Strong Demand for SEQ Englobo Land Sites to Continue
The South-East Queensland residential land market looks set for another strong year, as it builds on the momentum from 2016, according to Ray White Special Projects Qld.
Ray White Special Projects Qld Directors Mark Creevey and Tony Williams transacted two of the most significant englobo land parcels during 2016 with more than $360 million in major land subdivision site sales across a number of locations.
Mark Creevey said while the southern states continue to grapple with affordability issues, there is still plenty of growth to be had in the SEQ market.
“There was a significant increase in transactional and development activity throughout 2016 from the previous year,” Mark Creevey said.
“We think that the market has plenty of room for improvement in 2017, and well located assets which offer significant scope for development, will be highly prized.”
Key 2016 SEQ sales were dominated by major industry players, including Villa World, who (with Greenfields) purchased the Teviot Downs Estate for $50 million and Frasers Property who bought Brookhaven Estate at Bahrs Scrub for $42 million. Stockland and Peet Limited also got in on the action, with purchasers in Coomera of $40 million and Redbank Plains $37,250,000 respectively.
Tony Williams said: “Demand for residential englobo sites was strong across the board in SEQ, with many vendors deciding that now was the right time to take advantage of buoyant market conditions and divest of their assets while the market remained strong.”
Mark Creevey also added that “premiums were being achieved for sites with approvals, and that larger sites of 500 + lots, located in areas with access to infrastructure and with a proven demand for the product are the most keenly sought after.”
The sale of Teviot Downs Estate in Greenbank (pictured) was the highest englobo land sale of 2016 yielding a price of $50 million, and was negotiated by Mark Creevey and Tony Williams.
Tony Williams said: “The vendor Lateral Estates Pty was a private Sydney based development group, who had owned the site for many years. They had developed the acreage component of Teviot Downs Estate and made the decision to sell the urban balance of the estate.
“Teviot Downs Estate is a prime example of the market responding to a high-quality offering which provided advanced approvals and an immediate pathway to deliver the developed lots to the market. The site ticked all the important boxes in terms of location, approvals, infrastructure and size.”
Mark Creevey said key factors, which are driving the current high demand for development sites, are primarily the increasing sale prices, and healthy sales volumes of new lots and house and land packages.
Statics compiled by the Queensland Government reveal that in the 12 months to June 2016 all seven Local Government Areas (LGA’s) recorded an increase in the median sale price for new lots, while house and land package prices rose in six out of seven LGA’s.
Tony Williams said: “There are a lot of reasons to be positive about the SEQ market for 2017. We expect the market will continue to perform strongly for instance sales volumes are far below those experienced in the peak conditions of 2007, with some LGAs up to 50 per cent below those levels.
“With Sydney prices now substantially above those in SEQ we anticipate receiving strong interest from southern owner occupiers and investors through 2017 and beyond.”