![The property sits on three lots, with a total land area of 1565 square metres. Picture supplied. The property sits on three lots, with a total land area of 1565 square metres. Picture supplied.](/images/transform/v1/crop/frm/230358521/f7db4115-b0d7-4dfe-81fc-96ce8fde4c57.jpg/r0_0_3000_2000_w1200_h678_fmax.jpg)
A Ballarat landmark valued in the millions of dollars is on sale, as reforms to commercial and industrial property taxes loom.
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But real estate agents say it's a buyer's market, particularly in Ballarat's CBD, despite concerns owners could be "paying a lot more" after July 1 in tax.
"It is no longer a seller's market"
![The commercial property in Ballarat Central is on market again after 66 years. Picture by Adam Trafford. The commercial property in Ballarat Central is on market again after 66 years. Picture by Adam Trafford.](/images/transform/v1/crop/frm/230358521/72e0394f-71f7-4e55-883a-cdbde421fb1f.jpg/r0_0_5971_3981_w1200_h678_fmax.jpg)
Colliers International real estate agent, senior executive Charles Kennedy, said the market had slowed down due to interest rate rises and people's discretionary spending had gone down.
"It's a buyer's market. It is no longer a seller's market," he said. "People are pickier about what they buy and how much they'll pay."
"There's currently a 50 per cent stamp duty exemption on commercial property sales in regional areas of Victoria. And that has had a big impact on purchase decisions.''
What are the tax reforms?
![How tax reforms could affect Ballarat commercial sales How tax reforms could affect Ballarat commercial sales](/images/transform/v1/crop/frm/230358521/879b02c7-4387-4c10-8097-44efdf3cddb3.png/r299_0_1617_1079_w1200_h678_fmax.jpg)
The Victorian government will introduce a commercial and industrial property tax on July 1 to transition away from stamp duty.
According to the state government, commercial and industrial properties will transition to the new system once they are sold after July 1, with a final stamp duty and the annual property tax to be payable from 10 years after the transaction. The new tax will be one per cent of the property's site value.
The reform will also provide an option of accessing a government-facilities transition loan issued by the Treasury Corporation of Victoria to finance the final upfront stamp duty liability on purchases.
Mr Kennedy said stamp duty reductions or discounts had certainly been a valuable element in sales, which could stimulate interest among clients in purchasing commercial properties.
"It is too early yet to really determine whether or not that's going to be significant factor to purchasing decisions," Mr Kennedy said.
Breaking down the complexity
Focusing on real estate agents, certified practising accountant Jane Jens said the reform didn't remove the stamp duty in commercial properties in the short term.
![Jane Jens is a certified practising accountant specialising in real estate. File picture by Adam Trafford. Jane Jens is a certified practising accountant specialising in real estate. File picture by Adam Trafford.](/images/transform/v1/crop/frm/230358521/1b985dd3-480f-49e7-a20b-15745802b9bd.jpg/r2681_718_3504_1383_w1200_h678_fmax.jpg)
"The government is selling it as they will remove the burden of paying the stamp duty up front if you purchase commercial or industrial property after July 1, 2024," she said.
"The purchaser will then have an option to pay stamp duty via self-funding or government-facilitated loan program on which the government will charge interest."
Ms Jens said every year, for the next 10 years, a business would then have a principal and interest repayment on this loan on top of their annual land tax payments, and after 10 years would start paying a tax of 1% of the taxable value of the land.
"If a business is looking to invest in commercial or industrial property long term, then they should consider making the purchase before July 1, 2024," she said.
A Victorian Government spokesperson said in a statement "we are undertaking a landmark reform to transition away from stamp duty to an annual property tax for commercial and industrial properties."
"This landmark reform will support businesses investing, expanding and employing more workers."
Worth more than $2.5 million
Originally built in the 1800s, the property on 1-5 Eyre Street and 206-210 Armstrong Street South sits on three lots, with a total land area of 1565 square metres. The Elliott family has owned the property for more than 40 years.
Des Elliott Machinery Sales' current owner Danny Elliott said his father purchased the first lot and opened the business in 1958.
Mr Elliott said the family bought (the blocks) in dribs and drabs.
Mr Kennedy, from Colliers', said it is an iconic property in a high-visibility location.
![Charles Kennedy is the senior executive of Colliers. Picture by Lachlan Bence. Charles Kennedy is the senior executive of Colliers. Picture by Lachlan Bence.](/images/transform/v1/crop/frm/230358521/e87404bf-7d5b-431e-8ce4-c475dd8c813c.jpg/r0_0_5304_3784_w1200_h678_fmax.jpg)
"The underlying land value of commercial one-zoned property in the CBD sits between $1500 to $2300 per square meter - as a method of valuing the 1500 square meters." Mr Kennedy said.
He said the price would range from $2.5 million to $3.5 million since it was several buildings across the block.
Des Elliot is still open but will close once the property is sold, according to Colliers.
Mr Elliot told The Courier he would plan to run the business from home.