Land sales have surged in Brisbane’s south, with one area bucking a national trend to take pole position here, showing size matters to buyers.
A “hotly-contested” battle between perennial market leader Ipswich and close rival Logan was won by the latter in the third quarter 2019 off its more generous block sizes.
Property services group Oliver Hume research found a massive 37 per cent spike in land sales volumes across South East Queensland in the third quarter.
SEQ’s median land price rose 1 per cent over third quarter to show a 3 per cent rise over the year, rivalling median house price jumps. Moreton Bay was the biggest quarterly jumper, up 2 per cent, in third quarter.
Property services group Oliver Hume head of research George Bougias said after the federal election, land sales began to take off with interest swinging to bigger lots.
“As the market recovered in the third quarter, we were seeing a much stronger rebound in sales rates in Logan,” he said. “There are a number of factors driving this, not the least of which is the large of amount of great new product on the ground in the Logan area, particularly around Park Ridge.”
“The Logan area has also bucked the Australia-wide trend towards smaller lots with the median lot size in the area actually increasing over the last couple of years.”
While SEQ median lot sizes fell 5 per cent (to under 420sq m since 2017), in Logan the lot sizes grew 4 per cent (to over 420sq m).
Oliver Hume Queensland head Matt Barr said the change came off an “increasingly competitive market”.
“Projects are starting to create a point of difference within their developments by offering large lots,” he said.
Real Estate Institute of Queensland southern zone chair Rebecca Herbst of BeeNees City Realty said there was more activity than usual in the region.
“We actually have noticed a shift already in the market, a bigger upswing in activity than we normally see.”
She said while Logan still has small lots available, “the large land lots are a totally different type of buyer”. “There’s not a lot of large blocks or acreage, that’s why there’s a bit of upswing.”
Rashik and Raunita Lal decided to buy their 495sq m corner block at Carver’s Reach in Park Ridge, Logan, the moment they set eyes on it.
“We were looking at buying a house when we drove past it (their corner land lot). We decided straight away, we want this instead. They had a good master plan. It looked really attractive,” he told The Courier-Mail.
“It’s still affordable. If we build this on the same size land elsewhere, it will end up costing us $800,000 to $900,000 (for house and land). I am building a five-bedroom two-storey home and it will probably be $550,000 to $600,000 by the time I’m done here.”
Even with the rise in interest in bigger lots in Logan, affordability was still the biggest motivator for buyers across greater SEQ, according to the Oliver Hume figures, with 38 per cent of sales in the quarter coming off lots sized between 301 to 400sq m.
Mr Bougias said Ipswich was still the most affordable place to buy residential land in SEQ at $512 per square metre – almost half that of Brisbane council region which was the highest in SEQ at $967 per square metre. The SEQ median value per square metre of land was $586.
Among land lots bigger than 420sq m currently on the market in the southern region were lots at Covella development site in Greenbank where land was priced from $235,000 for 480sq m to $250,000 for 586sq m.