South East Queensland New Land Market Update -Sales
The SEQ land market for the December quarter continued to perform strongly. Land sale volumes remain at near record levels, supported by a moderation in lot pricing.
The December result was underpinned by a strong Ipswich market. Land sale volumes increased by 18%, new record for the market. In addition, new land projects helped to increase overall land sales for this market.
The Moreton Bay market increased land sales by 13% and Brisbane lifted sales by 47%: helped along by the entry of some new land estates.
The Redland and Sunshine Coast markets dropped sales due in part to a lack of trading estates.
The cancellation rate is not showing any sign of demand weakness.
South East Queensland New Land Market Update –
Production of New Land
The number of land estates which posted sales for the quarter increased, underscoring newer estates and exiting estates offering new stock.
The number of new lots released this survey increased by 5%. The December production level was close to being a new record for the market. Production levels exceed sales by 10% for the quarter, continuing the trend of over supplying relative to quarterly demand. This has assisted with slowly building up the stock of lots ready for sales.
South East Queensland New Land Market Update – Prices
The median lot price for the current survey was $259,300. Prices fell on average by 0.7% for the quarter and represent no change from a year ago.
It would appear that the market as a whole has been keeping prices in check. The Gold Coast market increased its median lot price by 6% for the quarter in line with growing demand for housing across the local market. Some newer estates have entered the market at a higher price point in response to premium locations and or high branded product.
New land prices are still below the estimated lot price based on the long running relationship between land and established houses.
The level of closing stock for the quarter was rated as “healthy”.
South East Queensland New Land Market Outlook
The SEQ market continues to perform well. New projects across the Gold Coast have been attracting strong interest while the affordable master planned projects across Ipswich have been successful in attracting the entry level market. Price growth has moderated.
In summary, the SEQ market as a whole seems to be carefully navigating the back end of a very successful trading period. The diversity in product and location may be assisting with this process, regardless, the outlook is for sale volumes to slowly moderate while prices remain stable.
Research4: Colin Keane