THE PRICE of vacant land on the Gold Coast has hit a record high, driven by new infrastructure, the Commonwealth Games and a lack of stock.
The median price has now hit $251,500 – up more than $10,000 in 12 months.
The data, provided by property services group Oliver Hume, shows the limited remaining land at Coomera and Pimpama will be sold out in less than seven years.
Oliver Hume Queensland joint managing director Brinton Keath said the lack of supply was reflected in enormous buyer demand each time new blocks were released at the Coast’s current housing estates.
“Masterplanned communities in the major growth corridors represent a key reason behind land price spikes and (they) continue to attract interest from first-home buyers and investors,” he said.
“With all this stimulated demand, coupled with very low levels of supply, prices have had nowhere but to go up as the demand strongly outweighs supply.”
“Proof of this is the Gold Coast’s number one land project – Villawood’s The Surrounds – where 120 lots have been sold in the seven months since launch. Prices in the development have risen over 21 per cent during this seven-month time frame.”
Mr Keath said that with a growing population and limited new land releases, Gold Coast housing affordability would continue to be a concern.
“The vast majority of zoned land suitable for development is very limited on the Gold Coast,” he said. “A good proportion of this is located on country that possesses topography that is not suited for traditional, family-style housing.
“There is a large site in Mudgeeraba, however its location and pricing will likely not lend itself to first-home buyers.
“The early talk of the possible rezoning of the canefield lands needs to be brought forward and towards the top of minds in local and state government thinking and budgeting.”
Villawood Properties state development manager Michael Williams said land releases in the group’s Helensvale development The Surrounds were being snapped up within 72 hours of hitting the market.
“For The Surrounds it’s in the perfect location,” he said
“From a transport perspective you’ve got the heavy rail, access to the M1 and Gold Coast Highway and the light rail is under construction. There’s the existing shopping centre with two supermarkets. People are looking and realising everything is already here.”
Mr Williams expected to see moderate land value growth over the next 18 months.
Stockland regional manager David Laner shared a similar view.
He said a shortfall in land supply on the Gold Coast was contributing to the increased demand for new affordable homes within easy reach of services and facilities.
Coomera Waters couple Marry-Ann and Dale Burke recently bought a 1,017sq m block in PineVue at Maudsland for $340,000.
The mother-of-two said the pair looked at existing houses but decided to build instead.
It will be the family’s third house build after moving to the Gold Coast from Toowoomba.
“We spent quite a bit of time looking at houses but they were about 10 to 12 years old for $700,000 and we really couldn’t find anything that we liked,” Mrs Burke said.
She said they were happy to pay a premium for a bigger block that was flat.
GOLD COAST LAND PRICES*
March 2016: $240,000
June 2016: $243,225
September 2016: $249,400
December 2016: $250,000