Buying land for developers and builders in SE Qld I am continually amazed at the shortage we have.
Land titled and shovel ready under $400,000 is near impossible. The demand from builders seeking serviced lots in emerging communities around Brisbane is through the roof (no pun intended).
Builders need to keep working and Qld needs more homes. To keep the price more affordable and below $750,000 the price of land needs to be under $400K.
Most Logan, Ipswich and Moreton Bay new land sites are above this price point and climbing. Each new release is getting smaller and more expensive.
The only way to keep the price down is to go out further from the CBD but in order to make this appealing for buyers the services and infrastructure need to be there.
The following charts courtesy of Michael Matusik show land prices in SE Qld are rapidly rising but land sizes are decreasing.
Matusik says “The market is getting tighter, with smaller lots fetching premium prices, reflecting the growing competition for available land and the weighty price tag on urban space.”
The following chart shows the distribution of land sales in SE Qld with a total of 18,250 sold during FY 2024 with Logan leading at 23% of the share.
As Matusik points out what is most clear is the imbalance of supply and demand on the Gold Coast with only 2% of total sales.
Understandably, many buyers are struggling to grasp that new land lots are shrinking while the price continues to rise. I often hear from buyers that “it’s too small and not worth the price”.
The paradox of shrinking land and rising costs is not just a fleeting trend.
For buyers they should take note and act decisively or be prepared to move further away from the CBD if they want to own a piece of the Australian Dream.
Street Art by Shozy, Salekhard, Russia
