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State Valuation ServiceValuer-General’s 2020Property Market Movement Report

Cover photos – clockwise from top leftAerial view of suburbs, Brisbane. (Photo courtesy of Shutterstock)Windmill, Darling Downs. (Photo courtesy of DNRME image library)Railroad track passing through field with sugar cane on left and macadamia trees on the right, Bundaberg. (Photo courtesy of Shutterstock)Aerial view of Townsville, North Queensland. (Photo courtesy of Shutterstock) State of Queensland, 2020.The Queensland Government supports and encourages the dissemination and exchange of its information. The copyright in this publication is licensedunder a Creative Commons Attribution 3.0 Australia (CC BY) licence.Under this licence you are free, without having to seek our permission, to use this publication in accordance with the licence 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 licence terms as indicated.For more information on this licence, visit .en.The Queensland Government is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds.If you have difficulty in understanding this document, you can contact us within Australia on 13QGOV (13 74 68) and we will arrange an interpreter toeffectively communicate the report to you.CS9741 03/20Valuer-General’s 2020 Property Market Movement Reportii

ContentsValuer-General’s forewordivIntroduction2Property market movement2Overall market trends3Brisbane3Gold Coast4South East Queensland4Wide Bay–BurnettFraser CoastBundaberg455Darling Downs5Central QueenslandBananaCapricorn CoastMackay5566North QueenslandCassowary CoastHinchinbrookTorresTownsville66778North West Queensland8Rural10Figure 1: Local government areas and the 2020 annual valuation program1Figure 2: Property land use by region, 20202Figure 3: Overall percentage movement in total value since the previous annual valuationfor the whole state and all local government areas valued in the 2020 annual valuation11Figure 4: Queensland drought situation as at 1 September 201914Figure 5: Queensland drought situation as at 1 December 201915Table 1:Table 2:New median value and percentage movement in median value for residential andrural residential land since the previous annual valuation in local government areasvalued in the 2020 annual valuation12New total value and percentage movement in total value for commercial, industrial,multi-unit and primary production land since the previous annual valuation inlocal government areas valued in the 2020 annual valuation13Valuer-General’s 2020 Property Market Movement Reportiii

Valuer-General’s forewordI am pleased to release this year’s property marketmovement report, ahead of the issue of the 2020 annualstatutory land valuations on Wednesday, 4 March 2020.Following a state wide market survey and consultationwith local government and industry groups, 21 localgovernment areas have been valued in accordance withthe Land Valuation Act 2010.A market survey report prepared for each local governmentarea details the sales of land in the area since the lastvaluation was made and the probable impact of thosesales on the value of land in an area. In addition, valuersalso consider factors that impact on the value of the landsuch as the state of the economy, commodity prices andpopulation trends.The 21 local government areas (Figure 1) receiving newvaluations this year are: Banana, Brisbane, Bundaberg,Burke, Cassowary Coast, Cloncurry, Flinders, Fraser Coast,Gold Coast, Goondiwindi, Hinchinbrook, Livingstone,Mackay, McKinlay, Mount Isa, Richmond, Rockhampton,Scenic Rim, Torres, Townsville and Winton.These local government areas represent approximately825,000 properties or 48 per cent of Queensland’svaluation roll.The new valuations will take effect on 30 June 2020 forlocal government rating, state land tax and state landrental purposes (where applicable).This report summarises the comprehensive analysis ofall property markets within the 2020 annual valuationprogram for Queensland by a team of regionally-basedvaluers from the State Valuation Service of the Departmentof Natural Resources, Mines and Energy.There are continued signs of strength in some areasof Queensland’s property market. Generally, acrossQueensland there has been increased sales activity inrural markets. This has resulted in an uplift in land valueswithin the majority of grazing, horticultural, small crop anddryland farming industries.Continued strong cattle prices within the beef industry andcontinued low interest rates are driving this confidence,even though the majority of the state remains droughtdeclared.Overall, the Queensland housing market remains sluggish,with sales volumes easing, although house prices areproving resilient.1Consistently high numbers of residents relocating fromthe southern states to Queensland will see the localpopulation rapidly increase, pushing down supply and inturn, driving prices upwards.2Looking at other economic indicators, Queensland Treasuryadvise ‘construction activity in Queensland continuesto be supported by ongoing growth in domestic dwellingrenovation activity.3Residential property prices have stabilised, followingfalls over the year to June 2019, underpinned by robustpopulation growth and lower interest rates. Nationally,new housing approvals are around 40% lower than theirlate-2017 highs. Consequently, housing constructionacross the country is forecast to remain subdued for thenext 18 to 24 months. 4Continued caution by households has also resulted inthe outlook for dwelling investment in 2019–20 beingsofter than at budget. However, with apartment approvalsappearing to have bottomed out, dwelling investment isexpected to return to growth in 2020–21.5The Find your annual land valuation online search displaysannual valuation information from the valuation roll,residential market information and mapping products inan easy-to-use online search. The search tool also displaysthe movement in the residential median values of majorresidential localities and the local government area as awhole. Queensland Globe continues to provide landownerswith access to more detailed valuation information.Our online resources including a rural sales map and theQueensland Globe can be viewed at www.qld.gov.au/landvaluation, and can help you better understand yourland valuation and local property market.With over 406,000 Queensland landowners alreadysubscribed to receive their valuation notice electronically,I encourage all landowners to have their future valuationnotice 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 movementreport informative.Neil BrayValuer-GeneralState Valuation Service1, 2 Queensland Market Monitor September 2019, Issue 43, Real Estate Institute of Queensland, p43, 4, 5 Queensland Budget 2019–20: Mid year fiscal and economic review, Queensland Government, p6 and 9Valuer-General’s 2020 Property Market Movement Reportiv

