This week I have included two tables about the south east Queensland vacant land market.
Table 1: Residential land markets, select SEQ local authorities
| Local authority
area |
Vacant land sales | Median
value |
Median lot size (m2) | Average price $/m2 |
| Brisbane | 1,950 | $410,000 | 407 | $1,007 |
| Gold Coast | 1,520 | $290,000 | 429 | $676 |
| Ipswich | 1,750 | $210,000 | 420 | $500 |
| Logan | 2,220 | $229,000 | 424 | $540 |
| Moreton Bay | 2,430 | $274,000 | 404 | $678 |
| Noosa | 125 | $350,000 | 671 | $522 |
| Redland* | 380 | $275,000 | 425 | $647 |
| Sunshine Coast | 1,890 | $280,000 | 400 | $700 |
| Matusik Ready Reckoner Reports, table 5. Financial 2020. * Excludes postcode 4184. | ||||
Table 2: Residential land markets, change over past decade
| Local authority
area |
Median
value |
Median lot size (m2) | Average price $/m2 |
| Brisbane | 38% | -20% | 71% |
| Gold Coast | 20% | -36% | 88% |
| Ipswich | 18% | -29% | 65% |
| Logan | 6% | -30% | 52% |
| Moreton Bay | 30% | -27% | 79% |
| Noosa | 53% | -2% | 57% |
| Redland* | 0% | -36% | 55% |
| Sunshine Coast | 12% | -38% | 80% |
| Matusik Ready Reckoner Reports, table 5. Total change between June 2010 and June 2020.
* Excludes postcode 4184. |
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Some observations
Land sales are now increasing across south east Queensland. In some cases, this increase is rapid. Much of this momentum is due to the recent HomeBuilder incentive. Demand is being brought forward.
Prior to this covid induced builder incentive, land sales were falling across many south east Queensland LGAs. These falls were most marked in areas struggling with land supply. This lack of subdividable land supply is the most acute on the Gold Coast, in Brisbane, Redlands and in Moreton Bay.
When casting a wider net, Toowoomba too is facing a lack of new subdividable land.
In all instances the local authorities – in cahoots with the Queensland state government – argue that there are adequate broad hectare subdivision supplies, but ground truthing finds the opposite.
The lack of land supply is evidenced by the rapid increase in the price per square metre of land sold across south east Queensland over the last decade. Revisit table 2.
Land is becoming less affordable. This is part of the reason behind the fall in urban allotment sizes. Again, revisit table 2.
Table 1 shows just how small lot sizes are these days across south east Queensland.
It amazes me that local authorities – and especially their planning departments – weigh in on land supply, often making the development approval process difficult, if not impossible, on the basis that they think there is enough housing supply.
Managing land supply is really the developer’s realm. It involves substantial risk. And by the way more supply typically means more competition resulting in keener allotment, and house and land package, prices.
One would think that the Queensland authorities would be increasing land supply -and given the current economic environment – that this task would have a high priority.
To find out more about the local land markets get a Matusik Ready Reckoner Report – new, improved and just $55 per report or $330 if you buy all eight SEQld reports, saving you 25%.