Categorized | Community

Land value fall ‘doesn’t mean rates drop’

Bayside Bulletinby JUDITH KERR
29 Mar, 2012 12:00 AM

REDLAND City Council chief executive Gary Stevenson said this week’s 6.7 per cent drop in land valuations across the city “did not necessarily” equate to a rate reduction.

The valuations, a snapshot of land values on October 1, 2011, include a 4.9 per cent drop in the value of residential properties.

Location Movement (%) Median new value
All of Redland City Council -4% $242500
Alexandra Hills 0% $205000
Amity -4.76% $300000
Birkdale 0% $263000
Capalaba 0% $225000
Cleveland -8.06% $285000
Coochiemudlo Island -20% $146000
Dunwich -4.44% $215000
Lamb Island -19.79% $38500
Macleay Island -20.45% $35000
Mount Cotton -1.19% $207500
Ormiston -5.19% $292500
Point Lookout -17.8% $485000
Redland Bay -10.19% $242500
Russell Island -31.94% $24500
Thorneside 0% $265000
Thornlands -5.8% $260000
Victoria Point -10.38% $237500
Wellington Point -5.26% $270000

 

Mr Stevenson said the fall in residential valuations did not mean rates would fall 4.9 per cent and said policy also influenced rates.

He said rates were set using a range of factors including land valuations and “it is too early to speculate on how these valuations will impact on the rates for 2012-2013”.

“Where we have very different valuation movements across the city, there will be a shift in the rate burden from one area to another,” Mr Stevenson said.

“If an area is significantly different to the average of the city, as a general rule, it will probably pay less but other parts of the city will make up for that.

“So (this news) can mean areas where valuations have gone down by much more than the average across the city, will end up paying less rates.

“Council’s budget and rates for 2012-13 will be determined and agreed by the newly elected council following the council elections on April 28,” he said.

Mr Stevenson said the figures, released on Wednesday by the Department of Environment and Resource Management, proved there was still volatility in the local property market.

He said the figures also showed properties at the higher end of the market had experienced a valuation correction after last year’s 7 per cent increase to mainland residential property values.

Valuer-General Neil Bray said property values at the lower end of the market, including some of the bay islands, had suffered due to the lack of sales.

Mr Bray said despite the city-wide fall of 6.9 per cent, which included an 8per cent slump in the average commercial property value, non-waterfront residential land retained its value.

This year, not one of the 23 recorded Redland residential suburbs where land valuations are recorded, experienced a rise in valuations.

Hardest hit were parts of North Stradbroke Island and the bay islands, where the median valuation on Russell Island fell a whopping 31.9 per cent to $24,500, down from $36,000 in 2010.

North Stradbroke Island land values recorded small reductions at Dunwich, down 4.4 per cent, and Amity Point, down 4.8 per cent, with the higher-valued Point Lookout falling 17.8 per cent.

Coochiemudlo Island recorded a fall in valuation of 20 per cent, with the median price for a block of land there $146,000.

Land on Lamb Island dropped 19.8 per cent in value, bringing the average value of a residential block of land on the island to $38,500, down from $48,000 in the 2010 valuation.

Mr Bray said the fall in land value on Russell Island was consistent with the slump in demand for bay island lands “which have limited access and limited development potential”.

Mainland suburbs that fared the best were Alexandra Hills, Birkdale, Capalaba, Sheldon and Thorneside, which all recorded neutral land valuations.

Mr Bray said median land value in Victoria Point fell 10.4per cent, which he said was consistent with the softening market for higher-valued lands.

Reductions in land values of about 10 per cent were recorded in the investor-driven commercial, industrial and multi-unit sectors in Cleveland and Capalaba.

Residential units land also fell in value by about 10 per cent, but residential rural lands recorded little to no change. Valuations will be posted to Redland residents in May.

Go to the Bayside Bulletin for the original article.

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