Understanding land valuations

[Patrick Brown]

Hi everyone,

I just wanted to understand the working behind the Queensland land valuations done by the DNRM (Department of Natural Resources and Mines).

How can land values in a particular street in a suburb decrease by more than 10%, while the next street increases by 6%?

I live in North lakes. The next street to us is no different to ours. The land sizes are the same, the properties were built around the same time.

I don't get it.

Any comments/ advice will be highly appreciated.

Thanks,
Patrick

 

[KangaBanga]

could be that they have plans to build a road next to the street in the future, maybe sewerage or other utilities running through the backyard or maybe a few houses on the street have been sold below market value.

 

[pinkboy]

You could argue them up if you are selling, but there are some pitfalls if you're trying to 'increase' their 'value'; your rates will increase and it puts you closer to Land Tax threshold if it's an IP come to mind.

pinkboy.

 

[Angel]

Our block increased last year by more than 10%. It backs onto the north-south arterial, the bit not built yet, but is still in a ripper location anyway. We are walking distance to the colleges and the lakes.

 

[Colin Rice]

Could be a different valuer with different directions from his employer/bank/DNRM. Also could be using different comparable sales or just have a different opinion. Or could be just plain wrong!

Could also be an unknown caveat on the land effecting the perceived value.

Only true test is to put it on the market and see what it says? Even that test can vary due to marketing, a skilled or not so skilled REA and could also come across someone who is happy to pay a premium for emotional reasons.