Property values on the rocks in 1770, site of Captain Cook’s second landing

The Queensland town of 1770, the site of Captain Cook’s second landing in Australia, is the only locality in the area of boom Gladstone municaplity where land values decreased over the last year, according to Queensland’s valuer-general.

Land values in the ugly duckling locality decreased 20%, while neighbouring towns increased by an average of 19%, with Bororen, 40 kilometres east, increasing a stellar 70%.

Valuer-General Neil Bray found median land values decreased from $600,000 in October 2010 to $480,000 in October 2011.

The town has traditionally been a tourism hotspot, with tourists seeking the beaches, coral reefs and local wildlife. When Captain Cook landed here he shot and ate a pelican, afterwards saying it was the best bird he’d eaten since he left England.

A recent report by Colliers found as overseas trips by Australians soared, the Queensland hotel business suffered significantly.

Local agent James White remains upbeat about the future of 1770. So confident, in fact, that he just bought a $1 million house in the area.

“Tourism did die a bit during global financial crisis, but it has definitely picked up recently,” he says.

White says while property prices have decreased significantly over the last years, clearance rates have doubled.

“The prices here were very high. The land prices three or four years ago were $800,000 for a 600-square-metre vacant lot,” he says.

“It’s a reduction, but it’s part of the whole price adjustment.”

Sales in the area were previously driven by people buying holiday homes, but White has seen a shift to local buyers.

“We’re selling twice as much as three or four years ago, mostly to local buyers.”

He says “95% of the buyers are from the Gladstone region. It used to be around 60%.

“Local buyers are sustainable. They invest in the area and support local businesses. Southern buyers tend to come and go again.”

He recently sold 14 Endeavour Street for $498,000, a property he had previously sold in 2008 for $774,000.

He also recently sold 6 Endeavour Street for $850,000, a three-bedroom home that last traded for $535,000 in 2001. RP Data reports it was on the market for 174 days.

Realestate.com.au reports that the average sale price in 1770 is $850,000.

But he thinks prices will bounce back with the liquefied natural gas (LNG) and mining projects in the Gladstone area.

“All of the activity here comes from the confidence from the mining and LNG region. Ever since the five LNG plants were fully announced 14 months ago property sales have started soaring.”

“There are $91 billion worth of projects going on around here and more and more are announced all the time. In fact a nickel [project] was just announced last week.”

“That’s where I think this area will experience fantastic growth.”

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

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

Photograph by Pierre Pouliquin courtesy of Flickr.