Research reveals vacant lots on the Gold Coast have hit a record rate

A NEW report by Ray White says the region’s residential land market is recording strong results, with the highest ever recorded land value per square metre

VACANT land values on the Gold Coast have hit a record rate, according to research by Ray White Commercial.

The Between the Lines Gold Coast LGA Vacant Land Report shows the region’s residential land market has recorded strong results for the six months to June, 2017.

Ray White Commercial head of research Vanessa Rader said the median vacant land value grew 6.56 per cent to $260,000.

“This represents a median land value of $601 per square metre, which is the highest rate on record,” Ms Rader said.

“In general, smaller lot sizes are being brought to market and this has contributed to prices firming over the past 12 months.”

Development approvals, which fell after 2011 before starting to recover in the past three years, increased by 8.5 per cent to 2324 — the highest number since 2011. There were 126 projects approved, an increase of 22.3 per cent on the previous year’s 103.

As well as the record median land value, the rate per square metre has increased on average 5.18 per cent per year over the past decade.

Ray White Commercial Special Projects Queensland director Dax Roep said the data shows the continuing strength of the vacant land market.

A highlight was growth in the median value of house-and-land packages, which reached $494,000 in the year to June, 2017.

“The number of packages sold has reduced this year from 354 in the June, 2016 period to the current level of 294 — the lowest in three years,” Mr Roep says.

“However, the growth in values does not mirror this dampened demand.”

The report also shows there has been a reduction in investment activity. After four consecutive years of increases, the number of lot sales during the year to June, 2017 has fallen by 30.91 per cent.

Mr Roep said a diminishing supply of greenacre land suitable for subdivision is expected to continue pushing up Gold Coast land prices.