QLD Houses in suburbs with lots of smallscale devt

I was looking at the online view of LMR sites in Brisbane as doing a buy-hold-develop-sell/hold is possible.
Some suburbs are riddled with LMR, while others have none.
Being new to developments, what effect does this have on the suburb values, CG and population?

For instance if most are still older houses on biggish blocks, would the values and CG be similar to other non-LMR suburbs, more or less?
Once townhouses and smallscale development really gets going, are the remaining house sites going to be valued up or down?
Perhaps it's "why buy an old house when you could buy a new townhouse", or is it people still looking for land rather than new-ness?

I haven't made this Qld specific as I'd like to hear about anywhere else where this has occured.