The Gold Coast has achieved the highest vacant land value rate on record, according to a new data analysis by Ray White Commercial.
The Between the Lines Gold Coast LGA Vacant Land Reportshows the region’s residential land market has recorded quality results in the year to June 2017, with median values for both vacant land and house and land packages showing strong upward momentum.
“The median vacant land value continued its upward trajectory positively in the year to June 2017, growing 6.56 per cent to $260,000,” Ray White Commercial head of research Vanessa Rader says.
“This represents a median land value of $601 per square metre, which is the highest rate on record.
“In general, smaller lot sizes are being brought to market and this has contributed to prices firming over the past 12 months.”
DA approvals, which fell after 2011 before starting to recover in the past three years, increased by 8.5 per cent to 2324 — the highest number since 2011. There were 126 projects approved, an increase of 22.3 per cent on the previous year’s total of 103.
As well as the record median land value, the rate per square metre has increased on average 5.18 per cent per year over the last decade.
Ray White Commercial Special Projects Queensland associate director Dax Roep says overall, the data highlights the continuing strength of the vacant land market.
House-and-land package sales have increased their median values for the past four years, reaching $494,000 in the year to June 2017.
“The number of packages sold has reduced this year from 354 in the June 2016 period to the current level of 294 — the lowest in three years,” Mr Roep says.
“However, the growth in values does not mirror this dampened demand.”
The report also shows there has been a reduction in investment activity. After four consecutive years of increases, the number of lot sales during the year to June 2017 has fallen by 30.91 per cent.
Mr Roep says a diminishing supply of greenacre land suitable for subdivision is expected to continue pushing up Gold Coast land prices.
“We anticipate this will lead to increased demand for residential product, both in the owner-occupier and investor markets, through 2018,” he says.
“With 3195ha of land suitable for residential development with the potential to deliver close to 42,000 dwellings, the Gold Coast City region is an important growth corridor for South-East Queensland.”