Land rates in Southeast Queensland are continuing their strong run. Values have increased for a third quarter consistently. The median price of land in the area in December had climbed to $234,000 from $231,000, where it ended the quarter before.
Southeast Queensland covers more than 22,000 km. Interestingly, when settlers first came to Queensland, the Southeast region was the first area they explored and settled in.
Sydney apart, the price of land in Southeast Queensland is more than any other major Australian centre. The availability of land is most in the region of Tweed and the Gold Coast. Redland Bay and Brisbane have the lowest stock of free land. Experts have said that the land market in Queensland will see consistent improvement. Owing to a high demand for land which is in perennial short supply, the fourth quarter is also likely to see a marginal increase.
The Australian Bureau of Statistics has come up with projections that say the population in Queensland will double to nearly 8.7 million by the year 2056, and more than half of these people would have settled in the capital, Brisbane. The strong growth in population can be attributed to strong immigration.
More than 100,000 people immigrate to Queensland every year. It is estimated that to cope up with the increasing population, Queensland would have to build more than 470,000 dwellings in the coming ten years.
KPMG has predicted that Brisbane will have 43% more dwellings in 2031 than in 2001, while the Sunshine Coast will have 63% more, and the Gold Coast will have 56% more.
More than half of the land available can be found in Tweed and the Gold Coast area. In the December quarter, of the eight new projects that were launched in Southeast Queensland, four were located on the Gold Coast.
The market has been struggling since the global financial crisis and these developments suggest resurgence is in the offing.
The spotlight now rests on Brisbane. The city has 9% land stock and it is leading Redland Bay’s stock of 3%. Land in and around Bayside and the city is drying up. This may suggest that these markets will grow strongly when the real estate market strengthens again.
While the land median in the southeast is higher if you compare it to other markets, nearly 1/3rd of the land lots here are still in the affordable bracket. This can be attributed to small lots, especially in areas where large land chunks are rare.