While I’m generally positive about the Queensland economy, I remain concerned about the short-term prospects of Cairns and the Gold Coast. Loose Change has coverage of the bad news on land valuations in the Cairns region contained in today’s report from the Queensland Valuer-General (Snapshot of the 2012 valuation). The news is just as bad for the Gold Coast, particularly for Surfers Paradise, with the Valuer-General noting (p. 6):
Gold Coast land values have continued to decline following the global financial crisis in 2008. Since then peak values in the central Surfers Paradise area have declined by approximately 50 per cent. The decline in values this year is more widespread across the Gold Coast than in previous annual valuations.
Despite the bad news, I’m confident Gold Coast land values will start to recover sometime in the next couple of years, as the region’s long-term prospects are good, given its excellent climate and lifestyle and the upcoming Commonwealth Games.