Shortage of land pushing up land prices in the South East

first_imgLAND is in strong demand in South East Queensland with the average block now setting buyers back more than $250,000 according to property services group Oliver Hume.After another strong year of price growth, analysis of settled land sales in 2016 showed vacant land ranging in size from 140sq m to 1,000sq m delivered strong price growth in Moreton Bay LGA, up 7.5 and Logan, up 6%, which were the two best performers.The average increase of 6% matched the previous year, with prices now up 12% since December 2014.Ipswich reported the strongest sales volumes with the development corridor between Springfield and Ripley being mostly behind these statistics.Dean and Summer Currie have recently purchased in the Ipswich corridor for a healthy sum of $282,400 for 597sq m of land in Providence estate at South Ripley, coming in above the average for SEQ.A Ripley resident of 27 years, Mr Currie said buying in Providence was a pretty easy decision with the family of three selling their just over 1ha of land to spend less time maintaining their property and more time together as a family.“We’d been toying with the idea of moving into an estate for awhile, and had been going up into Providence for walks and bike rides at night with our daughter,” Mr Currie said.“It will be nice not to spend six hours every weekend mowing the lawn and to have town water and NBN.“Everything is so close and handy with Springfield just down the road, new Ripley just down the road and no need to hop in the car to go places when we can just hop on the skateboard or bike.”More from newsMould, age, not enough to stop 17 bidders fighting for this home2 hours agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor8 hours agoProvidence estate is set to have more than 7,000 homes with an estimated population of 20,000.Oliver Hume joint managing director Brinton Keath said the pace of land sales growth over the last 12 months reflected continued low levels of supply, with limited new land coming on to the market.“Prices will continue to rise while there is such a shortage of new land coming on to the market,” Mr Keath said.“Unless governments at all levels can find ways to release more land for sale, prices will continue to rise at above inflation.”Mr Keath said despite the growth, Oliver Hume considered South East Queensland one of the most balanced land markets in the country with limited risk that prices will move from the current trajectory.“We expect similar levels of growth in 2017 with the Gold Coast, which is a experiencing a major shortfall in new land, set to experience the strongest growth,” he said.last_img

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