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Valuer-General’s 2018 Property Market Movement Report State Valuation Service

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Page 1: Valuer-General's 2018 Property Market Movement Report · amount for which rural land could be expected to sell for, at the date of valuation, without physical improvements such as

Valuer-General’s 2018 Property Market Movement Report

State Valuation Service

Page 2: Valuer-General's 2018 Property Market Movement Report · amount for which rural land could be expected to sell for, at the date of valuation, without physical improvements such as

Valuer-General’s 2018 Property Market Movement Report ii

© State of Queensland, 2018.

The Queensland Government supports and encourages the dissemination and exchange of its information. The copyright in this publication is licensed under a Creative Commons Attribution 3.0 Australia (CC BY) license.

Under this license you are free, without having to seek our permission, to use this publication in accordance with the license terms.

You must keep intact the copyright notice and attribute the State of Queensland as the source of the publication. Note: Some content in this publication may have different license terms as indicated.

For more information on this license, visit http://creativecommons.org/licenses/by/3.0/au/deed.en.

CS7909 03/18

Cover photos

Gold Coast City. (Photo courtesy of Shutterstock)

Point Vernon in Hervey Bay, Fraser Coast Regional Council. (Photo courtesy of Shutterstock)

Emerald in Central Highlands Regional Council. (Photo courtesy of Central Highlands Development Corporation)

Cattle (Photo courtesy of S Barlow)

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Valuer-General’s 2018 Property Market Movement Report iii

Contents

Valuer-General’s foreword 1

Introduction 2

Property market movement 2

Overall market trends 3

Gold Coast 3

Greater South East 4

Wide Bay–Burnett 5

Darling Downs 5

Maranoa 6

Central Queensland 7

North Queensland 8

Western Queensland 9

Rural 10

Figures

Figure 1 Local government areas and the 2018 annual valuation program iv

Figure 2 Property land use by region, 2018 2

Figure 3 Overall percentage movement in total value since the previous annual 11 valuation for the whole state and all local government areas

Figure 4 Queensland drought situation as at 27 September 2017 14

Figure 5 Queensland drought situation as at 11 January 2018 15

Tables

Table 1 New median value and percentage movement in median value for 12 residential and rural residential land since the previous annual valuation in local government areas included in the 2018 annual valuation

Table 2 New total value and percentage movement in total value for commercial, 13 industrial, multi-unit and primary production land since the previous annual valuation in local government areas included in the 2018 annual valuation

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Valuer-General’s 2018 Property Market Movement Report iv

Figure 1 Local government areas and the 2018 annual valuation program

COOK SHIRE

BULLOO SHIRE

DIAMANTINA SHIRE

ISAAC REGIONAL

QUILPIE SHIRE

BOULIA SHIRE

BARCOO SHIRE

WINTON SHIRE

PAROO SHIRE

MAREEBA SHIRE

BURKE SHIRE

TORRES SHIRE

MARANOA REGIONAL

MOUNT ISA CITY

MURWEH SHIRE

FLINDERS SHIRE

LIVINGSTONE SHIRE

ETHERIDGE SHIRE

BALONNE SHIRE

MACKAY REGIONAL

WHITSUNDAYREGIONAL

BURDEKIN SHIRE

TOWNSVILLE CITY

CARPENTARIA SHIRE

CLONCURRY SHIRE

MCKINLAY SHIRE

BARCALDINE REGIONAL

CHARTERS TOWERS

REGIONAL

BANANA SHIRE

CENTRAL HIGHLANDS REGIONAL

LONGREACH REGIONAL

CROYDON SHIRE

GLADSTONE REGIONAL

RICHMOND SHIRE

WESTERN DOWNS

REGIONAL

BLACKALL-TAMBO REGIONAL

GOONDIWINDI REGIONAL

NORTH BURNETT

REGIONAL

TOOWOOMBA REGIONAL

BUNDABERG REGIONAL

HINCHINBROOK SHIRE

CASSOWARY COAST REGIONALTABLELANDS

REGIONAL

DOUGLAS SHIRE

CAIRNS REGIONAL

SOUTH BURNETT REGIONAL

ROCKHAMPTON REGIONAL

SOUTHERN DOWNS

REGIONAL

WEIPA TOWN GYMPIE REGIONAL

FRASER COAST REGIONAL

SOMERSET REGIONAL

SCENIC RIM REGIONAL

IPSWICH CITY LOGAN

CITY

BRISBANE CITYLOCKYER VALLEY

REGIONAL

Included in ProgramNot Valued (40)

Valued (22)

2018 Annual Valuation Program

Inset

Inset

CS77

98 0

1/18

REDLAND CITY

GOLDCOAST CITY

MORETON BAY REGIONAL

NOOSA SHIRE

SUNSHINE COAST REGIONAL

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Valuer-General’s 2018 Property Market Movement Report 1

Valuer-General’s forewordI am pleased to release this year’s property market movement report, ahead of the issue of the 2018 annual statutory land valuations on Wednesday, 7 March 2018.

Following a statewide market survey and consultation with local government and industry groups, 22 local government areas have been valued in accordance with the Land Valuation Act 2010.

A market survey report prepared for each local government area details the sales of land in the area since the last valuation was made and the probable impact of those sales on the value of land in an area. In addition, valuers also consider factors that impact on the value of the land such as the state of the economy, commodity prices and population trends.

