This article is from the Australian Property Journal archive
REDLANDS has beaten perennial leaders Ipswich and Logan to record the fastest growing land prices across South East Queensland, while the broader region has lost its affordability advantage over Melbourne which could temper the driving effects of interest rate cuts and strong population growth.
Oliver Hume data showed the median land price across south east lifted by 12.9% across the year, beating the growth in the established home market of about 12%.
All corridors except the Gold Coast saw increasing land prices, with the strongest growth in Redlands (20%), Moreton Bay (14%), and the affordable corridors of Logan (17%) and Ipswich (10%).
Gold Coast prices slipped by 2%.
Oliver Hume chief economist Matt Bell said South East Queensland had outperformed most capital city markets in 2024 in terms of both price and sales volumes.
“Although December quarter sales dipped slightly in 2024 compared to 2023, they are still only 7% below the peak post-COVID year of 2021,” he said.
“At the same time, median lot prices rose by 13% and per sqm rates rose by 16%.”
The Gold Coast is home to the dearest land prices, at $724,000 for a typical lot, with Brisbane just behind at $716,000. Redlands lifted to $512,000, and Moreton Bay to $416,000. The most affordable lots are in Logan, which came in at $376,875, and Ipswich, at $368,000.
“While the fundamental drivers of interest rates and population growth are expected to remain supportive of continued strong performance, the market has lost its previously significant affordability advantage over Melbourne which is likely to mitigate the impact of rate cuts and ongoing population growth,” Bell said.
Melbourne has seen house price falls in recent times while strong gains have been recorded across Brisbane and South East Queensland.
“That said, we still expect resilience in the South East Queensland market, with interstate and overseas migration levels to remain strong and falling interest rates to support sales rates and median price growth,” Bell said.
The volume of land sales fell in the December quarter, largely to a lack of new stock coming to the market during the month of December, particularly in more affordable corridors.
Although sales volumes slowed throughout the year, total 2024 sales were 31% higher than 2023 levels and 55% higher than 2022 levels as strong population inflows continued and the affordability advantage over Melbourne persisted until late in the year.
Oliver Hume Queensland general manager Dan Ross said the Queensland market was enjoying a period of healthy equilibrium with good demand and a strong supply of new stock.
“As a result of the steady prices increases in recent years demand is primarily underpinned by second home buyers with first home buyers struggling to meet higher deposit and loan serviceability levels. We are still seeing plenty of demand from first home buyers, but higher interest rates make it difficult to finance and complete purchases.”
“We don’t see any supply issues on the horizon with developers working through approvals in a timely fashion.”
The Oliver Hume research is based on an analysis of more than 1,200 land sales across the region in the three months to the end of December. Oliver Hume manages project sales and marketing on behalf of major developers, including Villawood Properties, HB Land & ID Land.
