Oversupply of property stock to blame for land value drop

first_imgMore from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020Eight of Townsville’s northern suburbs recorded a drop in median land value caused by a lack of sales and subsequent oversupply.While the valuation may come as a shock to sellers, Real Estate Institute of Queensland Townsville Zone Chair, Damien Keyes said the result was unsurprising and a direct result of the city’s ongoing economic downturn.“The northern corridor has had an oversupply of stock for some time now so I can’t really say I’m surprised,” he said.“At the moments it is also cheaper to buy a quality existing home with a pool for a lower price than what it would cost to build.“I also think that Yabulu has had somewhat of an impact on the area although most would have already bolted before the assessment was undertaken but again, it does take away people who would otherwise live in those areas.”Exclusive Core Logic figures released to the Townsville Bulletin this week, show a massive 18.68 per cent drop in annual property sales across the wider Townsville region.A total of 3409 properties were sold in 2014 and 3244 in 2015, 637 and 472 respectively more than last year.The Townsville’s suburbs with a drop in land values accounted for only 17.3 per cent of last year’s property sales despite comprising of one of the region’s largest development areas. Townsville from above. Photo credit: Megan MacKinnonPROPERTY experts say an oversupply of land and housing stock is to blame for a massive 4.65 per cent drop in land value across Townsville’s northern suburbs.Of the 10 Townsville suburbs named in the Valuer-General’s annual land valuation report as having reported a drop in value, eight were located in the city’s northern corridor including Burdell, Rollingstone, Shaw, Mount Low, Deeragun, Bushland Beach, Toomulla and Bohle Plains.Land valuation decline ranged from a moderate 0.8 in Bohle Plains to 10.2 in Burdell which includes prominent development area, North Shore.last_img

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