The 22 local government areas receiving new valuations this year are: Banana, Barcoo, Boulia, Bulloo, Central Highlands, Charters Towers, Diamantina, Douglas, Fraser Coast, Gladstone, Gold Coast, Goondiwindi, Hinchinbrook, Isaac, Maranoa, Murweh, Noosa, Paroo, Quilpie, Scenic Rim, Sunshine Coast and Toowoomba.

The rateable local government areas being valued this year represent approximately 41 per cent of the total land area of Queensland or 29 per cent of the properties on the state valuation roll.

The new valuations will take effect on 30 June 2018 for local government rating, state land tax and state land rental purposes (where applicable).

This report summarises the comprehensive analysis of all property markets within the 2018 annual valuation program for Queensland by a team of regionally-based registered valuers in the State Valuation Service of the Department of Natural Resources, Mines and Energy.

There are continued signs of strength in some areas of Queensland’s property market. Generally, across Queensland there has been increased sales activity in rural markets. This has resulted in an uplift in land values within the majority of grazing, horticultural, small crop and dryland farming industries.

Continued strengthened cattle prices within the beef industry and continued low interest rates are driving this confidence, even though the majority of the state remains drought declared.

Looking at other economic indicators, Queensland Treasury advise ‘dwelling investment increased by a further 2.4 per cent in 2016–17. However, dwelling approvals are now well below their peak in early 2016, driven by significant falls in approvals for medium-to-high density dwellings.’1

‘Conditions facing regionally important industries, including in the resource sector and tourism, have continued to strengthen. For example, coal prices and associated import demand from China have held up, better winter rainfall has eased drought conditions in some areas and tourism numbers continue to improve.’2

‘A global trade recovery, strengthening commodity prices and increased export volumes boosting Queensland export earnings. The value of Queensland goods exports increased $22.3 billion to be $71.4 billion in the year to October 2017, while education and tourism exports continue to grow, driven by demand from Asia.’3

Coinciding with the issue of annual valuations on 7 March we are introducing a new online search feature for landowners to find their land value information.

The online search displays annual valuation information from the existing online valuation roll, residential market tables and mapping products into one easy-to-use online search accessible on desktop and mobile devices. The search tool also displays the movement in the residential median values of major residential localities and local government area as a whole.

Queensland Globe continues to provide landowners with access to more detailed valuation information. Our online resources, Queensland Globe and rural sales map can be viewed at www.qld.gov.au/landvaluation and can help you better understand your land valuation and local property market.

With many Queensland landowners now electing to receive their notices electronically, I encourage all landowners to have their future valuation notices and other valuation information sent to them by email by visiting www.qld.gov.au/landvaluation and changing their contact details.

I hope you find this year’s property market movement report informative.

Neil Bray Valuer-General State Valuation Service

1 Queensland Budget 2017–18: Mid year fiscal and economic review, p8, Queensland Government 2 ibid. p11 3 ibid. p3

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Valuer-General’s 2018 Property Market Movement Report 2

NORTH

CENTRAL

SOUTH WEST

NORTHCOAST

Single unit residential Rural residential Multi-unit residential Commercial IndustrialPrimary production Other

SEEINSET

DNRME offices with SVS staff

Local governmentareas valued

TOOWOOMBA

ROCKHAMPTON

BUNDABERG

MARYBOROUGH

EMERALD

MACKAY

ROMA

TOWNSVILLE

CAIRNS

WARWICK

BRISBANE

INSETNAMBOUR

IPSWICH

GOLD COAST

IntroductionTwo 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). Site value includes site improvements made to the land such as earthworks (e.g. levelling, filling, or drainage works). Excavations and drainage associated with a building are not included in site value.

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. If your land has been valued on an unimproved basis, it is either zoned rural (or equivalent) or designated rural for statutory valuation purposes.

Property market movementThe volume of property lodgements recorded with the Registrar of Titles decreased over the first half of the 2017–18 financial year with an average of 2926 daily lodgements, down 6 per cent from the previous financial year.

Proper ty value changes, both up and down, can be attributed to a number of factors:

• supply and demand within the market place

• consumer confidence

• availability of finance

• local, national and global economic factors

• the effects of extreme weather events.

Table 1 (page 12) shows the new median value and percentage movement for residential and rural residential land in the local government area since the previous valuation. Table 2 (page 13) shows new total value and percentage movement in total value for each land use category since the last annual valuation was issued. Figure 3 (page 11) shows the overall percentage movement in total value since the previous valuation for each local government area and the whole state.

This year’s overall percentage movements in land values for the 2018 annual valuation are summarised below:

• Nineteen local government areas recorded an overall increase of between 1.6 per cent (Charters Towers) and 41.9 per cent (Maranoa).

• Of the nineteen local government areas that increased, three increased by 0–5 per cent, four increased 5–10 per cent and twelve recorded increases of more than 10 per cent.

• Three local government areas recorded an overall decrease in value between 5.1 per cent (Paroo) and 9.2 per cent (Hinchinbrook).

Figure 2 Property land use by region, 2018

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Valuer-General’s 2018 Property Market Movement Report 3

Overall market trends An increase in urban land values has generally occurred in the Gold Coast, Scenic Rim, Toowoomba, Sunshine Coast, Noosa and Douglas local government areas. In contrast, some regional Queensland local government areas experienced generally static to falling property values, in particular those communities whose economies are closely linked to activity in the resources sector, such as Gladstone and Isaac regional councils.

