth where overall prices jumped 370 per cent between 2000 and 2012.
The capital improved value (CIV) of the city’s real estate is now standing at $6.459 billion, representing a 0.28 per cent fall since the last revaluation in 2012.
Figures to be presented at tomorrow night’s city council meeting show sustained growth between 2000 — when the total value of rateable property was $1.753 billion — and 2012, when it reached $6.477 billion.
The drop in the past two years is attributed to a fall in commercial vales of five per cent and industrial values of 3.4 per cent, stripping more than $68 million off property values.
“Commercial property values have declined, reflecting a softening in this sector, a trend that is common across Australia,” the report says. “Similarly, industrial property values have reduced by 3.4%.”
Residential real estate, which makes up the huge bulk of the city’s property values, remained solid. It recorded a slight increase across the two years of about $50 million or one per cent, while farm values rose marginally by $258,000.
The report says new developments and building approvals also impact on the overall movement in valuations, increasing the base figure and not allowing for a “like for like” comparison.
The number of rateable assessments has shown steady growth over the past 10 years, rising from 13,560 properties in 2003-04 to 16,818 in 2013-14.
“This confirms Warrnambool as a progressive and popular regional city that continues to thrive as a popular choice for many opting for that sea-change lifestyle and reflects the release of subdivided land in the municipality.”
Figures presented by city valuer Les Speed show the average residential property is now valued at $328,000.
This is on par with the latest Valuer-General’s report, released last week, which found that Warrnambool’s median house price has reached $328,800.