South East Queensland land market picking up for first time since GFC

The residential land market in South East Queensland is showing signs of a recovery in what would be the first green shoots for the area since the Global Financial Crisis, according to Ray White Commercial head of research Vanessa Rader.

Developers are set to benefit, with improvement in the market on the back of steady pricing and availability of finance.

“The demand for housing declined after the GFC due to more stringent lending criteria,” Rader’s Between the Lines, SEQ Residential Land Report explained.

“But we are now seeing the South East Queensland region’s first period of increase with areas such as the Gold Coast, Sunshine Coast and Logan City all experiencing a significant rise in lot registrations and lot production,” she said.

The low interest rates, favourable lending conditions and growing demand for residential property has Rader suggesting that an increase in lot registrations and strengthening lot sales will be seen in the next few months.

Over the past year, an increase in sales transactions has had an impact on vacant lot sale values as well in the area.

“The low in the market recorded in 2012 is now behind, with 2013 showing the first period of increase,” she said.

“Looking at each of the regions, Gold Coast is showing a strong comeback increasing lot production by 48.37 per cent in the year after being one of the first regions to decline supply.”

Over 35% growth in registrations across the year for the Sunshine Coast has also been seen, which she attributes to increasing consumer confidence and a stronger local economic climate.