The market is still being influenced by:

• prevailing economic uncertainty and weak employment growth in some regional centres

• declining business investment reflecting the state of the resources sector

• drought – although better winter rainfall in some areas saw a recovery in crop production and herd rebuilding.

However, these drivers are offset by:

• strong housing construction and growth in dwelling investment

• continued growth in international tourism and education due to the lower Australian dollar

• low borrowing costs and improving rental yields

• investment opportunities being taken up by interstate and overseas buyers.

The mining and gas industries continue to influence the property market as the gas sector moves from an exploration and construction phase towards a production phase, while the mining industry is impacted by volatile resource prices. The fluctuating activity within the sector is still impacting on centres including Gladstone, and townships within the Isaac and Banana local government areas.

Increased confidence within rural markets has led to moderate increases across the state with some minor to moderate increases in Greater South East Queensland. Continued high commodity prices within the beef industry and continued low interest rates are driving this confidence, even though the majority of the State remains drought declared.

Despite a drop in the sugar price and an increase in the Australian dollar the demand for sugar cane land is still evident, with the market still generally supporting static to slightly increased land values.

Gold CoastGold Coast City land values have generally increased from the 2017 annual valuation. While the key contributor to the overall increase was in the residential sector, increases have been recorded across most market sectors. The market movement is consistent with general economic indicators such as improving visitor numbers1, development and infrastructure spending in the lead up to the 2018 Gold Coast Commonwealth Games2.

Most residential localities recorded minor increases in value, the stronger increases being in coastal and near coastal locations such as Mermaid Beach, Burleigh Waters, Burleigh Heads, Elanora, Currumbin Waters and Tugun. Residential land values in Coombabah and Runaway Bay have recorded only slight increases.

Gold Coast multi-unit development site values increased by a minor amount overall depending on location. The diversity in values is reflective of the demand for development sites in particular locations and markets. Southern coastal localities between Mermaid Beach and Coolangatta generally increased by minor to moderate amounts. Land values in central coastal and broadwater locations, such as in Southport, Surfers Paradise, Broadbeach and Labrador, generally increased by only slight amounts, while values in non-coastal, lower density locations such as in Robina showed slight to minor increases.

The market for Gold Coast commercial property has been characterised by improving yields and reducing vacancy rates. Commercial land value increased by a minor amount overall varying by location. The overall movement was influenced by significant increases in southern coastal localities such as Palm Beach and Tugun. Land values in the established commercial locations such as Southport and Bundall increased slightly, while emerging locations such as Robina and Varsity Lakes experienced only minor increases.

Gold Coast City. (Photo courtesy of Shutterstock)

1 Travel by Australians: Results of the national visitor survey for year ending September 2017 2 Andrew Potts, Gold Coast Bulletin, June 11 2017

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Valuer-General’s 2018 Property Market Movement Report 4

Steady demand for industrial sites across the Gold Coast has resulted in a moderate overall increase in industrial land values. Values in all major industrial locations, such as in Yatala, Molendinar and Burleigh Heads, increased at relatively consistent rates. More significant increases occurred in the Coomera Marine precinct. Nerang, Carrara and Currumbin industrial values increased by only minor amounts.

Rural residential home sites recorded a minor increase in value overall, with homesite lots closer to denser residential areas in Helensvale and Nerang reporting marginally greater increases.

Gold Coast primary production land values, represented by the horticulture, cane farming and beef cattle grazing industries have generally remained unchanged.

Greater South EastGreater South East Queensland encompasses the valley areas west of Greater Brisbane, coastal areas north to Noosa, and areas inland to Gympie Regional Council.

These local government areas were valued in 2018:

• Scenic Rim Regional Council

• Noosa Shire Council

• Sunshine Coast Regional Council

Scenic Rim Regional Council area was last valued in 2015. Values in the area have been static until recently when demand spreading from surrounding areas has lifted value. Overall the increase in value was minor, however there has been variability with significant increases in some markets and locations.

Residential land values in the towns and villages increased moderately overall with significant increases in Tamborine Mountain and Canungra. The rural homesite market, which is the main market driver in the area, also increased moderately overall. Diverse movement in this market reflected local sales evidence and demand resulting in a range of increases from relatively minor in Tamborine to significant on Tamborine Mountain. Kooralbyn, Canungra, Peak Crossing, Beaudesert and Aratula rural residential values have increased moderately.

The impact of emerging markets and infrastructure resulted in a range of movements for commercial and industrial land in Bromelton and Aratula that resulted in a moderate increase for each location. Otherwise the majority of commercial and industrial land value was static.

Farming and grazing businesses in the area are a significant component of the local economy. Farm and grazing land values increased by a minor amount overall, with more moderate increase recorded in locations such as Peak Crossing, Mount Walker and Beechmont.

Noosa and Sunshine Coast local government areas were last valued in 2016 and generally most market sectors and localities have increased in value since that time.

The Sunshine Coast region has experienced minor to moderate growth in residential land values driven by a number of factors including the significant infrastructure construction, strong tourism activity and continued demand for coastal living. Demand typically centres on mid-priced coastal property as well as the smaller towns along the North Coast railway line such as Yandina, Nambour and Landsborough that provide an affordable option for buyers. Prestige property values have also improved with minor increases in beachfront lands as well as for canal frontage properties in Noosa and Pelican Waters.

