Valuer-General building indices

Valuer-General Victoria (VGV), Building Cost Indexation Factors for the Financial Year 30 June 2018.

The following building cost indexation factors are provided for Victorian Government departments and agencies for financial reporting purposes only. These factors generally represent the increase or decrease in building costs for government type built assets for the financial year ending 30 June 2018.

Depreciation rates have not been applied to the factors. The figures are provided as an indicative average view of building costs and should only be used as a guide to assess whether a material change in building costs has occurred or not. Please note that the figures are indicative only and may vary depending on the item of construction or the exact location of the asset.

Please refer to FRD103F Non-financial physical assets and upcoming FRD 103G Non-financial physical assets for further explanation of their use in relation to financial reporting revaluation.

To allow for possible differences between Regional and Metropolitan costs, VGV have looked at numbers for an area around Metropolitan Melbourne (a semi-circle approximately from Apollo Bay around to Ballarat to Shepparton around to Warragul and down to the coast) and the balance of Victoria called Rural/Regional Victoria. Depending on availability of products and transport costs, some non­-metropolitan areas may experience higher price increases. The following figures are broad and aggregated for government based financial reporting purposes only. 

In response to the recommendation made by VAGO on its audit report Public Asset Valuation, departmental CFOs decided at the November 2015 CFO forum to use the current indices and obtain additional indexation of metropolitan Melbourne to address the volatility in market movement.

VGV engaged Certified Practicing Valuers to carry out benchmark assessments within the selected metropolitan areas and the indexation factors for the benchmark areas and the corresponding postcodes have been incorporated into this set of indexation factors, using the existing format (i.e. Residential, Englobo, Commercial, Industrial and Rural). The value of the same properties will be assessed on a regular basis and VGV will continue to provide the combined indexation factors as per the current process. 

VGV estimated building cost indexation factors for Victoria for the period from 1 July 2017 to 30 June 2018

  Residential Commercial/Industrial
Metropolitan 1.035 1.030
Rural/Regional 1.035 1.030

For clarification, agencies should also note that an Indexation factor of for example 1.02 = 2% increase and not 1.02% increase.

Past Valuer-General building indices

Previous Building Cost Indexation factors are provided for Victorian Government departments and agencies for financial reporting purposes only.

Calendar year ending 31 December 2017

VGV estimated building cost indexation factors for Victoria for the period from 1 January 2017 to 31 December 2017. 

  Residential Commercial/Industrial
Metropolitan 1.02 1.025

Rural/Regional

1.02

1.025

Financial year ending 30 June 2017

VGV estimated building cost indexation factors for Victoria for the period from 1 July 2016 to 30 June 2017.

  Residential Commercial/Industrial
Metropolitan 1.03 1.04

Non-metro/Regional

1.03

1.04

Calendar year ending 31 December 2016

VGV estimated building cost Indexation factors for Victoria for the period 1 January 2016 to 31 December 2016.

  Residential Commercial/Industrial
Metropolitan 1.01 1.035
Non-metro/Regional 1.02 1.04

Financial year ending 30 June 2016

VGV estimated building cost indexation factors for Victoria for the period from 1 July 2015 to 30 June 2016.

  Residential Commercial/Industrial
Metropolitan 1.03 1.03
Non-metro/Regional 1.01 1.01

Calendar year ending 31 December 2015

VGV estimated building cost Indexation factors for Victoria for the period 1 January 2015 to 31 December 2015.

  Residential Commercial/Industrial
Metropolitan 1.01 1.03
Non-metro/Regional 1.01 1.03

Financial year ending 30 June 2015

VGV estimated building cost Indexation factors for Victoria for the period 1 July 2014 to 30 June 2015.

  Regional Commercial/Industrial
Metropolitan 1.00 1.01
Non-metro/Regional 1.00 1.02

Calendar year ending 31 December 2014

VGV estimated building cost Indexation factors for Victoria for the period 1 January 2014 to 31 December 2014.

  Regional Commercial/Industrial
Metropolitan 1.03 1.02
Non-metro/Regional 1.04 1.04

Financial year ending 30 June 2014

VGV estimated building cost Indexation factors for Victoria for the period 1 July 2013 to 30 June 2014.

  Regional Commercial/Industrial
Metropolitan 1.02 1.02
Non-metro/Regional 1.04 1.04

Calendar year ending 31 December 2013

VGV estimated building cost Indexation factors for Victoria for the period 1 January 2013 to 31 December 2013.

  Regional Commercial/Industrial
Metropolitan 1.02 1.00
Non-metro/Regional 1.04 1.02

Financial year ending June 2013

VGV estimated building cost Indexation factors for Victoria for the period 1 July 2012 to 30 June 2013.

  Residential Commercial/Industrial
Metropolitan 1.00 1.02
Non-metro/Regional 1.03 1.03

Calendar year ending December 2012

VGV estimated building cost Indexation factors for Victoria for the period 1 January 2012 to 31 December 2012.

  Regional Commercial/Industrial
Metropolitan 1.02 1.01
Non-metro/Regional 1.03 1.03

Financial year ending June 2012

VGV estimated building cost Indexation factors for Victoria for the period 1 July 2011 to 30 June 2012.

  Residential Commercial/Industrial
Metropolitan 1.03 1.02
Non-metro/Regional 1.05 1.03

Calendar year ending December 2011

VGV estimated building cost Indexation factors for Victoria for the period 1 January 2011 to 31 December 2011.

  Residential Commercial/Industrial
Metropolitan 1.03 1.02
Non-metro/Regional 1.03 1.03

Financial year ending June 2011

VGV estimated building cost Indexation factors for Victoria for the period 1 July 2010 to 30 June 2011.

  Residential Commercial/Industrial
Metropolitan 1.03 1.02
Non-metro/Regional 1.04 1.04

Calendar year ending December 2010

VGV estimated building cost Indexation factors for Victoria for the period 1 January 2010 to 31 December 2010.

  Residential Commercial/Industrial
Metropolitan 1.04 1.02
Non-metro/Regional 1.05 1.04

Financial year ending June 2010

VGV estimated building cost Indexation factors for Victoria for the period 1 July 2009 to 30 June 2010.

  Residential Commercial/Industrial
Metropolitan 1.03 1.01
Non-metro/Regional 1.03 1.01

Calendar year ending December 2009

VGV estimated building cost Indexation factors for Victoria for the period 1 January 2009 to 31 December 2009.

  Residential Commercial/Industrial
Metropolitan 1.02 1.02
Non-metro/Regional 1.02 1.02

Financial year ending June 2009

VGV estimated building cost Indexation factors for Victoria for the period 1 July 2008 to 30 June 2009.

  Residential Commercial/Industrial
Metropolitan 1.03 1.04
Non-metro/Regional 1.02 1.03

For clarification, agencies should also note that an indexation factor of for example 1.02 = 2% increase and not 1.02% increase.  

Reviewed 16/05/2018
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