Property price shock on Southern Downs
WARWICK officially has a Golden Mile where land values have rocketed more than 30% in one street but not everyone is thrilled about it.
Residential land values have generally remained unchanged in Warwick and Stanthorpe where the respective median values are $95,000 and $83,000, according to the Valuer-General's 2017 property market report.
But Hawker Rd in Glennie Heights has bucked the trend with some house blocks going up up a whopping 33% since the last report two years ago.
Norman Madsen, 84, said he was stunned to discover his home block had increased in value from $106,000 to $141,000 in the two years to October 2016 after no price movement in several years.
"It's good to see the value of your land go up rather than down but I can't understand where the massive increase has come from as I don't believe there were any sales in the street since the last valuation,” Mr Madsen said.
The pensioner and wife Verlie bought the four-bedroom brick home on almost 1400sq m in 1983 for $80,000 and Mr Madsen said he was concerned the revised valuation would bump up their rates bill significantly.
"The report shows the median price for residential land on the Southern Downs increased by 2.8% over the two years so I can't see why my land value went up so much,” he said.
"There were several blocks of land close to Hawker Rd where values didn't change.”
Mr Madsen doesn't own a computer or a mobile phone so will need to call on family to help him with the valuation objection process.
The house blocks in Hawker Rd that have increased by more than 30% are opposite the Warwick Golf Club and feature grand contemporary homes and neat, humble bungalows.
Mr Madsen said he was unsure what the home was now worth the couple didn't plan to sell.
Southern Downs Realty agent Brent Bowles urged Mr and Mrs Madsen to embrace the price jump.
"It only takes a few unusual sales to push up land values and make prices look disproportionate and some streets around Hawker Rd have had some big sales in recent years so that may be the reason,” Mr Bowles said.
"Yes, it may make rates go up in that area but the Valuer-General's report is an official valuation and an indication of what your property is worth to potential buyers so I'd be pretty happy with it.”
Mr Bowles said Hawker Rd was considered a prestige street and other some other precincts in the city lost value over the same period, according to the report.