VGV provides advice to government on valuation issues and sensitive property transactions for sale, purchase, lease and compulsory acquisition.
VGV also values government assets to enable agencies to complete their financial reporting requirements as set out under the Financial Management Act 1994.
VGV has established and manages a Valuation Services Panel (VSP) that provides valuation advice to VGV for government agencies involved in property transactions.
Valuation Services Panel
The VSP provides valuation services for property transactions and other property-related purposes. It also includes the services of professionals in allied disciplines to provide advice such as independent town planning, engineering, business valuations and quantity surveying.
Victorian Government policy states that VGV must receive all government agencies' valuation requests.
The following benchmarks apply:
If the market value of the land or the combined value of two or more properties/parcels/titles is:
- Less than $750,000 - it is mandatory to obtain one valuation. Valuer-General Victoria must make the valuation.
- $750,000 or greater- it is mandatory to obtain two valuations. One of the valuations must be obtained from VGV. A member from the VSP must make the second valuation. VGV will organise both valuations. One will be certified by VGV and one will go directly to the agency.
A second valuation is not mandatory where the transaction involves another State Government agency.
The Victorian Government Land Monitor will become involved if the property's value is $750,000 (excl. GST) or more.
Requesting a valuation
To request a valuation, government agencies or departments must complete the request form.
Post: Valuer-General Victoria, GPO Box 527, Melbourne, Victoria 3001.
Management of government valuations
Valuer-General Victoria (VGV) manages in-house and outsourced valuations in accordance with the ISO 9001:2015 Quality Management System.
All VGV valuation processes are subject to annual external audits. In addition, the VGV Panel of Valuers is audited annually. Members of the VGV Panel, which is managed by VGV, provide valuations to VGV for government purposes.
Where agreement cannot be reached on two or more valuations that are made for the purchase, sale, lease or compulsory acquisition of a property and where one valuation is certified, VGV will facilitate a dispute resolution conference.
In addition to the Victorian Government Land Transactions Policy and Guidelines and to ensure the government's probity is protected when it is undertaking valuations, a set of sensitivity drivers has been developed to enable an accurate assessment of:
- when the Valuer-General provides a valuation in-house and when VGV will instruct a panel member to provide the valuation
- whether or not there is a need for an agency to request a certified valuation.
|High Sensitivity||Certified||VGV performs valuation in-house or project manages an outsourced valuation through the VGV panel of valuers|
|Medium Sensitivity||Certified||VGV performs valuation in-house or project manages an outsourced valuation through the VGV panel of valuers|
|Low Sensitivity/Low Value||Certified||VGV performs valuation in-house or project manages an outsourced valuation through the VGV panel of valuers|
Analysis of past transactions indicates that VGV certifies approximately 4000 valuation requests per annum with about 80 per cent of those being completed by the VGV Valuation Services Panel.
The 20 per cent to be completed in-house would be classified in the 'High Sensitivity' category. A small percentage of medium sensitivity valuations are provided in-house as part of the VGV Quality Assurance procedures to ensure an appropriate level of skill is available to enable professional standards for certification to be maintained.
VGV can also accommodate agencies with rental and financial reporting valuation requests (Asset Valuations). The same high quality management processes are available for these requests as are those established for sale, purchase, lease and compulsory acquisition of land.
Government departments and agencies are increasingly seeking assistance from VGV with the project management of valuations and paying a fee for service.
Agencies wishing to procure valuation services should read that document in conjunction with Victorian Government Land Transactions Policy and Guidelines April 2016.
Government departments and agencies wishing to instruct VGV to provide valuation/rental valuations should complete either the Request for Valuation form or Request for Rental Valuation form. The forms can be found at the top of this page under the heading requesting a valuation.
Financial reporting valuations for government
A guidance note on fair value measurement of non-financial physical assets has been prepared for valuers and others in the state government's financial reporting sector.
It has been prepared in conjunction with the Victorian Auditor General's Office (VAGO) and the Department of Treasury and Finance (DTF).
Under the provisions of the Land Acquisition and Compensation Act 1986 land required for a public purpose can be acquired/resumed by government departments and agencies.
This can be done either compulsorily or by negotiation. The legislation sets out the process to be followed and how compensation is to be determined.
Valuations are needed to assess the amount of compensation to be paid. Valuer-General Victoria (VGV) provides valuations for these acquisitions in accordance with Management of Government Valuations processes.
Compensation can also be paid under the provisions of the Planning and Environment Act 1987 This occurs where 'loss' is assessed following the sale of a property affected by an acquisition overlay or, where a planning application is refused on the grounds that the property is required for a public purpose.
VGV also assesses compensation in these situations.
Properties are acquired, either in total or in part, by the state for purposes such as new roads/freeways, railways, road widening/deviations, parks, reservoirs, sewerage works, drainage reserves etc.
When the land being assessed has complications relating to such things as further subdivision or redevelopment potential or simply difficulties of use following acquisition, VGV often has to use the services of other professionals for their expert advice. These professionals include town planners, engineers, architects, quantity surveyors, land surveyors and farm consultants.
The compulsory nature of the acquisition and the problems that arise from the acquisition process means that there are often conflicting opinions about the values and even the approaches. VGV regularly holds conferences with valuers from both sides to facilitate dispute resolution.
As compulsory acquisition is a litigious area, valuers must also consider judicial precedents when deciding on valuation methodology, rationale and theory. These court precedents have helped shape the way the legislation has been written/interpreted and the outcomes of disputes about acquisition.
Property valuations for the State Government of Victoria
Valuations for government property transactions must be correct and seen to be correct.
To ensure financial responsibility by government, it is imperative that valuations made for government are independent.
Government agencies responsible for conducting real estate transactions must comply with the Victorian Government Land Transactions Policy & Guidelines.
Government valuation agencies
For location and contact details, visit contact us.
Page last updated: 09/06/20