Billion-dollar property price boom

VICTORIAN properties have been collectively valued at a record $1.26 trillion by the Valuer-General.

This is up 16.9 per cent from $1.06 trillion in 2008 and $869.5 billion in 2006.

According to a Herald Sun report, the figures arise from Victoria's biennial revaluation in which the state's 2.6 million residential, industrial, commercial and rural properties are revalued for the purpose of imposing council rates. The Municipal Association of Victoria said this financial year council rates rose by an average 6.1 per cent.

For the fifth consecutive revaluation, Boroondara recorded the highest total property value out of the state's 79 municipalities.

The value of the area's properties was $69.4 billion, up nearly $6 billion since 2008.

The City of Melbourne, including Docklands, recorded the second highest value of private property followed by Stonnington and the Mornington Peninsula.

Lowest totals were recorded in Hindmarsh ($955 million), Buloke and Towong.

The biggest increase in value was recorded in the popular growth area of Wyndham, where the total value of private property increased by 33 per cent from $18.5 billion in 2008 to $24.6 billion thanks to the construction of hundreds of new homes.

Three municipalities - Greater Shepparton, Murrindindi and Wodonga - recorded decreases in value.

Valuer-General Robert Marsh said that since 2008 there had been a 20 per cent increase in the value of residential property.

The values for industrial property had increased 14 per cent, commercial property by 8 per cent and rural property by 7 per cent.

The overall increase in value between the 2006-10 revaluations was 45.3 per cent.

Real Estate Institute of Victoria spokesman Robert Larocca said the figures confirmed that Victorian property prices had risen at a record rate over the past 18 months, pushed higher by confidence in the state's economy and a growing population.

Read more on the Herald Sun.

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