The price of land has fallen by $293,000 in one South East Queensland council region, but rose at twice the rate of inflation in others as interest rates and cost of living hit home.
The median price of a plot in South East Queensland hit $345,000 in the first three months of 2023, the Oliver Hume Quarterly Market Insights report, out Friday, found – a 12.1 per cent rise compared to the same time last year, up by $37,700.
But there were vast differences on the ground with dramatic annual falls of -33 per cent in Brisbane and -15.1 per cent on the Gold Coast, and a double digit pace in Moreton Bay (+14.9 per cent) and Ipswich (+14.3 per cent).
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Brisbane’s median land lot price went from $888,000 in Q1 2022 to $595,000 in Q1 2023, a difference of $293,000, the report found.
That saw Brisbane LGA drop down to become the second most expensive place to buy land in SEQ, with prices now 68.9 per cent higher than five years ago.
The Gold Coast, which also saw a double digit fall, dropping -15.1 per cent in the past year, is now the most expensive place to buy land in South East Queensland.
The median price of a new block there was $645,000 in the first quarter 2023, a figure that’s 102 per cent higher than it was five years ago.
The two municipalities with SEQ’s biggest annual land price surges – at twice the pace of inflation – were Moreton Bay whose median hit $385,000 after rising 14.9 per cent in the past year, and Ipswich which went to $320,000 after jumping 14.3 per cent.
Compared to five years ago, land in Moreton Bay is 48 per cent more expensive now, with Ipswich up 55.5 per cent.
Logan is now the most cheapest LGA to buy land in across South East Queensland despite a 9.2 per cent rise in the past year, with its median lot price sitting at $315,000.
“The addition of multiple new projects in the Logan region added significant new stock levels, helping to boost the areas market share 38.8 per cent in the March quarter,” the report said.
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Land sales across South East Queensland now sit at about two thirds of the region’s long term average, but lower volumes transacting were not translating into cheaper prices, the report said.
Buyers continued to gravitate towards smaller lots, Oliver Hume found, with those sized 301sq m to 400sq m most in demand, accounting for a third of all sales in the March quarter (34 per cent).
Oliver Hume CEO project marketing Julian Coppini said the lower sales numbers meant there was a high level of good stock for the first time in years.
“The high levels of stock, combined with the underlying resilience of the local economy and strong population growth, has allowed prices to hold up relatively well,” he said.
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