2020 Annual Valuation ProgramInsetTORRES OK SHIREBRISBANE REDLANDLOCKYERCITYCITYVALLEYIPSWICHREGIONAL OLD COASTCITYSCENIC SHIRENOOSASHIREIncluded in ProgramValued (21)HINCHINBROOK SHIRENot valued (41)TOWNSVILLE CITYBURDEKIN SHIREMOUNT SHIREWHITSUNDAYREGIONALMACKAY REGIONALFLINDERS SHIRECLONCURRYSHIREBOULIASHIREISAAC REGIONALWINTON SHIRELIVINGSTONE IONALDIAMANTINA SHIREBARCOO SHIREQUILPIE SHIREMURWEH REGIONALInsetTOOWOOMBAREGIONALBULLOO SHIREPAROO SHIRECS9772 2/20GLADSTONEREGIONALBALONNE e 1: Local government areas and the 2020 annual valuation programValuer-General’s 2020 Property Market Movement Report1

IntroductionProperty market movementTwo methodologies are used to undertake statutory landvaluations in Queensland—site value and unimprovedvalue.The volume of daily lodgements recorded with the Registrarof Titles decreased over the first half of the 2019–20financial year with an average of 2673 daily lodgements—down 2 per cent from the previous financial year.Site value is used to value all non-rural land. It is theamount for which non-rural land could be expected tosell for, at the date of valuation, without any structuralimprovements on the land (e.g. houses, buildings orfences). Site value includes site improvements made to theland such as earthworks (e.g. levelling, filling or drainageworks). Excavations and drainage associated with abuilding are not included in site value.Unimproved value is used to value rural land. It is theamount for which rural land could be expected to sell for, atthe date of valuation, without physical improvements suchas houses, fences, dams, levelling or earthworks. If yourland has been valued on an unimproved basis, it is eitherzoned rural (or equivalent) or designated rural for statutoryvaluation purposes.Single unit residentialRural residentialMulti-unit residentialCommercialIndustrialPrimary productionOtherProperty value changes, both up and down, can beattributed 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 eventsTable 1 (page 12) shows the new median value andpercentage movement for residential and rural residentialland in the local government area since the previousannual valuation. Table 2 (page 13) shows new total valueand percentage movement in total value for each land usecategory since the last annual valuation was issued.Figure 3 (page 11) shows the overall percentage movementin total value since the previous valuation for each localgovernment area included in the revaluation program, aswell as the whole state.The overall percentage movements in land values for the2020 annual valuation are summarised below: Fifteen local government areas recorded overallincreases between 0.2 per cent (Townsville) and52.1 per cent (Winton). Of the 15 areas that increased, eight increased by0–10 per cent, one increased by 10–20 per cent and sixrecorded increases of more than 20 per cent.Six local government areas recorded an overall decrease invalue of between 2.3 per cent (Cassowary Coast) and44 per cent (Mount Isa).Figure 2: Property land use by region, 2020Valuer-General’s 2020 Property Market Movement Report2

