The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
7
print
Print
ResidentialLindsay SaundersFri 03 Mar 23

Record Waits for Queensland Sites to Settle

seqld land settle times blowout

The time it takes a residential lot in south-east Queensland to settle has tripled in less than two years, with the chronic shortage of sites blamed for the blow-out.

According to the RPM SEQ Property Research Report, buyers are waiting 208 days after signing a contract to settle on residential lots.

This is more than double the median of 96 days buyers had to wait in 2021 and more than three times the 67 days it took to settle land purchases in 2020.

The interstate migration boom and labour shortages are factors, researchers said, the biggest issue is the release of registered land lots falling short of market expectation and demand.

The report shows that despite construction in Queensland approaching the record levels of 2016, with 40,290 homes under construction, the release of land remains well below average.

South-east Queensland recorded 17,583 lot registrations in the 12 months to December last year, a figure that comprises urban and large-lot residential land, as well as unit lots. This is well down from the peak of 31,545 in 2017—the figures have been falling steadily every year since then.

“Despite record construction activity across the state, south-east Queensland is failing to keep up with demand for residential lots,” said RPM Group Queensland managing director Clinton Trezise said.

“This is partly due to the combined impact of sustained demand, material shortages and labour constraints. However, the key issue remains a shortage of development sites coming to the market in high demand areas.”

The RPM report shows that south-east Queensland’s indicative land supply appears robust, with a combined 29,208ha of broadhectare sites earmarked for the development of 399,130 homes.

Logan and Ipswich have the lion’s shares of this land. Together, these two areas account for more than half of the south-east’s combined home yield.

null
▲ More than half the land supply for the region will come from Ipswich and Logan.

However, Sunshine Coast and Gold Coast, the lifestyle markets that are among the most in demand by interstate buyers, have about 1,00ha of broadhectare sites each that could be developed to yield 27, 434 and 56,497 residences respectively. These markets together account for just over 21 per cent of the combined home yield.

The RPM report also details the pressure on the rental market amid the south-east’s population boom with data showing a significant decrease in the number of bonds held by the Rental Tenancies Authority over the past year.

Brisbane was the only local government area to record an increase in bonds, which indicates more homes entered the rental pool during the year, RPG said.

The biggest falls in percentage terms were recorded in Somerset and the Lockyer Valley, at 12 per cent and 7 per cent respectively.

However, the Gold Coast led the charge by number with a massive 3469 fewer rental bonds for the 12 months to the end of December—a fall of 4 per cent.

Sunshine Coast had 1502 fewer rental bonds, down 5 per cent, while Moreton Bay bonds were down by 1500 or 3 per cent.

“These decreases have obviously had a knock-on effect on average rents across the region,” Trezise said.

null
▲ The Gold Coast had 3469 fewer rental bonds for the 12 months to the end of December.

Rents on the Gold Coast and Moreton Bay have increased by 19 per cent across all homes. And while vacancy rates across the state eased slightly in December, the most recent quarter’s data found that that there were 6758 fewer bonds held across southe-ast Queensland than the same time last year.

Queensland recorded 55,418 interstate arrivals over the 12 months leading up to June 2022, the most of any state, with the majority of those settling in the south-east corner.

The RPM report shows that affordability remains a key attraction for interstate buyers with the cheapest land closest to Brisbane at Doolandella (average price $414,000), 20 minutes from the city; followed by Logan Reserve ($335,000) which is 30 minutes from the city.

The cheapest land closest to the Melbourne CBD is $530,000 at Greenvale which is under 30 minutes from the city, while in Sydney lots at Marsden Park, 40 minutes from the city, are averaging $910,000.

However, the RPM report notes that, at the current rate of land releases, south-east Queensland will struggle to meet the estimated 30,640 new dwellings a year needed to cater for the expected population growth.

“Amid the ongoing capacity constraints, there is clearly a need for statutory bodies to release more land to ease the pressure on buyers,” Trezise said.

ResidentialAustraliaPlanningReal EstatePlanningSector
AUTHOR
Lindsay Saunders
The Urban Developer - News Editor
More articles by this author
linkedin icon
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
The two towers, of 35 and 34 storeys, help cement the SA capital’s growing status as the best place in Australia for the…
LATEST
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/south-east-queensland-residential-lots-settlement-shortages