It’s been a big year already for Ray White Special Projects Queensland.
Interest in land, particularly when targeted at the owner-occupier market, is skyrocketing as a new wave of buyers seeks strategic acquisitions in South-East Queensland, according to executive directors Mark Creevey and Tony Williams.
“Premiums are being achieved for sites that have approvals and 500-plus lots, especially when there’s access to infrastructure,” Mr Creevey says.
In Brisbane, suburbs between 2km and 10km from the CBD are considered aspirational for many buyers.
Increasingly, townhouses are appealing to buyers as an alternative to apartments, offering the opportunity to downsize into a more compact, quality residence that retains the features and outdoor space of a bigger freestanding house.
“A flight to quality is an imminent factor in the Brisbane residential property cycle,” Mr Creevey says.
“Well-designed boutique townhouse complexes will continue to perform exceptionally well in the city’s sought-after middle-ring.
“Investors and developers have identified this trend and are actively targeting middle-ring suburbs for key land opportunities.”
Mr Williams says there is still plenty of room for improvement in the market, which investors were increasingly seeing as an excellent alternative to the southern capital cities.
“Interstate migration is increasing and many infrastructure and landmark projects are either under way or planned,” he says.
“This means demand for residential product in both the owner-occupier and investor markets is expected to strengthen further in 2018 with strong competition between local and interstate or overseas groups for approved residential development sites.”
The recently released South-East Queensland land reports, which the team prepares annually, show lot registrations of 15,242 are at the highest level for 10 years.
Lot sales have increased 14 per cent annually from 2013, although they are still currently 17.6 per cent lower than the high of 13,786 seen in 2008.
Lot approvals have risen 30 per cent since 2013 and shown average annual growth of 3.5 per cent in the past 10 years.
“The South-East Queensland region saw a 5.5 per cent increase in median vacant land prices for the 2017 financial year, with the median vacant land price now at an all-time high of $265,000,” Mr Creevey says.
The Brisbane local government area has the highest median land price with $405,000 and the highest value per square metre at $880 —an annual increase of 9.2 per cent over the past 10 years.
Median vacant land prices in the Brisbane area rose 8 per cent over the past year, and the median price of house-and-land packages increased by 10 per cent.
The Gold Coast local government area remains a key growth hub, recording a 22 per cent rise in total projects in 12 months.
Main photo: An approved 18-lot residential subdivision site for sale in Bridgeman Downs. View the listing