South-East Queenland New Project Land Approaches $600 Per Sqm
SEQ New Project Land Approaches $600 Per Sqm
The average price for new land in South East Queensland (SEQ) is approaching $600/sqm for the first time with the amount of new project land coming to market unable to match demand from a surging population.
New research from property group Oliver Hume shows that while the number of sales in SEQ fell 33% in the three months to the end of March 2018 compared to the December quarter 2017, prices remained buoyant. Overall, the median retail price for project land currently sits at $242,000, up 6.1% from March quarter 2017.
With prices continuing to rise and the average lot size continuing to fall (now 416 sqm) the price per square metre of new land is now $581/sqm, up 14.3% since March 2017.
The research, contained in property group Oliver Hume’s latest Quarterly Market Report released today, showed demand for land remained strong across SEQ with population and economic growth rebounding.
Across all SEQ local government areas, Oliver Hume tracked over 1,160 sales, a 39.4% decrease on the previous quarter. The number of active projects in all SEQ municipalities in the March quarter rose slightly to 130.
Oliver Hume Queensland General Manager Matt Barr said that the South East Queensland property market had continued to strengthen as result of increasing demand from a growing population.
“After many years in the shadow of its southern counterparts, Queensland’s property fundamentals will see it continue to take more of the spotlight in 2018 and beyond,” he said.
“As more jobs appear and more residents appear to fill them, Queensland has sustained a steady growth in new home building approvals, with the number of new housing approvals outpacing attached dwelling approvals for the first time since early 2017.
“This growing population and resurgent economy is expected to have a positive impact on the property market for the foreseeable future. Only time will tell the scale of the impact, but there is little doubt about the direction.”
In the September quarter of 2017 Queensland experienced the highest level of net interstate migration of any state or territory in the country. The state’s population grew 1.7% over the year to September 2017, with over 81,270 residents bringing the number close to five million. Net interstate migration contributed around 19,320 new residents while in excess of 31,370 new residents migrated to Queensland from overseas.
Mr Barr said owner-occupiers remained the key buyer segment in the SEQ market, with only a slight decrease from 95% to 94% in the December and March Quarters. The proportion of first home buyers, though accounting for the majority of the market, also decreased from 78% to 72% in the December and March quarters respectively.
“Queensland recently welcomed its five millionth resident, despite a recent increase in the unemployment rate we expect the local economy to continue to power ahead with new jobs attracting workers… these workers will all need someowhere to live.” he said.
For more information visit www.oliverhume.com.au
ENDS: Media enquiries to Ben Ready on 0415 743 838.