Statutory land valuations were recently issued for more than 20 local government areas within Queensland, including the Fraser Coast, sparking a great deal of interest among property owners.
If you own property in the Fraser Coast Regional Council area, you should have received this updated land valuation from the Valuer-General. You may have been shocked that the average land value has risen on average by more than 25 percent and wonder why this is so.
The Valuer-General reassesses land values every four years, focusing solely on the land rather than any buildings or improvements on it. Valuations for the Fraser Coast were most recently completed at the end of October 2023 and released in March 2024. These valuations will come into effect in June, following a 60-day period that allows for objections from the property owner if they believe it is inaccurate.
The methodology behind these valuations considers numerous factors including zoning, local market trends, and the physical state of the land. Important elements like accessibility and environmental issues, such as the presence of pests and weeds, are also taken into account.
For those owning properties valued over the land tax threshold of $600,000, these valuations determine the amount of state land tax payable. Local councils can use land valuations as a baseline for setting rates, but also adjust rates independently, based on other factors.
An interesting aspect of land values that property owners should understand is that statutory land valuations specifically reflect the demand in the area over the previous four years, and are not dynamic like the local property market.
For instance, the recently issued valuations consider a period that was influenced by the COVID-19 pandemic, where the local property market boomed due to heightened demand, and the state experienced a surge in migration due to relative affordability in areas such as Maryborough and Hervey Bay for people looking to relocate to coastal areas from capital cities.
Due to the delayed cycle that exists between valuations, theoretically speaking, land values could increase dramatically, while the local real estate market completely stalls. Therefore, high land valuations do not necessarily equate to increased property prices when selling on the local real estate market.
Conversely, land valuations can also fall dramatically despite the property market booming, and this has been reported on recently by the ABC. Why did land values go backwards in NSW while property prices boomed? - ABC News
More information is available from the Queensland Government
Comments