May 2015 – South East Queensland Residential Market

13 May, 2015 / Vanessa Rader and Mark Creevey

The South East Queensland land market has rebounded in the year to September 2014 with a strong increase in lot registrations and sales numbers. Total lot registration across the region increased 62.37% over the last 12 months.

Sunshine Coast witnessed the greatest increase of 165.29% over the year followed by Redland and Gold Coast increasing lots by 120.63% and 89.38% respectively. Ipswich resulted in more limited growth in lot registrations, however the lot approval rate in this location has been high over the past twelve months which will likely result in an uptick in registrations over the next 6 to 12 months.

With registrations increasing so too have volume of lot sales. Sales across South East Queensland have totalled 8,971 during the year to September 2014 which represents an increase of 27.28% over the 12 month period. While the number of lot sales have increased each year since 2011 this has been off a historically low base with the current result still well behind the volumes achieved prior to 2011. Mirroring the rise in supply, Gold Coast achieved the highest increase in lot sales up 97.68% over the past 12 months, followed by Logan and Sunshine Coast both up 57.30% and 35.49% respectively. Brisbane continues to build on the sizeable volume of vacant land transactions growing 2.74% yet Ipswich has seen a reduction in number of sales falling −9.37% to just 1,064 transactions.

As land availability continues to decline, the volume of larger estates so too will diminish. Brisbane is the prime example of limited greenfield opportunities to cater for large estates, the bulk of development in these regions are within the 21–50 lot size range and represent over 600 approved lots. In contrast there are just three projects greater than 50 lots compared to just 195 in the larger size range representing just 10.51% of the total lots approved. Small infill projects dominate this location with 723 lots represented across 437 sub 10 lot projects. Gold Coast, Logan, Redland and Sunshine Coast all have shown limited greater than 50 lot projects somewhat mirroring (albeit at a lesser rate) Brisbane. The bulk of development across a greater volume of smaller projects, in particular the sub six lot size range highlights an increase in infill and brownfill development. Ipswich however, has an abundance of developable land hence the high volumes of larger land offerings; this region represents over 5,500 approved lots in 50+ lot subdivisions compared to the remaining 627 lots across 81 smaller projects. Moreton Bay is also another region which has a high proportion of large estates, with 14 projects over 50 lots representing 1,321 lots or 67.88% of the total approved lots.

Download the full version of May 2015 - South East Queensland Residential Market