Improving multiple unit building activity and demand is evident on the Sunshine Coast and has resulted in minor growth in mulit-unit land values.

Commercial land values are generally steady with some minor increases across the Sunshine Coast region, however there is growth in most industrial values underpinned by the strengthening building and development sector.

Rural residential home site values generally mirrored the changes in the urban areas, with minor increases recorded in value in Sunshine Coast and Noosa.

Farming activities such as cattle, small crops and tree crops are significant enterprises in South East Queensland. Rural land values in Sunshine Coast have had moderate increases with market activity reflecting the demand for hinterland properties.

Sunshine Beach, Noosa Shire Council. (Photo courtesy of Shutterstock)

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Valuer-General’s 2018 Property Market Movement Report 5

Wide Bay–BurnettWide Bay–Burnett encompasses the region from Maryborough north to Bundaberg, and west to Kingaroy and Monto. Within the region Fraser Coast Regional Council was valued in 2018.

Fraser Coast was last valued in 2016 and since that time market conditions have improved in some areas with land values rising in Hervey Bay and some coastal areas.

Hervey Bay is experiencing some activity in the residential sector, with most areas showing a slight to minor rise in values predominately in the lower to middle price range. The older established areas of Maryborough remained static, while values in the hinterland towns and villages remained generally unchanged.

Multi-unit land values remained static in Maryborough, however values have risen in some areas within Hervey Bay in line with the rising residential land values.

Industrial, retail and other commercial activity has been largely subdued across the local government area as a reflection of local market conditions and as a result, land values are mostly unchanged.

Rural residential values remained generally static with demand typically focused on smaller sites around the major centres.

Grazing, cane growing, and small and tree cropping are significant land uses in the Fraser Coast area, however land values were generally static on the back of limited sales evidence in the farming sector.

Darling DownsThe Darling Downs is a farming region on the western slopes of the Great Dividing Range in southern Queensland. The Downs are to the west of the Greater South East and is generally applied to an area comprising Southern Downs, Western Downs, Toowoomba and Goondiwindi regional council local government areas.

These local government areas in the region were valued in 2018:

• Toowoomba Regional Council

• Goondiwindi Regional Council

The economy of Toowoomba and surrounds continues to be positive due to a number of completed, ongoing and proposed infrastructure including the Brisbane West Wellcamp Airport, Grand Central shopping centre development, the Second Range Crossing, Charlton Industrial Estate development, the proposed Inland Rail, and the proposed Toowoomba railway precinct and parkland development.

These projects have created confidence within Toowoomba City. This is further supported by the effects of the continued strengthening beef commodity prices, low interest rates and the general demand for rural land across the Darling Downs, resulting in moderate increases in rural land values.

Toowoomba Regional Council was last revalued in 2016. Since that time there has been minor to moderate growth within the residential and rural residential markets of Toowoomba and surrounding towns. The towns of Millmerran, Pittsworth, Oakey and Yarraman are the exception where the markets remained static, and minor reductions have been made in Clifton, Nobby, Cooyar and Greenmount.

The multi-unit market in Toowoomba has now plateaued, following a sustained period of significant development prior to the 2016 annual valuation.

Generally, the industrial market across Toowoomba remained static, except for the Charlton Industrial Estate which has experienced significant increases in value, related to the significant infrastructure projects in the region.

There is considerable optimism within the commercial market of Toowoomba City. The market for quality commercial investment properties has been robust.

Point Vernon in Hervey Bay, Fraser Coast Regional Council. (Photo courtesy of Shutterstock)

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Valuer-General’s 2018 Property Market Movement Report 6

There is demand for smaller commercial premises or sites suitable for commercial use on a scale suitable for owner occupiers. There has been an increase in leasing activity within the CBD and fringe for food and entertainment venues including cafes, restaurants and bars. The increased retail floor area brought on line by the Grand Central shopping centre redevelopment appears to have increased overall vacancy levels within this locality. Demand for office space within the CBD fringe also continues with the conversion of residential dwellings in to professional offices.

Redevelopment is occurring within the city fringe commercial areas with the recently completed Bunnings store on the former foundry site at the corner of Ruthven and Bridge streets. Inner city development continued with a number of new developments and restaurants being constructed, coupled with more apartments.

Sales within this market support an overall minor increase in the level of land value, with varying increases in the fringe commercial and outlying suburban commercial areas.

Since the last revaluation of Goondiwindi Regional Council in 2017, the urban components remained generally static overall, except for significant increases in the industrial market and moderate to significant increases for rural residential properties in Goondiwindi, including the riverfront properties along the McIntyre River.

The continued effects of the strengthened beef commodity prices and low interest rates has seen the general demand for rural land continue from the 2017 revaluation across the Goondiwindi Regional Council local government area, resulting in continued significant increases in value.

MaranoaThe Maranoa region is located in south west Queensland approximately 480 km west of Brisbane and adjoins the Darling Downs.

The town of Roma, is the dominant urban centre and serves as the region’s primary hub for commerce, education, health, transport, government, retail and financial services.

The urban markets throughout Maranoa Regional Council have stabilised, since the gas industry has moved from infrastructure development to the production phase. Within the last revaluation of 2017, all urban land values were significantly reduced within the town of Roma.

