Residential communities in South East Queensland are experiencing the strongest enquiry from potential buyers than they have in years, according to Colliers International.
Across Queensland, Colliers International have been marketing residential communities for over 30 years and are industry leaders with over 30,000 residential land sales recorded to date. They currently consult and provide sales and marketing services for over 20 residential communities across South East Queensland totalling over 6,500 lots.
Clinton Trezise, Associate Director of Residential at Colliers International said their enquiry levels for land sites in the first quarter this year are 50 per cent higher than same time last year, with interest largely coming from local and interstate owner occupiers.
“Based on the level of enquiries received in the first quarter we are expecting to see a 20 per cent increase on sales recorded in the region last year which totalled 11,500 blocks of land. We haven’t seen this volume of sales since 2007. This is plausible given the current demand in south east Queensland, however it will also be somewhat dependent on supply.
“The South East Queensland market is performing well and is expected to continue due to key fundamentals such as steady employment and population growth and low interest rates which has attributed to a steadily improving market. This has given buyers confidence to make their next property move.
“In terms of vacant land sales, buyers are attuned to the fact that there is a seemingly finite supply of land, especially close to major centres. The improving market has allowed aspirational buyers to sell their existing home for a good price and pursue their plans of building their dream home.
“Peregian Breeze at Peregian Beach on the Sunshine Coast has been one of those sales successes with over 200 land sales in under 18 months. We are almost two years ahead of schedule in sales with a growing mix of interstate buyers emerging looking for a lifestyle change,” said Mr Trezise.
Daniel Hirst, Associate Director of Residential at Colliers International said the strongest demand is coming from local owner occupiers looking for well-located residential communities offering connectivity to parkland, recreation areas, transport, employment, local shopping, restaurants and lifestyle pursuits.
“These buyers are looking for a unique offering such a coastal location like Peregian Breeze at Peregian Beach, rare acreage lifestyle at Teviot Downs, Aspect at Buccan and the Crossing at Karalee, and quality townhomes in premium locations.
“Ellendale is a premium new community being delivered by Cedar Wood in a beautiful undulating setting at Upper Kedron, just 12km from the Brisbane CBD which will be released soon and has already received over 900 registrations of interest.
“Another emerging trend is that owner occupiers are looking for large high quality townhomes instead of a traditional detached homes. An example of this is Stockland’s Sola at Northlakes, and soon to be released Mainwaring Collection at Brightwater on the Sunshine Coast,” said Mr Hirst.
According to Mr Trezise they are seeing a re-emergence of interstate buyers migrating to south east Queensland communities. “This is off the back of the current disparity in average prices between major capital cities and centres - you can by two homes in Queensland for the price of one in Sydney or Melbourne.
“A buyer selling their home in Sydney where the average home is between $800,000 to $1,000,000, can stretch their money a lot further to build or reinvest in South East Queensland where average prices vary between $450,000 to $650,000.
“There are a number of major projects and opportunities across South East Queensland that are supporting employment such as: infrastructure around transport node upgrades; the 2018 Commonwealth Games; new hospitals; the Queens Wharf Development in Brisbane; and central re-developments on the Sunshine and Gold Coasts. The recent commitment from the Federal government to the $200 million development of the Ipswich Motorway will also benefit key surrounding region responsible for future land supply.
“There is also some confidence for investors moving forward after the government announced its commitment to leave the negative gearing and capital gains tax regimes unchanged.
“Buyers have a growing appetite for residential communities in South East Queensland and the market indicates a strong year for residential land and townhome sales,” said Mr Trezise.