Land values increase across Queensland despite drought

March 15, 2019

More than a million Queensland properties have been revalued for 2019, with sixteen out of eighteen local government areas recording strong increases in land value.

The 2019 Valuer-General’s report saw an overall increase in the value of urban land, with Brisbane and south-east Queensland leading the trend.

The Brisbane City Council area saw a land value increase of 6.8 per cent overall from the last valuation in 2017, while industrial land value in the same region increased 17.5 per cent.

More than 300,000 residential properties in the Brisbane area were valued, with a median rise of 7.1 per cent.

Across Brisbane, 126 suburbs saw median land value increases of up to 15 per cent, and 16 suburbs saw a land value increase of more than 15 per cent.

Thirty-seven suburbs saw no median value increase.

“There are continued signs of strength in some areas of Queensland’s property market,” Valuer-General Neil Bray said in the report.

“Generally, across Queensland, there has been increased sales activity in rural markets.”

Statewide land values increased a median of 8.2 per cent, with the Lockyer Valley reporting one of the highest increases of 15.21 per cent and Logan close behind at 11.6 per cent.

Brisbane generally saw a 6.8 per cent increase, and Longreach a 14.8 per cent decline in land value.

The Valuer-General reported inner-city suburbs saw major increases, including Auchenflower, Milton, Paddington and Woolloongabba, while Paddington reported a new residential median land value of $740,000.

Brisbane’s overall median residential property now sits at $455,000, and rural residential at $670,000.

Further out from the inner-city ring, suburbs such as Carseldine, Boondall and Rocklea saw a strong increase in value, and western suburbs such as Sinnamon Park also increased.

Outside the Brisbane region, other local government areas saw minor residential land increases including Redlands, Ipswich, Logan and Moreton Bay.

To the north, south and west of the greater Brisbane area land values at the Sunshine Coast, Noosa, Lockyer and Somerset Valleys also reported value increases.

The Sunshine Coast particularly saw increases attributed to the ongoing demand for coastal living and tourism, with mid-priced residential coastal properties the highest in demand.

Outside the city boundaries, rural residential saw minor to moderate land value increases around south-east Queensland, with a demand for agricultural land also increasing.

This was despite most of the state still being fully drought declared, with agriculture demand and beef prices strengthening.

Further west, land values in the Darling Downs saw decreases as coal seam gas activity declined.

“The town of Wandoan also previously saw significant increases in value based on a proposed coal mine development nearby,” the Valuer-General said.

“The shelving of this project has resulted in very limited interest in this market.”

However, in the Darling Downs rural land values increased “significantly” on the back of stronger beef prices and low interest rates.

The new land valuations will come into effect on June 30.