Rural land values have continued to rise significantly, following the increases contained in the last revaluation in 2017. These increases are a result of the continued strengthening of the beef commodity prices and low interest rates. Better quality and more sought after lands have reflected larger increases in property values.

Aerial view of Toowoomba (Photo courtesy of Dan Proud Photography)

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Valuer-General’s 2018 Property Market Movement Report 7

Central QueenslandCentral Queensland encompasses Rockhampton, Gladstone and Mackay and extends south to Miriam Vale, north to Bowen and west to the Queensland–Northern Territory border.

These Central Queensland local government areas were valued in the 2018 annual valuation:

• Banana Shire Council

• Central Highlands Regional Council

• Gladstone Regional Council

• Isaac Regional Council

Over the last year, Central Queensland experienced a mixed property market movement. Generally, urban property markets softened or remained static, and rural property markets have remained static or increased.

Since the early 2000’s, regional urban markets have been influenced by the region’s resources industry. During 2017, the region started to recover from the previous economic downturn, caused, in part by the reduced viability of the Bowen Basin coal industry.

Reductions in coal prices since 2013 saw several uneconomic mines closed during 2015–16, remaining operational mines rationalised, and infrastructure development projects postponed or abandoned. In mid-to-late 2016 and throughout 2017, an increase in the spot prices for coal saw stabilising in some markets and renewed interest in new coal projects.

Support industries were also impacted by conditions in the mining sector. The biggest impact occurring in the mining and resource-based towns which traditionally accommodated workers in houses rather than in temporary accommodation.

The effect on the property market was that demand for urban lands remained soft in 2017 in most urban centres. However, with continued strong coal prices, we are now seeing stabilisation in these urban markets.

The worst affected property markets are the lower-valued properties in improved residential property markets and the residential rental markets. Reliable evidence of a decline in land values has taken time to filter through, but there is now sufficient market evidence to indicate a downward movement.

The level of reduction varies from town to town, the extent of reductions relates to a combination of the town’s reliance on the mining industry, and the date at which the town’s associated mines rationalised their workforce.

Although there was considerable variation between mining towns, the trend throughout the local government areas of Gladstone, Isaac and Banana was of moderate value reductions for most urban land types. Urban lands were more stable in Central Highlands Regional Council, after some significant reductions in previous valuation periods.

While property values have reduced in the mining towns such as Dysart, Moranbah, Clermont, Moura and Theodore, the residential rental market in most towns has started to firm at lower and more sustainable levels.

Gladstone property values also reduced in 2017 with small lot residential and multi-unit values reduced in many areas. This ongoing easing in the residential market demand in 2017 was mainly due to continued uncertainty in the LNG sector and excess supply created during the LNG infrastructure construction phase. There were some flow-on reductions in property values in Gladstone’s industrial and commercial sectors, although not all areas were impacted.

The grazing markets throughout the region, after several years of softening, have generally seen moderate to significant increases with the continued strengthened cattle prices achieved in 2016–2017. Sales across the region continued to trend upward. Grazing land values in all Central Queensland local government areas have seen minor to moderate increases, except for in Gladstone Regional Council where values remained unchanged.

Emerald, Central Highlands Regional Council. (Photo courtesy of Central Highlands Development Corporation)

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Valuer-General’s 2018 Property Market Movement Report 8

North QueenslandNorth Queensland encompasses the Burdekin in the south, and extends north to Cape York and west to the Queensland-Northern Territory border.

These local government areas were valued in the 2018 annual valuation:

• Charters Towers Regional Council

• Douglas Shire Council

• Hinchinbrook Shire Council

Charters Towers Regional Council is centred on the town of Charters Towers, located 135 kilometres southwest of the major regional centre of Townsville. Charters Towers is largely a service centre for adjoining pastoral and mining enterprises.

Traditionally, the real estate market in the town of Charters Towers has been closely related to the state of the mining, pastoral and education sectors. The pastoral sector continues to suffer from the prolonged drought, although confidence appears to be returning on the back of record high cattle prices and demand exists for quality land. Over recent years, there has been a reduction in mining opportunities for the town with slowed activity in both the Central Queensland coal mines and the local gold operations, impacting local employment.

These economic drivers have caused a slowing in the volume of sales leading to a slight to minor softening of land values within the Charters Towers residential market, and a general stabilisation of values within the immediate rural residential homesite market. A full review was undertaken of all commercial and industrial lands within the town, resulting in a variation to values in most cases.

Slight to moderate increases in values were experienced in the smaller localities and villages within the local government area including in Homestead, Pentland and Mingela. The exception is the town of Greenvale, where a significant decrease in values has occurred due to a lack of demand.

Demand for larger rural residential blocks has generally flattened, however values have increased moderately for blocks located east of the Mingela Range.

The primary production sector within the local government area, has been very active since the last annual valuation in 2014. The market for grazing lands remains optimistic but cautious. The property sales indicate some variability depending on land quality and location. Whilst the broader trend is static to increasing, some of the values for the poorer quality lands are still below levels set in the last annual valuation.

Based on the available land sales, moderate increases in value have occurred for the better quality pastoral lands, a minor to moderate reduction in the high-cost breeder lands, and a general stabilisation of values elsewhere.

Douglas Shire is located in Far North Queensland about 50 kilometres north of Cairns. The main administrative centre is the town of Mossman, while the main urban centre is Port Douglas.

