Vacant land sales, development approvals fall in Logan: SEQ report

A SURPRISING south-east Queensland real estate report has revealed a sharp decline in lot approvals and vacant land sales in Logan last year.

REAL ESTATE: Ray White's south-east Queensland vacant land report revealed a sharp decline in development lot approvals for the Logan area in 2018.

REAL ESTATE: Ray White's south-east Queensland vacant land report revealed a sharp decline in development lot approvals for the Logan area in 2018.

Ray White's south-east Queensland Vacant Land report found 2893 development application lots were approved in Logan in 2018, a 47.55 per cent drop compared to 2017.

This is the lowest number of approvals since 2014 and the most significant fall in south-east Queensland when compared to the Gold Coast (46 per cent decline) and Moreton Bay (33.95 per cent decline).

Vacant land sales were also down 21.26 per cent to 1174 pieces of land sold off the back of a particularly strong year in 2017 which had almost 1500 vacant land settlements.

Land prices were still going strong last year with a 3.41 per cent increase in the median price up to $227,500 compared to 2017.

Median house and land packages have increased 2.91 per cent to $441,500.

This comes despite significant signs of growth in the west Logan corridor including residential developments in the Greater Flagstone Priority Development Area, Jimboomba, Yarrabilba, Logan Reserve and Park Ridge.

Ray White co-special projects Queensland executive director Mark Creevey said the slowdown in vacant land sales and increases in land prices was a trend reflected across south-east Queensland.

"The 2018 calendar year exhibited a clear slowdown in vacant land sales activity for the majority of the 10 local authorities that make up south-east Queensland, with a total of 8733 vacant lots sold, reflecting a 33.64 per cent fall from the 2017 calendar year," he said.

"The fall in sales activity is primarily considered a result of macro prudential regulation in the financial markets.

"This remains the single largest factor influencing the market at present, with buyers stifled by reduced borrowing capacity, resulting from lower gearing requirements and greater scrutiny over serviceability by banks."

The Redland Bay region defied the trend to produce strong results across the board with a 7.02 per cent increase in land sales and 14.1 per cent jump in price growth.

Ray White's co-special projects Queensland executive director Tony Williams said there were signs of optimism in south-east Queensland's land market despite the drop in land sales.

"Inquiry levels from locals and increasing numbers of interstate and even overseas groups are strong, with limited opportunities at present to acquire sites which offer scale, access to infrastructure, approvals or even a clear pathway to an apporval," he said.

This story Vacant land sales, development approvals fall in Logan: SEQ report first appeared on Jimboomba Times.

Comments