An almost 70 per cent fall in land for sale in Southeast Queensland has led to surging prices and one of the most “most competitive land markets in recent history”.
New analysis from property services group Oliver Hume reveals that the availability of land has fallen by 69.5 per cent over the past 12 months as keen buyers make the most of record-low interest rates and positive sentiment.
There were just 396 lots on the market in September 2021 across southeast Queensland, which is sharply down from the estimated 1,299 lots for sale at the same time last year.
In particular, the growth corridors of Logan (down 74.5 per cent), Ipswich (down 66.1 per cent) and Moreton Bay (down 70.9 per cent) have experienced significant falls in the number of available lots over the year.
According to Oliver Hume, there are 100 fewer lots available across southeast Queensland compared to August, suggesting land is being heavily absorbed by the market.
The Gold Coast was the only location that saw a small increase in stock, up 5.9 per cent. However, availability on the Gold Coast remains 28.6 per cent below the two-year average.
Oliver Hume Queensland Project Director Matt Barr said tight supply has led to many developers implementing ballots and auctions.
“Buyers are clamouring for land and the significant fall in available stock demonstrates just how high demand is at the moment,” Mr Barr said.
“Developers are even implementing sales procedures like ballots and auctions to give prospective buyers a fair chance of securing a lot.
“Ballots and auctions were rarely seen for land sales in Queensland before now.
“Auctions and ballots for land occur often interstate, but for them to be happening in Queensland tells you how hot the local property market has become.”
Mr Barr believes the current conditions are the strongest he’s seen in a long time, however, there could be more supply on the way.
“Strong demand, improving buyer confidence and low interest rates are making it one of the most competitive land markets in recent history,” he said.
“The good news for prospective buyers is that several large developments are set to launch in the near future, which will help satisfy some of the demand.
“Another factor on the horizon is increased interstate migration which, as restrictions ease, could place even more pressure on the local land supply pipeline.”