The economy has advanced through the economic downturn since 2008 with positive evidence in the tourism industry. The property construction market has improved steadily with development and renovation of resorts, units and houses evident in recent times. The local tourism industry continues to lead the recovery with improvements in the market evident from the 2016 period. This has continued into 2017 with sound levels of holiday occupancy levels being maintained. The arable and intensive grazing market is resilient on the back of continued high commodity prices for beef and a strong sugar industry.

The residential market in Mossman has improved with minor increases in values experienced across the board. The commercial and industrial markets have generally remained the same.

On the back of strong tourism, Port Douglas commercial lands have generally experienced minor increases to land values. The industrial locality of Craiglie has also experienced a slight to minor increase in values. Residential lands in Port Douglas have experienced minor increases in values.

Variations to values have existed across localities within the local government area. Minor increases have been experienced in Wangetti, Newell and Daintree; minor to moderate increases in values in Cooya Beach and Craiglie; whilst there has been slight reduction in values at Wonga Beach.

The rural homesite market generally has experienced a minor increase in values north to the Daintree River, with a stabilisation of values north of the river.

The arable and grazing market has generally experienced minor to moderate increases in value, which also better aligns to the levels of value in similar quality adjoining areas in the Far North region.

Hinchinbrook Shire Council is centred on the sugar cane community of Ingham and associated localities about 110 kilometres north of Townsville.Port Douglas, Douglas Shire Counicl (Photo courtesy of

Shutterstock)

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Valuer-General’s 2018 Property Market Movement Report 9

The volume of sales transactions are generally down on historic levels, with the exception of arable lands which are trending to be within normal parameters. Communities such as Forrest Beach are oversupplied with vacant land stock, which has put a downward pressure on land values.

Residential land values within Ingham have generally experienced a softening of values with minor to moderate decreases. This trend is also occurring in the commercial and industrial markets.

The lack of demand for land in Forrest Beach has resulted in minor to moderate reductions of land value. There is limited stock available in the communities of Taylors Beach and due to this, land values have generally remained the same.

Other villages within the local government area including Toobanna, Trebonne, Abergowrie, Halifax and Cordelia have generally experienced a minor softening in land values.

Similar to residential lands, there has been limited demand for rural residential lands throughout the local government area. Minor to moderate reductions in value have generally been experienced across the board, including the Mount Fox locality.

Despite a drop in the sugar price and an increase in the Australian dollar the demand for sugar cane land is still evident, with the market still generally supporting static to slightly increased land values.

Western QueenslandFor the purposes of this report, the Western Queensland region encompasses the pastoral zone local government areas west to the Northern Territory border and south to the South Australia and New South Wales borders.

These local government areas were valued in the 2018 annual valuation:

• Barcoo Shire Council

• Boulia Shire Council

• Bulloo Shire Council

• Diamantina Shire Council

• Murweh Shire Council

• Paroo Shire Council

• Quilpie Shire Council

Boulia Shire Council is situated about 300 kilometres south of the city of Mount Isa, adjacent to the Northern Territory border. The shire has a geographic area of 61 635 sq.kilometres with the town of Boulia as its administrative centre.

Landforms within Boulia Shire are diverse as they encompass parts of the North West Highlands, Mitchell Grass Downs and Channel Country biogeographical regions. Located within the semi-arid to arid zone where rainfall varies considerably, Boulia Shire has been drought declared over successive years.

Despite the drought, a number of primary production transactions have occurred leading up to the date of valuation demonstrating a moderate uplift in pastoral values, generally consistent with an upward movement in values experienced in the south and east.

Residential land values within the town of Boulia have generally remained stable, while there has been significant reductions to values in the town of Urandangi, albeit from a low base.

In Barcoo and Diamantina shire council areas, urban land values have been maintained at previous levels. Many of the smaller towns are feeling the impact of prolonged drought conditions and subsequent population drift away, due to limited employment opportunities. While there has been a partial break in seasonal conditions, it may take some time for the smaller towns to recover, as demand for labour in the rural sector recovers as graziers re-stock. All urban areas are generally static within the local authorities of Bulloo and Quilpie, since the last revaluation in 2014.

In Paroo and Murweh shires last valued in 2015, the towns of Charleville and Cunnamulla recorded significant reductions in value, while the towns of Morven and Augathella in Murweh Shire recorded significant increases.

The increase in values within the rural property market within the south west are being driven by the continued strengthened beef commodity prices and low interest rates. Significant increases in value have occurred within the mulga lands due to its affordability. The Warrego flood plain market is generally static. Carbon credit affected sales have been occurring within the mulga market. Sales between producers are being sold at generally similar levels within this market. The impact on land values from the construction of wild dog exclusion fencing has yet to be determined in the market place, with regard to those properties that have fencing installed and those that don’t.

(Photo courtesy of S Barlow)

Page 14: Valuer-General's 2018 Property Market Movement Report · amount for which rural land could be expected to sell for, at the date of valuation, without physical improvements such as

Valuer-General’s 2018 Property Market Movement Report 10

RuralContinued optimism generally surrounded rural property markets this year, even though the majority of Queensland remained drought declared. This market confidence has generally been driven by high commodity prices within the beef and sheep industries and continued low interest rates. This optimism in rural markets is also being supported by investment in the construction of exclusion fences to control wild dogs on many rural properties across Queensland.

