A parliamentary question regarding the discrepancy in offered purchase prices for houses in Wittenoom compared to previous offers and current market values. The Minister's answer clarifies the valuation method and adjustments made for inflation.

AnsweredQoN 1966Legislative Council
Asked
4 May 2004
Portfolio
State Development

QuestionView source ↗

With regard to Offers of Purchase for housing in Wittenoom -
(1) Can the Minister justify why amounts of $22,500 are being offered for houses and associated land in the Wittenoom area, when the Deputy Premier, Hendy Cowan stated on the November 2 1994 that up to $34,000 would be offered for houses and associated land, along with up to $4,000 for moving costs?
(2) Given that in mid 2002, payments of up to $32,000 were paid to former residents for houses and associated land, can the Minister identify why the amounts now being offered are considerably lower?
(3) Given that land and housing prices have significantly risen during this period across the State can the Minister identify why figures significantly lower than the benchmark established by the former Deputy Premier are now being offered and why the compensation prices do not reflect current median house prices in Western Australia?

AnswerView source ↗

Answered
1 June 2004
Responded by
Parliamentary Secretary representing the Minister for State Development
Response time
28 days
(1) Under the current property purchase program, Wittenoom permanent residents are offered up to $35,550 for their residence. The price is determined by the condition of the house relative to other Wittenoom properties as assessed by a licenced valuer. This method of valuation has been adopted as there is no actual market for these properties as a result of the Government policy established in 1994. In addition, residents are offered $4,740 for relocation expenses and $356 per adult for travel expenses. Requests by property owners residing outside Wittenoom to sell their Wittenoom property are referred to the Minister on a case by case basis. The price is determined in the same manner as outlined above, however, the maximum amount offered is $30,000. Non Wittenoom residents are not eligible for relocation or travel expenses. (2) The amount offered for Wittenoom properties was changed in 2002 when the former benchmark price was increased by the appropriate CPI value to reflect the effect of inflation since 1994. Variation in payments may be due to a number of factors such as whether a property is the permanent residence and the condition of the house. (3) Amounts offered are above the benchmark established by the former Deputy Premier and are not intended to reflect current median house prices in Western Australia.
Requests by property owners residing outside Wittenoom to sell their Wittenoom property are referred to the Minister on a case by case basis. The price is determined in the same manner as outlined above, however, the maximum amount offered is $30,000. Non Wittenoom residents are not eligible for relocation or travel expenses. (2) The amount offered for Wittenoom properties was changed in 2002 when the former benchmark price was increased by the appropriate CPI value to reflect the effect of inflation since 1994. Variation in payments may be due to a number of factors such as whether a property is the permanent residence and the condition of the house. (3) Amounts offered are above the benchmark established by the former Deputy Premier and are not intended to reflect current median house prices in Western Australia.
(2) The amount offered for Wittenoom properties was changed in 2002 when the former benchmark price was increased by the appropriate CPI value to reflect the effect of inflation since 1994. Variation in payments may be due to a number of factors such as whether a property is the permanent residence and the condition of the house. (3) Amounts offered are above the benchmark established by the former Deputy Premier and are not intended to reflect current median house prices in Western Australia.
(3) Amounts offered are above the benchmark established by the former Deputy Premier and are not intended to reflect current median house prices in Western Australia.

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