Overall market trendsGenerally the property markets in the larger urban centresin South East Queensland and coastal towns in regionalQueensland have remained static or shown minor valuechanges reflecting local economic conditions. Thoseregional centres whose economies are closely linked tothe resource sector such as Mount Isa, Moura and Biloelahave seen significant reductions in land value from theprevious valuations.The property market in late 2019 was influenced by: Weakness in the global economy and a slowdown indomestic economic growth Continuing drought and impact on crop production Continuing caution in new dwelling investment Subdued household spendingHowever, these drivers were offset by: Government investment in infrastructure Growth in domestic dwelling renovation activity Stable demand for Queensland commodities andservices Strong domestic and international tourism at the time ofvaluation Continuing low borrowing costs Increase in labour force participationrate environment. Another positive driver in the ruralmarket included the further development of horticulturalindustries such as small crops and tree crops in the WideBay region.BrisbaneThe residential market is the most significant land usewith approximately 305,000 valuations in the suburbs ofBrisbane. The residential median land value increasedslightly from 455,000 to 460,000.The median values of 115 suburbs did not change.There were minor increases to several inner northernsuburbs including Kalinga and Wooloowin. A numberof Brisbane’s outer southern suburbs reflected minorto moderate increases due to their affordability andincreased competition. The new median value forDurack is 280,000.There were seven suburbs that showed slight to minordecreases. The Moreton Island townships of Bulwar,Cowan Cowan and Kooringal showed minor decreases.The land values of the low to medium density multi-unitresidential markets across Brisbane have remained static.The land values of high-density sites, located in the Cityfringe have seen minor decreases as demand for the largerredevelopment sites has softened due to the existingsupply of units.The total land value for rural residential land has increasedslightly. The median land value remains at 660,000.In contrast to the subdued conditions in a number ofurban areas, the rural property market continued toimprove with moderate to significant increases in mostareas throughout Queensland.The demand for industrial land in Brisbane continuesto outstrip supply. This is particularly evident of landwith good access to major road networks in the primetransport and logistics market. This demand, as well asthe enhancements to infrastructure in the Pinkenba area,has resulted in some significant increases to sites over twohectares in size in this locality.Although the majority of the state remained droughtdeclared, the market improvement was driven by thecontinued effects of strong commodity prices suchas those within the beef industry and the low interestSegments of the Brisbane commercial market have beenactive in 2019. For example, childcare, medical and largeformat retail sectors have created their own localiseddemand. However, the overall market has remained static. Strengthening business investment Solid population growthBrisbane CBD. (Photo courtesy of Shutterstock)Valuer-General’s 2020 Property Market Movement Report3

