Land values in Cassowary Coast drift lower

The 2017 Valuer General’s report sees Cassowary Coast land valuations updated (last done in the 2015 report). The Report notes that..

“The residential markets in Cassowary Coast have been variable throughout the region. The agricultural sector is generally strong with high commodity prices, particularly within the sugar and grazing industries, being a major driver in the property market. Farming land values have generally increased over the last 24 months as sales volumes have picked up. This is offset somewhat by uncertainty within the banana industry due to biosecurity concerns relating to Panama disease. The tourism market is still slow and confined mainly to the driving holiday
market.

Residential values have generally softened in the town of Innisfail, as well as in smaller coastal and hinterland localities such as Wangan, Mourilyan, Mundoo, South Johnstone, Silkwood, El Arish and Kennedy. Values have generally remained unchanged in the coastal localities of Mission Beach and Wongaling Beach, whilst South Mission Beach, with its oversupply of vacant allotments, continued to show a drop in value. In the southern Cassowary Coast townships, such as Tully and Cardwell, values have generally been stable.

Commercial, industrial and multi-unit lands have generally mirrored the residential trend in Cassowary Coast townships. Values have softened for premium sites within Edith and Rankine (sic) streets, Innisfail.”

In terms of averages, the median residential valuation has declined by 9.3% since 2015 to $68,000 while rural-residential is up 2.7% to $113,000.

Overall across the region valuations are down 0.3% since 2015. The total value of primary production land has increased by 25.1% to $335 million since 2015.

Townsville also got revalued this year and saw median residential values decline by 2.1% to $143,000. The Report notes..

“The Townsville property market has been impacted by high unemployment, high rental vacancies, and a downturn in the mining sector, which has created a relatively subdued market. This is tempered however by returning confidence associated with project announcements such as, the North Queensland Stadium and allied Priority Waterfront Development Area, the Elliot Springs development, and services associated with Singaporean military expenditure. As a result of these forecast events, market conditions have stabilised along with steadying sale volumes and median sale prices.”

As always, when we see land valuations released there will be confusion about the impact this will have on peoples rates bills. Declines (or increases) in land values will not, off course, necessarily impact on the level of rates payable since Councils will simply adjust up (or down) the cents in the dollar rate to maintain budgeted General Rate income. However, if individual land valuations are significantly different to the average change in a particular Council then owners can expect to see their relative rate burden either go up (where their land has appreciated more than average, or gone down less than average) or go down (where their land has depreciated more than the average decline, or appreciated less than the average rise). In either case it is highly unlikely that anyone will see their General Rates actually fall!

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