The latest report from Queensland’s Valuer-General, titled ‘Valuer-General’s 2017 Property Market Report’ has revealed that the volume of property lodgements recorded with the Registrar of Titles increased over the first half of the 2016–17 financial year with an average of 3105 daily lodgements, up 1 per cent from the previous financial year. Brisbane’s land values have increased six per cent overall since the last valuation in 2016.
Two methodologies are used to undertake statutory land valuations in Queensland—site value and unimproved value. Site value is used to value all non-rural land. It is the amount for which non-rural land could be expected to sell for, at the date of valuation, without any structural improvements on the land (e.g. houses, buildings or fences).
Unimproved value is used to value rural land. It is the amount for which rural land could be expected to sell for, at the date of valuation, without physical improvements such as houses, fences, dams, levelling or earthworks.
Trends
An increase in urban land values has generally occurred in Brisbane and its environs, the Gold Coast and Gympie. In contrast, regional Queensland generally experienced static to falling property values, in particular those communities in local government areas that have a close relationship to the resources industry such as Central Highlands, Gladstone, Mackay, Maranoa and Western Downs.
Brisbane Land Values
Land values in Brisbane increased by six per cent overall since the last valuation issued in 2016. Commercial and industrial markets were largely static, multi-unit properties recorded a slight increase in overall value, while residential and rural residential markets recorded minor increases to median values.
The Queensland Government and Brisbane City Council have a vision to develop a number of landmark projects including the Queens Wharf and the Howard Smith Wharves. Other major projects currently under consideration include the Cross River Rail and the Brisbane International Cruise Ship terminal.
The single unit residential market in Brisbane was the subject of significant competition in 2016 from local, interstate and international buyers. In this year’s annual valuation of single unit residential land, 47 suburbs’ median value did not increase, including the suburbs of Ferny Grove, Algester, Heathwood, Carseldine, Westlake, New Farm, Taigum, Kangaroo Point, Durack and Woolloongabba.
Queensland-wide land values. Source: Valuer-General, Queensland.
87 suburbs recorded minor to moderate increases of up to $50,000 in median value including the suburbs of Zillmere, Mt Gravatt, Lutwyche, Kenmore, Annerley, Windsor, Aspley, Ascot and Bulimba. A further 32 suburbs in varying locations across the city recorded an increase in the median value from $50,000 and below $75,000 including the suburbs of Camp Hill, Mansfield, Salisbury, Auchenflower, Bowen Hills and Chermside. Thirteen suburbs recorded a median increase at or above $75,000 including the suburbs of Hamilton, Chapel Hill, Seven Hills, Carindale, Holland Park and Sunnybank.
The multi-unit sector had a slight increase overall, this was driven in part by the Brisbane City Plan 2014. The city plan has continued to drive interest in apartments in some localities although concerns with demand and over-supply has curtailed activity in the second half of 2016 particularly in the CBD and CBD fringe.
Gold Coast
Gold Coast City land values have generally increased from the 2016 annual valuation. While the key contributors to the overall increase were in the residential and multi-unit sectors, increases were recorded across most market sectors. Most residential localities recorded minor increases in value, the stronger increases being in Carrara, Nerang, Palm Beach, Clear Island Waters, Bundall and Palm Beach. Areas with lower levels of increase included Pacific Pines and Helensvale with no change to minor land value increases.
Driven by demand from offshore developers, Surfers Paradise and Broadbeach recorded significant increases in multi-unit land value. Other multi-unit land values along the coastal strip and Broadwater recorded no change, to minor increases in value, with more moderate increases noted at Palm Beach. Away from the waterfront, multi-unit land values generally experienced minor increases in value
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