Rural land values have continued to grow on the back of landowners’ expectations that conditions in agriculture have improved and continue to do so. Potential purchasers however still remain cautious, until there is an improvement in weather conditions. Queensland has not seen a reasonable season for some time, and many primary producers are still waiting for rains to start before re-stocking after the prolonged drought conditions.

Strong cattle market competition exists between re-stockers, for limited availability. The Eastern Young Cattle Indicator reflects this situation. 1 October 2014: 365 cents/kg/cwt (carcase weight), 4 October 2016: 719 cents/kg/cwt, 3 October 2017: 547.84 cents/kg/cwt and 30 January 2018: 534.25 cents/kg/cwt. 1 This trend has been impacted by current weather conditions, and has impacted on rebuilding efforts. Demand for high quality Australian beef remains strong.

The Australian wool market closed in 2017 in record territory, with the Eastern Market Indicator closing at 1760c/kg in December 2017.2 In early 2018 it has continued to rise to 1822c/kg compared to around 400c/kg less in 2017,3 resulting in higher prices for re-stockers rebuilding their flock.

The effect of continued strengthening of beef commodity prices is particularly evidenced within the better quality property markets of Central Queensland, Maranoa and the Darling Downs. There has also been significant interest within the mulga property market in south-west Queensland due to its affordability.

Generally, the bulk of market purchases are by existing family business acquiring additional property.

Increased rural values are generally occurring throughout the majority of local authorities being revalued across Queensland, with sales across Maranoa, Goondiwindi, Sunshine Coast regional councils and Murweh and Douglas shires generally showing significant increases.

Generally, moderate increases have occurred in the rural areas of Boulia, Diamantina, Barcoo, Banana and Quilpie shires, and the regional councils of Isaac and Toowoomba.

Minor to slight increases generally occurred in Bulloo, Paroo, Hinchinbrook shires and the regional councils of Central Highlands, Scenic Rim and Charters Towers, while markets in Gladstone and Fraser Coast regional councils remained static.

Full reviews of rural valuations are currently underway in many locations across Queensland to improve uniformity between valuations. The 2018 annual valuation included a full review of Murweh Shire Council, the Taroom area of Banana Shire and the eastern areas of Goondiwindi Regional Council. The south west local government areas were also analysed as common markets for the respective country types. These market based reviews have resulted in varied changes to valuations being issued.

Rural land purchased by resource companies for the purpose of mining or other extractive industry are not used to determine statutory land values of rural land. This market activity has now slowed due to the state of the resource sector, and respective markets are now being influenced by rural landowners.

Despite a drop in the sugar price and an increase in the Australian dollar, the demand for sugar cane land is still evident with the market still generally supporting static to slightly increased land values.

1 Source: Meat and Livestock Australia 2 Source Landmark Wool Report 3 Queensland Country Life

Cattle (Photo courtesy of S Barlow)

Page 15: Valuer-General's 2018 Property Market Movement Report · amount for which rural land could be expected to sell for, at the date of valuation, without physical improvements such as

Valuer-General’s 2018 Property Market Movement Report 11

Figure 3 Overall percentage movement in total value since the previous annual valuation for the whole state and all local government areas valued in the 2018 annual valuation.

41.9

25.9

21.8

19.7

18.5

18.1

17.9

17.3

15.2

11.3

10.8

10.4

8.8

8.3

8.2

6.4

5.5

3.8

2.8

1.6

-5.1

-9.0

-9.2

-20

-1001020304050

MARANOA

GOONDIWINDI

QUILPIE

BARCOO

BOULIA

MURWEH

DIAMANTINA

SCENIC RIM

BANANA

NOOSA

DOUGLAS

SUNSHINE COAST

STATEWIDE

GOLD COAST

TOOWOOMBA

CENTRAL HIGHLANDS

FRASER COAST

BULLOO

ISAAC

CHARTERS TOWERS

PAROO

GLADSTONE

HINCHINBROOK

% change

Loca

l gov

ernm

ent a

rea

Ove

rall

perc

enta

ge c

hang

e by

loca

l gov

ernm

ent a

rea

2018

ann

ual l

and

valu

atio

n

Page 16: Valuer-General's 2018 Property Market Movement Report · amount for which rural land could be expected to sell for, at the date of valuation, without physical improvements such as

Valuer-General’s 2018 Property Market Movement Report 12

Table 1 New median value and percentage movement in median value for residential and rural residential land since the previous annual valuation in local government areas valued in the 2018 annual valuation.

Local  government

area

Residential Rural residential

New median value

($)

Median value

change (%)

New median value

($)

Median value

change (%)

Banana 65 000 -1.5 73 000 -7.6

Barcoo 10 000 0.0 21 500 0.0

Boulia 9 000 0.0 23 000 0.0

Bulloo 4 000 0.0 6 400 0.0

Central Highlands 58 000 0.0 124 000 0.0

Charters Towers 49 500 -4.8 110 000 0.0

Diamantina 19 000 0.0 50 000 0.0

Douglas 140 000 12.0 152 500 2.4

Fraser Coast 129 000 10.3 117 000 2.6

Gladstone 95 000 -15.9 118 000 -6.4

Gold Coast 345 000 9.5 390 000 5.4

Goondiwindi 75 000 0.0 130 000 12.1

Hinchinbrook 56 000 -22.2 95 000 -12.0

Isaac 37 000 -46.4 74 000 -17.8

Maranoa 58 000 0.0 158 750 5.8

Murweh 12 000 -57.9 28 000 -58.2

Noosa 270 000 13.7 202 500 8.0

Paroo 4 700 -52.5 16 000 -60.0

Quilpie 24 000 0.0 31 000 0.0

Scenic Rim 167 500 14.0 237 500 13.1

Sunshine Coast 247 500 8.8 275 000 10.0

Toowoomba 185 000 7.3 197 500 5.3

Page 17: Valuer-General's 2018 Property Market Movement Report · amount for which rural land could be expected to sell for, at the date of valuation, without physical improvements such as

