Toowoomba land values increase 12.6 per cent in latest Queensland Valuer-General report

With land values in Toowoomba increasing by 12.6 per cent, Toowomba Regional Council has revealed when any potential rate rise would be passed on to landowners.

Council will “consider” using legislative tools at its disposal to minimise the impacts of significant land valuation increases when it delivers its budget in June.

The state government’s land valuations have been released, with the Valuer-General increasing values in the Toowoomba local government area by 12.6 per cent.

The previous valuation, which was released in 2021, indicated the total value of land in the Toowoomba LGA was $17,663,256,369, with that figure now at $19,886,336,617 across 68,529 properties.

Some of the suburbs and regions to record the biggest increase in land values include East Toowoomba (18.3 per cent), Hampton (25 per cent), Kingsthorpe (40 per cent), Mount Lofty (18 per cent), Pechey (20.2 per cent) and Rangeville (17.5 per cent).

“Generally, there have been minor to moderate increases in residential land values within Toowoomba City, with the exception of Harlaxton which has experienced no change and East Toowoomba where there have been moderate increases,” the Valuer-General report for the Toowoomba LGA states.

“Throughout the Toowoomba region, there has been variations in values within the small towns ranging from significant reductions in Cecil Plains, minor reductions in Millmerran, no change in Pittsworth, minor increases in Highfields and Crows Nest, and significant increase in Kingsthorpe.

“The median value in East Toowoomba has increased 18.3 per cent from $300,000 to $355,000.”

The land valuations, which were issued on March 21, come into effect from June 30, 2022.

ON THE UP: Median land values in East Toowoomba have risen by 18.3 per cent, one of the highest increases in the city. Photo: LJ Hooker Toowoomba.

Toowoomba Regional Council Deputy Mayor and business strategy committee chair Geoff McDonald said council appreciated that residents have faced a number of challenges over the past two years, and was “mindful of the impact any potential rate rise would have” in its June budget.

Mr McDonald said council was able to use legislative tools to manage the impact of state government land valuations, such as using an average of valuations over three years, rate capping and differential general rates.

“In preparation of the 2022/23 annual budget, council will consider using these legislative tools to minimise the effects of significant land valuation increases,” Mr McDonald said.

LJ Hooker Toowoomba licensee and principal Mike Stewart said the rise in land value wouldn’t have much of an impact on renters, and home and land owners might face an increase in rates.

The rising land values were reflective of continued strong growth in the Toowoomba real estate market.

LJ Hooker Toowoomba Partner CEO Mike Stewart said his team were in discussion with three national food giants to fill the space next to the new Mobil service centre in Plainland.

“On a day-to-day level the land values don’t have much of an effect, but they do reflect the fact that land values have risen quite dramatically in the past four to five years,” he said.

“The information used to calculate land value includes the sale value of other property, but it’s an aggregate across all types of property, but in a general sense they do reflect the underlying increase in value of property in Toowoomba.”

Mr Stewart said rental vacancy rates remained close to zero, with asking rent about 10 per cent higher now compared to 12 months ago.

“Demand for vacant land is through the roof, and there isn’t much available and not a lot coming in the short term so that all feeds into a stronger real estate market,” he said.

“Unless we bring more vacant land to market in large quantities that’s probably not going to change.”

Queensland’s Valuer-General Wally Kearnan said the valuations, which reflect land values on October 1, 2021, were the result of extensive market research by the State Valuation Service team.

“Everybody knows that demand has gone up in the property sector,” he said.

“When you combine that with record low interest rates its driven up land values across the board.”

To contact the office of the Valuer-General call 1300 664 217.