Demand for residential land subdivision sites within SEQ’s key growth corridors has remained high in 2018 despite a slowdown in sales volumes for residential land throughout the same period, according to Ray White Special Projects Queensland.
According to Ray White’s latest SEQ Vacant Land Report* for the 2017/18 financial year, land sales volumes have softened from the previous period.
Significantly increased scrutiny on customers’ living expenses from the major lenders’ adherence to pressures from APRA has been the primary reason for the reduction in volumes.
Despite the slow down in land sales volumes, the 2017/2018 land report identified a number of key positives for the region with a steady increase in median vacant land pricing for the period, recording a 3.66 per cent increase throughout SEQ over the last 12 months, with the Gold Coast recording the strongest increase at 9.92 per cent.
In line with this strengthening, almost all the major SEQ localities have also experienced strong growth in house and land package values with Redland City and Brisbane recording the strongest rates of growth at 12.13 per cent and 7.18 per cent respectively.
Ray White Special Projects Queensland Directors Mark Creevey, Tony Williams and Matthew Fritzsche said Logan and Brisbane accounted for the highest volume of lots approved across the region.
“Across Queensland there were a total of 15,898 lots approved in the 2017/18 financial year, with Logan and Brisbane accounting for the highest volume of lots approved, being 4,091 and 3,078 respectively,” Mr Creevey said.
“While Logan and Brisbane have recorded high volumes of approvals, we anticipate that areas such as Moreton Bay and Redlands may start to see upward movement in land prices throughout 2019 and beyond due to land supply pressures with a number of key precincts significantly delayed due to planning and infrastructure deficiencies,” Mr Williams said.
Interest from new entrants into the marketplace, particularly groups from interstate, has continued to strengthen in 2018 as the southern markets enter into a period of market correction.
“Looking forward to 2019 we anticipate that demand for land subdivision sites will continue to remain strong, particularly for sites with approvals, access to infrastructure and located in areas with proven demand for the end product,” Mr Fritzsche said.
“Factors including relative affordability when compared to the southern states and steadily increasing net interstate migration figures are also expected to contribute towards this demand.”
*Ray White’s Commercial Research – SEQ Vacant Land – 2017/18 Financial Year Report.
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