Lockout laws could hit property values
Commercial and retail property owners are worried about the impact that Queensland’s new lockout laws will have on land values.
Their concerns follow the release of a report by the New South Wales government last week showing that lockout laws had hurt commercial and retail property prices in places like Potts Point and King’s Cross by as much 20 per cent.
Scott Hutchinson from Hutchinson Builders, who owns the Triffid music venue in Fortitude Valley is warning that the laws will devastate business and will force venues to close down.
He cited one example of a music venue that was now turning itself into a strip club to stay afloat.
The small clubs are working out how they are going to cope and some of them are already changing hands," Mr Hutchinson told the Australian Financial Review.
"I am already offering them finance to make sure they don't turn into strip clubs."
He said the laws, which had just been passed by Queensland parliament, had been introduced by people who were out of touch.
“The people making the laws are just old people, don't go out and now they are telling the younger people when to go home and how to enjoy themselves," Mr Hutchinson said.
According to the New South Wales report, the lockout had lowered the value of commercial and retail property but on the other hand, it had increased the value of residential land by making properties more attractive to residential owner-occupiers and investors.
The problem with Fortitude Valley is that the gentrification is not that widespread and there is simply not enough demand in Brisbane to encourage more residential development in the area.
In any case, music venue operators expect the lockout laws will destroy the vibrancy of the area.
"Some developers are buying the music places for residential developments and that's sad because it will just become an apartment nightmare," Mr Hutchinson said.
by Leon Gettler, May 26th 2016
