Gladstone effect pushes up Bororen land values almost 70%

Alistair WalshApril 10, 20120 min read

Bororen is a red-hot locality in Queensland, with official land values increasing 69.7% from 2010 to 2011, according to Queensland Valuer-General Neil Bray’s latest report.

He found Bororen’s median land values increased from $33,000 in October 2010 to $56,000 in October 2011.

Bray says growth in the Gladstone area is fuelled by recent development of the liquefied natural gas industry.

Bororen is 48 kilometres south of Gladstone and 140 kilometres south-east of Rockhampton. It is semi-rural with small acreages. 

Local agent Daryl Turner from Raine & Horne Calliope says while he doesn’t necessarily believe the figure is accurate he thinks the town has been doing well.

“I don’t think that’s true but everything around has increased,” he says.

He says although the town is 50 kilometres away from the nearest gas project it has been reaping the benefits.

“I’ve been selling real estate here for the last 39 years. There’s been a lot of growth in the last five years. It’s been massive,” he says.

Turner says people buying in Bororen are gas workers taking advantage of lower prices, and they tend to commute to Gladstone.

He expects growth to continue for the next five to 10 years with the building of gas projects.

“They won’t finish construction for at least another five years, they’re talking 10 years now,” Turner says.

“There are 25,000 more workers to come. It will keep doing well.”

Turner sold 50 Wadeleigh Street (pictured above) on January 6 for $220,000. RP Data reports the land value for the 1,131-square-metre block as $24,500. The house last traded in May 2007 for $175,000.

The 69% figure reported by Bray likely represents an understatement of official land values when they were last done.

Realestate.com.au reports median house prices to be $220,000, while the past three sales listed on RP Data are $255,000, $220,000 and $375,000.

Gladstone mayor Gail Sellers says she doesn’t anticipate a huge rise in rates despite the increase.

“I don’t expect they will go up quite a lot. I certainly do not. But we have to think about our requirements for revenue,” she says.

“Most councils are mindful of the amount that they increase but they have to look at the needs for the region and they have to take into account what is needed to run the organisation.”

The land tax threshold in Queensland is $600,000 for individuals and $350,000 for companies and trustees.

The Queensland Office of State Revenue calculates tax using the total value of all land owned, with some exemptions for properties used as a home or for farming.

 

 

 

Alistair Walsh

Deutsche Welle online reporter
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