Valuer-General’s 2018 Property Market Movement Report 13

Table 2 New total value and percentage movement in total value for commercial, industrial, multi-unit and primary production land since the previous annual valuation in local government areas valued in the 2018 annual valuation.

Loca

l gov

ernm

ent a

rea

Mul

ti-u

nit

Com

mer

cial

Indu

stri

alPr

imar

y pr

oduc

tion

New

to

tal

valu

e

($)

Tota

l va

lue

ch

ange

(%

)

New

to

tal

valu

e

($)

Tota

l va

lue

chan

ge

(%)

New

to

tal

valu

e ($

)

Tota

l va

lue

ch

ange

(%

)

New

to

tal

valu

e

($)

Tota

l va

lue

ch

ange

(%

)

Ban

ana

3 7

12 0

00-1

.0 1

6 32

5 40

0-1

1.3

37

749

834

-1.2

1 35

7 06

2 89

022

.0

Bar

coo

106

500

0.0

81

000

0.0

63

281

500

20.2

Bou

lia 1

86 6

10-5

.8 1

72 2

800.

0 6

9 75

2 10

019

.3

Bul

loo

44

600

0.0

215

800

0.0

44

981

500

2.7

Cent

ral H

ighl

ands

24

651

100

-1.1

77

493

600

0.1

76

805

770

0.0

1 79

6 75

9 04

09.

5

Char

ters

Tow

ers

2 3

88 5

00-3

.7 1

8 35

3 70

05.

8 1

5 30

0 44

04.

2 4

43 5

41 1

004.

7

Dia

man

tina

540

000

0.0

459

850

0.0

43

387

000

19.8

Dou

glas

272

360

000

8.6

161

691

500

7.2

39

500

200

6.9

101

681

100

47.0

Fras

er C

oast

276

281

000

5.2

397

063

200

0.5

162

024

800

0.5

230

532

000

0.0

Gla

dsto

ne 1

30 1

64 0

00-1

2.3

206

098

400

-5.8

266

744

050

-9.3

230

757

520

0.0

Gol

d Co

ast

17 1

75 6

45 4

006.

64

095

568

700

8.5

3 69

2 64

9 50

015

.4 1

25 0

46 8

000.

2

Goo

ndiw

indi

6 4

57 0

0019

.9 3

9 82

2 25

02.

9 5

5 77

2 50

013

.5 7

78 7

68 9

0038

.0

Hin

chin

broo

k 6

602

000

-18.

9 3

9 12

7 00

0-2

1.4

14

991

000

-10.

2 3

18 2

93 6

004.

8

Isaa

c 1

1 40

6 00

0-2

7.3

25

917

000

-20.

8 2

4 18

9 40

0-2

3.8

1 81

4 73

5 61

018

.8

Mar

anoa

5 7

65 4

00-0

.3 7

0 68

0 60

00.

6 9

1 99

2 15

00.

11

853

246

070

59.6

Mur

weh

4 6

35 8

00-5

7.0

1 8

15 7

00-5

6.7

257

778

290

52.9

Noo

sa1

426

416

500

4.5

232

195

000

2.7

139

566

000

9.5

61

565

500

20.1

Paro

o 1

085

800

-58.

2 4

10 0

00-5

9.7

93

385

200

3.5

Qui

lpie

770

450

0.0

1 1

98 8

000.

0 5

4 70

4 80

026

.3

Scen

ic R

im 5

3 89

4 50

013

.0 1

63 7

32 5

001.

1 8

0 28

4 80

04.

71

121

213

320

11.0

Suns

hine

Coa

st3

418

594

200

12.8

1 71

0 89

4 40

05.

6 7

59 6

04 5

007.

2 3

82 3

03 1

0030

.4

Toow

oom

ba 5

28 7

46 5

000.

3 8

45 3

98 9

807.

5 7

75 0

30 1

325.

32

265

847

230

23.3

Page 18: Valuer-General's 2018 Property Market Movement Report · amount for which rural land could be expected to sell for, at the date of valuation, without physical improvements such as

Valuer-General’s 2018 Property Market Movement Report 14

Queensland drought situation as at 27 September 2017

Figure 4: Queensland drought situation as at 27 September 2017 Source: www.longpaddock.qld.gov.au

Page 19: Valuer-General's 2018 Property Market Movement Report · amount for which rural land could be expected to sell for, at the date of valuation, without physical improvements such as

Valuer-General’s 2018 Property Market Movement Report 15

Queensland drought situation as at 11 January 2018

Figure 5: Queensland drought situation as at 11 January 2018 Source: www.longpaddock.qld.gov.au

Page 20: Valuer-General's 2018 Property Market Movement Report · amount for which rural land could be expected to sell for, at the date of valuation, without physical improvements such as