The HomeBuilder package has helped generate a lot more buyer inquiry for vacant land and new house/land packages.
The month of June was said to be hectic. It is likely that the interest will remain high for the rest of calendar 2020 as well.
What is yet to be seen is if the inquiry and associated holding deposits turn into contracts.
I suspect that there will be a high fallout rate as lenders look hard to each borrower’s employment status, future earning capacity, lifestyle spending and debt profile.
That said, this week is the first post of a south east Queensland land market trilogy.
My last three part series on jobs was quite popular. So here we go again.
Two tables this week.
Table 1 looks at the suburban distribution of new land development across SEQ and table 2 looks at suburban vacant land and house/land prices and sales.
Table 1: Major SEQ municipalities: Urban allotment development distribution
|Municipality + suburb||Total lot registrations*||Market share|
|North Lakes-Mango Hill||208||10%||2%|
|Upper Kedron-Ferny Grove||140||6%||1%|
|Boronia Heights-Park Ridge||827||42%||8%|
|Chambers Flat-Logan Reserve||224||11%||2%|
|Matusik + Queensland Government. * Urban residential allotment registrations between 60m2 to <2,500m2 on a standard format plan intended for detached dwellings. Year ending March 2020.|
Table 2: Major SEQ municipalities: House + land package & vacant land sales
|Municipality + suburb||House + land package sales||Vacant land sales|
|North Lakes-Mango Hill||31||$525,000||160||$292,500||$760|
|Upper Kedron-Ferny Grove||6||n.a.||63||$410,000||$874|
|Boronia Heights-Park Ridge||92||$453,500||325||$232,500||$544|
|Chambers Flat-Logan Reserve||28||$450,000||180||$215,000||$546|
|Matusik, Price Finder + Queensland Government. Matusik estimates. A new house and land package are defined as a detached house dwelling on a newly registered block of land between 140m2 and 2,500m2. Vacant urban land sold between 140m2 and 2,500m2. Year ending March 2020.|
Matusik, Price Finder + Queensland Government. Matusik estimates. A new house and land package are defined as a detached house dwelling on a newly registered block of land between 140m2 and 2,500m2. Vacant urban land sold between 140m2 and 2,500m2. Year ending March 2020.
Table 1 tells me: that just under 70% of the new urban allotment registrations across SEQ are held in just 30 suburbs (SLA2 ABS definitions). There are some 320 such SLA2 areas across SEQ.
These suburbs also dominate land development within their respective municipal areas. That market share ranges from 43% in Brisbane to 83% in Ipswich.
New land subdivision activity across SEQ is now limited to a few development corridors.
Table 2 shows: that there is a wide range of price points across the SEQ land market with the most expensive land on a $/m2 basis selling in Rochedale in Brisbane.
Yet vacant land can still be bought for under $500/m2 in several outer SEQ suburbs including Nambour, Caboolture West, Morayfield East, Collingwood-Redbank, Redbank Plains and Bellbird Park.