FALLING SUPPLY SENDS LAND PRICES SOARING
The cost of vacant residential land on the Gold Coast has reached an all-time high of $666sq m – 78 per cent higher than in 2009 when it was $374sq m
THE square metre rate for vacant residential land on the Gold Coast has reached an all-time high of $666 as falling supply puts upward pressure on prices.
The Ray White SEQ Vacant Land Report, which covers the 2018 calendar year, shows the median vacant land price rose 7.42 per cent in the past year to $666sq m.
It is now 78 per cent higher than in 2009 when it was $374sq m.
The price surge, also reflected in the median land sale price, which is up 17 per cent to $289,000, comes as the number of sales has fallen from a peak of 2985 lots in 2015 to just 1376 in 2018.
The number of lot approvals was 1180 in the past year, the lowest number in five years and 46 per cent lower than 2017.
Dax Roep, associate director of Ray White Special Projects, said negative sentiment in the market prior to the Federal Election has given way to a more upbeat assessment of the sector.
“Developers and builders are reporting a noticeable improvement in inquiry and sales which is expected to be a continuing trend for the balance of this year,” he said.
“The Gold Coast is fortunate that while lot sale values continue to firm, the price disparity with other states in Australia continues to appeal to both end users and investors.”
Executive director Matthew Fritzsche echoed Mr Roep’s comments, stating supply constraints are expected to continue due to a lack of land suitable for subdivision. “That will continue to hold prices steady in the short-to-medium term,” he said.