Wagga’s residential land value has shot up by 5 per cent, but ratepayers will be spared billshock thanks to the state government’s tight grip on council purse strings.
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The NSW Valuer General has released its annual assessment of Wagga property trends, suggesting local farmland has appreciated by 9 per cent and commercial property is 6.1 per cent dearer.
A typical 806 sq m block on Atherton Crescent, Tatton, sky-rocketed 15.4 per cent in the 12 months to July 2016, from $143,000 to $165,000.
Likewise, a typical 717 sq m block on Brooklyn Drive, Bourkelands, jumped 12 per cent, from $125,000 to $140,000.
The worst performing areas have been pockets of South West Tolland and Kooringal, especially around Zieglar Avenue, Edney Street and Tichbourne Crescent.
A typical 580.1 sq m block on Brooks Circle, Tolland, dropped 20.5 per cent from $50,300 to $40,000.
As for local villages, Collingullie, Uranquinty, Tarcutta and North Wagga have had strong increases, while Mangoplah had a “very strong increase” coming off a low base.
NSW councils can only boost their income by 1.5 per cent in 2017-18, meaning rates are likely increase by a far smaller percentage than land value.
However, the average Wagga homeowner is already paying an extra $259 over five years to upgrade the city’s levee bank and businesses are forking out $2125 over the same period.
Mayor Greg Conkey said “council is not getting a windfall out of this”, suggesting council will have to reduce the rates to land value ratio.
“Some people will be paying slightly more, others slightly less, but overall council’s rate income cannot increase by more than 1.5 per cent,” Cr Conkey said.
Wagga’s Ratepayers Community founder Wes Fang worried council had been too liberal with special rate rises and urged council to live within its means.
“We do not see the need for council to petition for further special rate variations or increases above the Consumer Price Index (CPI), given they are getting more rates through increased land values,” Mr Fang said.
“I would urge council to make sure they spend within budgeted means and keep increases to minimum.”
Approximately 67 per cent of properties in the region are owner occupied, while the remaining 33 per cent are owned by investors.
