The Gap and Ferny Grove have shown an uplift in their land value along with other Brisbane North Western suburbs, as dwelling investment in Queensland enters a “recovery phase,” according to the latest land valuation report.
With a total of 5,648 properties surveyed, the median land value in The Gap rose to $460,000 or a 10.8 percent increase, whilst Ferny Grove’s land valuation rose by 10.3 percent from $340,000 to $375,000. Other suburbs on the northwest side of Brisbane also saw their land values rise: Mitchelton $480,000 (10.3), Gaythorne $480,000 (9.1%), Upper Kedron $370,000 (8.8%), and Keperra $395,000 (5.3%).
The new valuations, representing about 1.03 million properties, will take effect on 30 June 2019 for purposes of local government rating, state land tax, and state land rental (where applicable).
A total of 18 local government areas received new valuations this year: Brisbane, Burdekin, Cairns, Etheridge, Gympie, Ipswich, Lockyer Valley, Logan, Longreach, Moreton Bay, Noosa, North Burnett, Redland, Somerset, South Burnett, Sunshine Coast, Weipa, and Western Downs.
Site value (non-rural land) and unimproved value (rural land) methodologies, were used in undertaking the statutory land valuations, according to the Property Market Movement Report published by the State of Queensland. Both methodologies refer to the expected sale value of the land, at the date of valuation, excluding improvements like houses, buildings, or fences. Unimproved value, however, also excludes improvements to the land such as earthworks or levelling.
“While approvals and construction have declined, the substantial amount of work remaining in the pipeline indicates dwelling investment is headed for a ‘soft landing’ compared with previous housing cycles,” Queensland’s Valuer-General Neil Bray said.
Of the 18 local government areas that have been valued, 16 recorded an overall increase ranging between 4.9 (South Burnett) and 42.5 percent (Etheridge).
There were nine LGAs with increases of 0-10 percent, five areas with increases of 10-20 percent, and two areas with more than 20 percent increases. Burdekin and Longreach, on the other hand, recorded overall decreases of 2.9 percent and 14.8 percent, respectively.
Majority of suburbs across Brisbane have recorded increase in residential land values, with most showing increases between five and 15 percent. Residential sector is the largest market sector in Brisbane, about 304,000 valuation.
The median residential value has risen 7.1 percent as the overall median value increased to $455,000 from $425,000.
Thirty-seven residential suburbs remained unchanged, whilst 126 increased by up to 15 percent and 16 suburbs increased by more than 15 percent. Inner-city suburbs Woolloongabba (26.1%), Auchenflower (19.6%), Paddington (19.4%), and Milton (19.2%) have the largest median valuation increases.
The new valuations will become effective 30 June, however, landowners who have additional or new evidence to justify the need to alter the new valuations should provide such information through the online objections process via www.qld.gov.au/landvaluation or at the address shown at the top of their valuation notice, by 7 May 2019.