The significant infrastructure commitment by all levelsof governments continues to impact the Brisbane CBDand the office market fundamentals. There has been asteady decline in total vacancy rates since January 2018,consistent growth in tenant demand and positive netabsorption. There is currently rental growth in both primeand secondary markets, but the incentives offered remainrelativity high. Investment activity market remains strongand yields have continued to tighten. The site valuesacross the CBD have largely remained static or decreasedslightly since the last valuation in 2019.Gold CoastLand values on the Gold Coast have risen slightly sincethe 2018 valuation. The uplift is the result of a slightoverall increase in residential land values, and a moderateincrease in industrial land values.Growth in industrial land value was strongest in coastallocations such as Mermaid Waters, Miami and BurleighHeads where values increased significantly. Yatala landvalues increased by a lesser, but still moderate amount.Farming land values increased significantly across theGold Coast local government area as a result of a marketbased review.South East QueenslandSouth East Queensland encompasses the valley areaswest of Greater Brisbane, coastal areas north to Noosa andareas to the south of Greater Brisbane to the New SouthWales border, excluding Brisbane and the Gold Coastareas.The Scenic Rim Regional Council was valued as part of the2020 annual valuation.Residential land values in central coastal and highervalued residential areas such as Mermaid Waters werestatic with some slight increases. The stronger areaswere the middle range suburbs such as Pacific Pinesand Helensvale that had the highest increase in overallresidential land value. Southern beach areas such asCoolangatta and Tugun have also performed well withminor overall increases in these localities.The demand for land in the Scenic Rim region has beensteady resulting in a minor increase in land values since the2018 valuation. The range of demand has resulted in staticto slight increases in land values in the eastern half of thearea, and slight to significant increases in the western half.Residential land values range from a static Beaudesertmarket, minor decrease to moderate increase in TamborineMountain, and minor to moderate increases in Boonah.The demand for larger and rural-residential land resultedin an overall minor increase in value. Land values in thesouthern valleys were generally stronger than in northernhinterland locations such as Wongawallen.Rural homesites across the area reflected the broadervariable change with a generally static to slightlyincreasing market on the eastern side, and minor tomoderate increases in the western half. Farming landvalues experienced a similar locational market movementalong with stronger growth in value in properties lessthan 40 hectares. Commercial land values in Boonahand Canungra increased by minor to moderate amounts,while values generally remained static in Beaudesert andTamborine Mountain. The industrial market was mostlystatic with some minor to moderate increases in Boonahand Kalbar. Multi-unit land values in the region have alsoeffectively remained static.Reduced demand for development sites has resulted ina decline in the Surfers Paradise residential unit market,but overall multi-unit land value increased slightly. Valuesin southern oceanfront locations experienced minorincreases, but a strong demand for development sites hasresulted in a significant increase in multi-unit land valuesin Burleigh Heads.Commercial land value increased by a minor amountoverall, with only a slight increase recorded in theSouthport core commercial area.Wide Bay–BurnettWide Bay–Burnett encompasses the service centres ofGympie, Maryborough, Hervey Bay and Bundaberg, west tothe southern communities of Kingaroy and north to Monto.These local government areas were valued in the 2020annual valuation: Fraser Coast Regional Council Bundaberg Regional CouncilAerial panorama of houses on the Gold Coast(Photo courtesy of Shutterstock)Valuer-General’s 2020 Property Market Movement Report4

Fraser CoastDarling DownsFraser Coast Regional Council was last valued in 2018 andsince that time the region has seen a minor growth in thetotal statutory value of the local government area. Theoverall change was driven by minor increases in parts ofthe residential and rural living sectors, and a significantincrease in farming land values. Residential areas withinthe major urban centre of Hervey Bay, as well as a numberof coastal localities including Poona, Dundowran, Toogoomand Burrum Heads saw some increases in value, while inMaryborough and in the smaller hinterland villages’ valuesgenerally remained static. Other land use sectors includingcommercial and industrial have generally remainedunchanged reflecting local economic conditions. Ruralliving sites are a significant land use in the Fraser Coastregion and values have increased in most areas around themajor centres and also to the west of region.Darling Downs encompasses the regional centre ofToowoomba, areas south to the Granite Belt and New SouthWales border, and west to Maranoa.BundabergRural land sales have shown significant increases in valuethroughout the larger mixed brigalow farming and irrigatedfloodplains in the locality of Goondiwindi, and to the westof the region within the North Talwood locality. Rural salesin the balance of the Goondiwindi Regional Council to theeast, associated with smaller irrigation and mixed farms tolarge traprock lands, remained generally static.Bu