Most Savvy investors know that it is the land the appreciates and the dwelling the depreciates, so when the Valuer-generals 2017 Property Market Movement Report was released yesterday it was a buzz of excitement around the Hot Property office (Yes we don’t get out much hahaha)
The report noted that the overall market trend showed an increase in urban land values in the Brisbane area, but also noted falling or static property values in regional Queensland.
Property value changes, both up and down, can be attributed to a number of factors such as:
- supply and demand within the market place
- consumer confidence
- availability of finance
- local, national and global economic factors
- the effects of extreme weather events
In Brisbane we have seen an increase in consumer confidence as the media depicts Brisbane as a Hot spot for 2017. The report notes an increase of six percent overall since the last round of valuations issued in 2016 which is a positive sign for Brisbane.
The Queensland Government and Brisbane City Council plans to develop a number of landmark projects including the Queens Wharf and the Howard Smith Wharves. As well as major projects currently under consideration that include the Cross River Rail and the Brisbane International Cruise Ship terminal. All of these factors are seen to be positives to the Brisbane economy and the property market as well.
If we look at the Greater Brisbane area which includes Ipswich, Logan and Moreton bay we see that land values are static, with only a select few showing increases in values. This doesn’t come as a surprise as these outer areas generally suffer from interior capital growth, and lack of consistency in performance.
Another interesting point raised by the report is that in suburbs impacted by flooding in 2011, allowances of up to 25 per cent were applied by the Valuer-General for flood impact. In recent years, there has been a growing trend where in some flood impacted suburbs, buyers have been purchasing flood-impacted land at prices close to the prices being paid for non-flood impacted land. However, flood impact allowances have continued where evidence demonstrates a flood allowance should still apply, this is a concerning sign given the future risk of flooding again, in these specific areas.
To take a look at the full report please contact the team at Hot Property and we would be happy to send you out a PDF copy.