A Queensland developer paid $13m for a raw parcel of land in Ipswich which has 323-lot approval

HomeBuilder and other stimulus measures have sparked a land rush west of Brisbane, with a development group paying more than twice as much for a large parcel of land which was last sold in March last year.

A huge parcel of land in an Ipswich suburb that will accommodate up to 1000 residents has been snapped up for more than double what it sold for early last year.

In a sign of developers increased hunger for well located development sites in a tight southeast Queensland market, the “raw” 27.154ha site at 186 Collingwood Drive, Collingwood Park, was bought by a Queensland-based development group for $13m.

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Ray White Special Projects QLD’s Tony Williams, who struck the deal with Mark Creevey, said government stimulus packages such as the HomeBuilder and First Home Owners grants have sparked a rush on subdivisions.

“It’s really strong at the moment and most developers are selling stock hand over fist,” he said.

“But land has now gone into another gear because developers are selling down their pipeline and need to replace that with new stock. This sale highlights the competition in the marketplace for sites with mitigated planning risk.”

The parcel of land was originally purchased by a private Sydney-based group Weiya Development under the hammer in March last year for $5.4m in a deal struck by Mr Williams and Mr Creevey.

Ray White Special Projects’ QLD’s Tony Williams and Mark Creevey at the 27.154ha parcel of land at 186 Collingwood Drive, Collingwood Park, which sold for $13m.

Weiya Group obtained development approval for a 323-lot residential subdivision with an average lot size of 477sq m. They were also able to successfully enter into an EPBC (Environment Protection and Biodiversity Conservation Act 1999) offset agreement.

Mr Williams said the major concern from groups when assessing the site in early 2019 was that the previous DA had lapsed, coupled with the potential impact on the yield of obtaining approval for management of the vegetation.

“Buyers are definitly prepared to pay a premium in the current marketplace for sites which offer approvals, access to infrastructure, and proven depth of demand for the completed product,” he said.

Mr Creevey refused to say who bought the property other than they were a southeast Queensland-based development group which preferred to “fly under the radar”.

“The land market has been quiet for a number of years and the ability to acquire a few hundred lots with approval and access to infrastructure is really difficult at the moment,” he said.

“The opportunities are in pretty short supply but HomeBuilder has provided a massive stimulus and now when they present themselves and there is strong competition groups are prepared to pay a significant premium.”