Powered by MOMENTUM MEDIA
realestatebusiness logo
Subscribe to our newsletter SIGN UP

Queensland struggles to keep up with land demand

10 November 2009 Reporter

Land prices in south-east Queensland are rising at a rate of more than 10 per cent a year, thanks to large land shortage in the region.

The shortage is being blamed for last month’s HIA-RP data Residential Land Report results, which showed Brisbane land prices had climbed 7.1 per cent in the three months to June, well ahead of the national average of 1.1 per cent.

Just 26,000 lots were produced last year, despite demand for 42,000 lots, according to the Urban Development Institute of Australia.

The Institute’s Queensland chief Brian Stewart said the state was currently experiencing the ‘perfect storm’.

“We have hit the perfect storm in size, dimension, and range of problems,” he said.

“Those include lack of finance from the broking sector to allow projects to proceed; there’s been a substantial escalation in process; then there are the infrastructure charges and construction costs. It means projects are just not viable.”

Mr Stewart’s comments were backed by recent data from the Australian Bureau of Statistics, which showed building approvals had slumped 5.4 per cent in Queensland during the month of September.

Queensland struggles to keep up with land demand
lawyersweekly logo
FROM THE WEB
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast

Where is the biggest threat to agents in 2019?

3rd party lead generation companies
DIY models discounting sales commission
Prop-tech firms cutting out the agent value proposition
A yet unidentified proper disruptor – like Uber or Airbnb
None of the above. There is no threat.
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.