The Redlands housing market is on the rise as Wellington Point and Ormiston received the highest increases in land valuations this week, with hikes up to 21 per cent.
The two suburbs reflect the shock spike in median values from the past year, with a city-wide increase of 14.6 per cent.
Mainland median values have more than doubled in size from 9.9 to 21.4 per cent whilst most bay island values have remained unchanged.
Commercial and industrial areas, units and rural properties have all experienced the upturn of land value:
- Residential land has risen from $295,000 to $355,000 in Ormiston
- Point Lookout has the highest median land value of $435,000
- Mount Cotton’s value has increased to $235,000
- Coochiemudlo Island’s median land increased to $122,000
Birkdale land valuations rose 16.7 per cent while Victoria Point, Thornlands, Capalaba and Redland Bay faced increases of more than 15 per cent.
The Valuer-General Department reported that this year alone, there were 876 additional residential properties included in the city’s increased valuations.
Valuer-General Neil Bray sent notices to 59,546 properties showing the elevated valuations calculated in October last year.
He explains the valuations will take effect on June 30.
“It is important that landowners realise that valuation notices are not rate notices,” he says.
“Rates are set by local governments under the Local Government Act 2009 and the setting of rates is based on a number of factors – valuations are only one of those factors.”
While Redlands remains an owner-occupier market, the southern end of the bay holds great potential for future investors.
Local property expert from Johnson Real Estate Andrew Trimm says that with the influx of people wanting to live near the bay, there shouldn’t be an over-supply problem.
“The Redlands is certainly seeing some strong activity at the moment, so a lot more than we’ve seen in the past few years,” Mr Trimm says.
“With the growth and the shoreline development being beautifully done, it’ll be a lovely place to live and it can only help the value of properties in the Redlands.”
“I think the supply is meeting the demand at this stage so it won’t push prices down that’s for sure.”
It’s now up to each local council across the regions to decide how they will view the re-evaluations and the impact this could have on property and industry values.