Lot Prices Rise in Queensland’s South-EastMay 18, 2017
Recent analysis by real estate group Oliver Hume, has revealed South-East Queensland has experienced an 80 percent surge in residential lot prices over the past decade. The lot prices have risen from $184,000 to $244,000 between 2006-2016. When shrinking lot sizes are taken into account (466 square metres down from 632 square metres), the price of land jumps from $291 to $523 per square metre.
As it stands today, the most distinguishable features of the East Coast land market are the rising lot prices paired with shrinking lot sizes. The price shift has prompted developers to create smaller lots, offering a more affordable alternative to those wishing to purchase a house and land product. The introduction of townhouses and apartments are also more affordable alternatives to larger blocks of land.
The move to introduce townhouses and apartments into the suburbs has helped enable this alternative.
The rise of the market in the Sunshine Coast, Gold Coast and Brisbane – primarily has helped improve the overall performance of developers such as Villa World based in the Gold Coast. Villa World has reported stronger sales figures since the surge and has consequently upgraded its FY17 earnings guidance.
This development in Queensland’s South-East has proven to be largely beneficial from an investment standpoint. It has represented some of the strongest returns from any investment class during that time.