Land values stabilise as property market picks up
RESIDENTIAL land values in the Douglas region have generally stabilised following several years of decline.
THE Valuer-General’s 2013 Property Market Report, on which rates movements are partly based, was released yesterday.
Values have fallen in the past 12 months where the supply of land is still greater than demand such as Wonga Beach and Thornton Beach that have both dropped by 9.6 per cent, while there have been some market corrections north of the Daintree River.
But for the rest of the region, valuations have remained the same as those in 2012.
The commercial, industrial and multi-unit markets have also experienced a levelling in the market in Port Douglas.
Values in areas such as Cape Tribuation, prompted by low visitor numbers and difficult trading conditions that have affected the viability of some commercial property, have been reduced.
Raine and Horne principal David Cotton said that while the property market is starting to turn, the valuations don’t come as a huge surprise.
‘‘ However based on activity in 2012 I thought land values may have dropped by about 5 percent,’’ Mr Cotton said.
‘‘There has been increased activity over the past six months, although that has been price driven.’’
Ray White principal Alan Crossman believes the valuations are a reasonable reflection of the curent situation in the area.
‘‘But I believe the land valuations are lagging a little behind the current situation, with real estate coming back into fashion,’’ Mr Crossman said.
Both Mr Cotton and Mr Crossman agree the resurgance of the tourism market will further enhance the recovery in the housing market.