Friday, February 14, 2003

Handful of sales causing upset for law of the land
"Few values are made with any actual inspection of the property. Historically values have not been an issue, but since 1997 rampant increases have been progressively rolled out by the Valuer General."

The Herald's own pages record with glee the boom in what they call "house prices" over recent years, but once it is a question of the site rent due to the public, suddenly it is all bashful and shy over the rises. One of the advantages of LVT is that valuations do not require inspections. Inspections are required to value impovements however, which is why this is much more difficult than valuing land. The High Court ruling could potentially complicate the valuer's task.

"The High Court found that concentration on the sale of scarce vacant blocks in Hunters Hill produced abnormally high valuations for typical home owners."

This is an argument that demands to be challenged.

"Many locations around NSW suffer the same scant sales situation. The Government's land sales database recorded just 9300 land sales in the 12 months leading up to its latest release of land valuations."

Sales of land, especially vacant land, are the key evidence used for establishing values. The Herald report does not say whether the 9300 sales are all the sales of land that occurred in NSW, or all the sales of vacant land.

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