The Nhulunbuy Corporation is required by law to conduct valuations of all properties in Nhulunbuy and the Industrial Estate every three years. This valuation is an assessment of the Unimproved Capital Value (UCV) of your property on a specific date. The UCV is the value of your land without any buildings or any other improvements on it. Property valuations are undertaken by qualified professionals who analyse sales and rental figures to determine values.
How is a Valuation determined?
The unimproved land value of each block is assessed by examining the sales evidence of similar properties. Where possible, the sale price of unimproved land in the area is used as a comparison, with adjustments made for any individual difference such as size, location, purpose for which land can be used, services to property, aspect and view which may affect the value of each block of land.
Where there have been no sales of vacant land in the area, or in comparable areas, the valuer works from the sales of improved properties, and deducts amounts for improvements such as buildings, landscaping, paths, fences and the like, in order to deduce an unimproved land value of the sale blocks. These values are then used to assess the unimproved land value of other blocks.
How often does a Valuation occur?
The Nhulunbuy Corporation is required to perform a Valuation every three years. Property rates are payable per sublease, the Nhulunbuy Corporation follows the Northern Territory of Australia Valuation of Land Act 1963, as in force 1 October 2019 in the administration of the process, including the use of independent valuers approved by the valuer general.
Does a decrease in valuation mean a decrease in rates?
It is important to remember that the Valuation and the Budget are separate processes. The total valuation of all properties is used to strike the rate in the dollar, while the individual valuations apportion rate changes throughout Nhulunbuy and the Industrial Estate. The cost of providing municipal services to the town is not impacted by property values, so the overall amount of revenue that the Nhulunbuy Corporation needs to raise in order to maintain the level of service expected remains the same. What changes is the way in which each property is calculated as contributing to that amount. A decrease or an increase in valuation may not affect individual rates at all.
What is a Supplementary Valuation?
Supplementary valuations are carried out under certain circumstances, in between the general valuations to ensure valuations reflect the current property value. Examples of circumstances which may incur a supplementary valuation, include:
- Subdivision of properties
- Parcel of land sold off
- Buildings erected, demolished or physically altered
- Properties amalgamated.