The cost of land has jumped by as much as $120,000 in a year – up 21.2 per cent in one area where it now costs as much as the median home did just two years ago.
Brisbane led the charge after rising 8.7 per cent in the September quarter, pushing the median price of a block of land to $685,000 in the municipality – which, shockingly, is $3,000 more than what an established home cost there during the pandemic in June 2022.
The second biggest annual surge in price came out of affordability hotspot Ipswich where the median block rose 15.4 per cent or by $48,000 to hit $360,000, with the third fastest pace set by Moreton Bay, where prices rose by 10.1pc or $38,000 to $415,500.
The cheapest blocks of land in South East Queensland are at Logan in Brisbane’s south, where one in every three SEQ sales is now occurring – with the median price at $350,000 after a rise of 9.7pc or $31,000 across the year. Logan took over as most affordable municipality six months ago when its prices dropped below that of Ipswich for the first time.
The Gold Coast had the second highest SEQ land price at $619,000, up 7.8pc annually or $45,000, while Redlands has now passed the half a million dollar mark, hitting hit $501,000 in September quarter after annual growth of 9.6pc or $44,000.
The silver lining for buyers is that the pick-up in price has seen developers rev up land releases across South East Queensland, with huge double digit sales surges notched in Logan (+32.2 per cent), Moreton Bay (+27.1 per cent) and Ipswich (26.9 per cent) in the September quarter.
Oliver Hume Real Estate Group CEO Julian Coppini – whose business manages sales on behalf of leading developers such as Villawood Properties, HB Land and ID Land – said South East Queensland was one of the strongest land markets in the country.
“After a very long period of extreme shortages, the land supply is slowly returning to more historic levels, and sales rates are more sustainable,” he said.
The median block price for SEQ is now $385,000, up 12.7pc annually or by $43,450.
CFMG Capital Group GM Andrew Thomson whose firm has successfully completed over 700 residential lots in the Logan area since 2018 said “it’s quickened depending on where you are”.
“The market is as strong as it’s ever been in terms of demand and supply, even back in the heady days of 2021 during the Covid boom. We’re seeing similar numbers now,” he said.
Oliver Hume’s Queensland GM Dan Ross expects demand to rise from first home buyers to rise with the expected full stamp duty exemption from the Crisafulli government for new homes. The measure would save a first homebuyer building or buying a new $800,000 house around $29,000 in stamp duty charges.
“The last couple of years have been difficult for many first-home buyers,” Mr Ross said. “We expect conditions for this segment to be much better over the next 12 months. There is still a bit of uncertainty for buyers around interest rates and building prices, but these issues are slowly dissipating.”
Source: Cost of land rises by as much as $120,000 in a year, Sophie Foster for The Courier Mail