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Melbourne city - Victoria - Australia

The Real Estate Institute of Victoria (REIV) has just published an article declaring that Victorian residential property values surpassed $1 trillion for the first time in 2012.

Property is a significant part of the Victorian economy and holds a large portion of the state’s overall wealth. This is documented every two years by the Victorian Valuer General as part of the rating process for every Victorian property. The values that are established allow municipal councils to determine properties rates and the state government to set land tax liabilities.

In 2012 the Valuer General found that the combined value of the state’s 2.3 million residential properties was $1.083 trillion. This represented an 11% increase on the $978 billion recorded in 2010 and was also the first time the trillion dollar mark had been passed.

This is of course significantly higher than the value of all sales each year as only 4-5% of all homes are sold every year.

The residential sector had the highest combined value all the types of property in Victoria which is a factor of the critical role housing plays.

The commercial sector had the second highest value with the 147,000 properties recording a combined value of $148 billion. Their value increased by 9% over two years.

The commercial sector was followed by property in rural areas which had a combined value of $97 billion following a 12% increase since 2010.

The segment with the least value was the 72,000 industrial properties whose total value increased by 7% to $62 billion. This is not a reflection of the value of the sector to the state’s economy; rather it is reflection on the location of most industrial zoned properties and the fact that industrial property has a lower underlying value than does residential and commercial.

(Source:REIV)

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