DESPITE a slowdown in vacant land sales volume for the 2018 calendar year, the weighted average price for vacant land improved to $276,959, reflecting a 5.13 per cent increase from the corresponding 2017 calendar year, according to Ray White’s SEQ Vacant Land report
Ray White Special Projects QLD Executive Director Mark Creevey said the undersupplied development corridors including Brisbane City, Moreton Bay and Gold Coast witnessed the strongest price growth among the 10 local authorities from the year prior.
“The 2018 calendar year exhibited a clear slowdown in vacant land sales activity for the majority of the 10 local authorities that make up South East Queensland, with a total of 8,733 vacant lots sold, reflecting a 33.64 per cent fall from the 2017 calendar year,” he said.
“The fall in sales activity is primarily considered a result of macro prudential regulation in the financial markets.
“This remains the single largest factor influencing the market at present, with buyers stifled by reduced borrowing capacity, resulting from lower gearing requirements and greater scrutiny over serviceability by banks.
“We expect price growth through major growth corridors to remain a trend into the second half of 2019, as a result of thinning supply, the recent Federal Election result, the relaxation of regulations applied by APRA to the lending institutions and recent interest rate cuts.”
Ray White Special Projects QLD Executive Director Tony Williams said quality land supply remained the key challenge for South East Queensland in the short-to-medium term, with 2018 lot approvals down 22.26 per cent on the year prior.