675,000 Queensland properties to be issued with updated land valuations

Skyrocketing migration and increased demand has been linked to the substantial land value increase on more than 675,000 homes across Queensland. SUBURB BREAKDOWN

Hundreds of thousands of homeowners are at risk of a hefty rate rise and tax bill increase after land values across some of southeast Queensland’s most populated areas jumped by as much as 36 per cent.

Skyrocketing migration and increased demand for land has been linked to the substantial land value increase across the Gold Coast, Moreton Bay, and Sunshine Coast council areas.

A total of 675,000 properties across 20 local government areas will be issued an updated land valuation as part of the 2024 cycle - though more than 500,000 of those properties are spread across just five councils.

Land value on the Gold Coast has risen 25 per cent on average. In Moreton Bay and the Sunshine Coast, the average value of land has risen 36 per cent since the previous valuation in 2021.

In Redland City land values jumped 31 per cent amid strong migration, limited new land supply and the area having more affordable land than in the bordering Brisbane City Council area according to the Valuer-General.

A strong demand for grazing properties in the Somerset Regional Council area - which covers areas like Esk, Kilcoy and Lowood - and interstate buyers and investors being attracted by lower prices compared to Ipswich and Brisbane had caused a spike in land values of 54 per cent on average.

Valuer-General Laura Dietrich said ongoing strong population growth in the southeast from interstate and overseas had led to increased demand for land.

“There is also lots of infrastructure being built particularly in the Moreton Bay and Gold Coast City LGAs which is impacting property prices,” she said.

“Rates are set by councils when they determine annual budgets, but it’s important to stress, valuations are not the only data considered by a council when deciding rates.

“Local governments have wide ranging powers to manage rates, including differential rating, setting a minimum rate, rate capping and the averaging of valuations before rates are assessed.”

But the value of land - along with its main use - is a key factor in calculating rates bills and land tax.

The new land valuations will take effect on June 30, 2024 and according to the Valuer-General reflect property market changes since the last valuation cycle.

Resources Minister Scott Stewart is due to reveal the government’s next move on proposed changes to valuation laws. Picture: Glenn Campbell

The Valuer-General’s decision comes the same week Resources Minister Scott Stewart is due to reveal the government’s next move on controversial proposed changes to valuation laws the industry has warned could lead to higher land tax and council rates.

Property sector heavyweights and the state’s leading valuers have warned the proposed changes - which were taken back to the drawing board amid an outcry - would fundamentally change the complex mathematics that determines the worth of land.

It’s understood a number of stakeholders are due to meet with representatives from the Minister’s office on Wednesday, though industry insiders have revealed they haven’t yet seen a draft of the government’s intended changes.

His response must be published by Friday.

Originally published as 675,000 Queensland properties to be issued with updated land valuations