Activity in South-East Queensland’s (SEQ) residential land market has continued its post global financial crisis (GFC) recovery with a strong rise in lot registrations and sales, according to Ray White Commercial.
Ray White Commercial Head of Research, Vanessa Rader, said the residential land market had experienced a significant pick up in registrations with a total increase of 62 per cent across the regions over the 12 months to September, 2014.
“With registrations increasing so too have volume of lot sales, with sales across South East Queensland totalling 8,971 during the year to September 2014, which represents an increase of 27 per cent over the 12 months,” Ms Rader said.
“The Gold Coast, Logan and Sunshine Coast have experienced the most significant growth in lot sales volumes in SEQ over the 12 months to September 2014, increasing by 98 per cent, 57 per cent and 35 per cent respectively, although this is coming off a low base during the GFC.”
Ray White Special Projects (Qld) Directors Mark Creevey and Tony Williams, who specialise in the marketing and sale of development sites, said the general increase in sales activity since late 2013 was great news for sellers.
“We are experiencing strong demand particularly for product with approvals in place and there’s definitely renewed confidence in the market,” Mr Creevey said.
Mr Williams said in general there are a small number of projects with 50 plus allotments.
“I think this is a reflection of the heavily fragmented nature of land supply in the greenfield corridors of SEQ,” he said.
“The diminishing supply of available land within Brisbane City Council has seen higher growth in medium density unit and townhouse markets.”
Ms Rader said Ipswich City was the most active region in SEQ with respect to development applications and approvals, due to a combination of factors including the availability of greenfield development suitable land as well as improved market appetite for completed house and land product.
She said Moreton Bay Regional Council area continues to be the most active region in terms of new lot sales, with 2563 transactions in the year to September 2014 period.
“This is ahead of all other locations in Queensland, including Brisbane which yielded 2,098 transactions,” she said. Ms Rader said lot approvals across the Sunshine Coast have rebounded in the year to September 2014 to 1,195 lots, up from 701 lots through the 2013 period.
“This represents 66 projects across the region with five large scale projects (50 plus lots) contributing 944 lots,” she said.
Ms Rader said Redland City has seen a substantial jump of 247 per cent in vacant land approvals for the year ended September 2014.