Rising land values in Brisbane driven by fundamental market forces

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A recent article by Real Estate Business sites a recent government report regarding Brisbane land values trending on the up.

Brisbane’s land values are generally trending on the up and up, according to a new government report.

The Valuer-General’s 2018 property market movement report, following a statewide market survey and consultation with local government, has completed a valuation of some of Queensland’s largest property markets and has found that land values have risen by 6 per cent since the last valuation.

Over the valuation period between 2016 and 2017, single residential units saw high levels of competition from local, interstate and international buyers. In this market, a total of 47 suburbs in the city saw no median value increase; 87 suburbs saw rises up to $50,000; 32 saw rises between $50,000 and $75,000; 12 recorded rises above $75,000 (including Hamilton, Chapel Hill, Seven Hills, Carindale, Holland Park and Sunnybank).

For the multi-unit market, there were slight rises recorded due partly to the Brisbane City Plan 2014, a plan to increase interest in apartments.

However, the report noted that lowered demand and over-supply meant activity dropped in the latter half of 2016.

The report also mentioned that suburbs impacted by the 2011 floods have seen healthy recovery, with property being sold in some of the flood-affected land at prices similar to non-flood-affected land.

Looking further to Logan, Ipswich and Moreton Bay Regional Council, the report showed that these areas all experienced improving land areas, with the residential property market seeing rising land values driven by demand for housing in the Greater Brisbane area.

Logan City saw minor to moderate rises in residential land values due to demand for property located in central and affordable suburbs, such as Browns Plains, while eastern suburbs like Springwood and Shailer Park saw only minor value rises.

A demand for farm land has had a knock-on effect on overall land value in Logan City, along with the Stockleigh, Undullah and Veresdale areas, and in Ipswich City in Purga, Peak Crossing and Willowbank.

Meanwhile, Ipswich City’s residential land values experienced moderate rises in Springfield Lakes and Redbank Plains, while multi-unit land values in Bellbird Park, Bundamba and Goodna saw minor to moderate rise, according to the report.

In the Moreton Bay Regional Council region, residential land values rose since last valuation, with the Redcliffe area as well as southern areas nearby Brisbane City experiencing slight to minor land value increase; Caboolture and areas nearby Pumicestone Passage saw very minor value increases; and small hinterland towns saw for the most part no change, aside from a minor rise in Dayboro.

For multi-unit land values in the region, Caboolture saw mostly no movement, while southern areas near Brisbane experienced slight to minor rises.