Land Supply Shortage in Southeast Queensland
- Posted By David Brown
The land is restrained in south-east Queensland with stock levels jumping almost 70 per cent during 2021, increasing pressure on the buyers, competition, and price growth.
The developers in Queensland have been forced to introduce auctions due to land and lots shortage and the tumult it caused among the prospective buyers.
According to Oliver Hume Research, the median time on the market for new land across SEQ municipalities was just over 60 days and the current stock has dropped 69.5 per cent over the past 12 months.
There were only 396 lots of land on the southeast Queensland market in September this year compared to 1299 lots in September 2020.
The most significant decrease in the number of lots on the market has been in the growth corridor.
- Logan -74.5 per cent.
- Ipswich - 66.1 per cent.
- Moreton Bay -70.9 per cent.
Only the Gold Coast withstand the trend with a small increase (5.9 per cent) but its stock levels are still below the two-year average, down 28.6 per cent.
Oliver Hume Queensland project director Matt Barr said the delays in construction and prolonged approval processes had contributed to the declining stock levels.
He also said restrained demand had caused heated competition in the market and price growth.
“Buyers are screaming for land and the significant fall in stock shows us how high demand is at the moment,” Barr said.
“Developers are even implementing sales procedures such as ballots and auctions to give prospective buyers a fair chance of securing a lot".
“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".
“Strong demand, improving buyer confidence and low-interest rates are making it one of the most competitive land markets in recent history.”
Barr said the good news was that several large developments were set to launch in the near future, which would help satisfy some of the demand.
But, he said, another factor on the horizon was “increased interstate migration which, as restrictions ease, could place even more pressure on the local land supply pipeline”.
