The recent upswing in property sales across the country, and Queensland in particular, is expected to continue for a number of years, according to recent figures from BIS Shrapnel.
According to the latest figures distributed by the organisation, the frequency of land sales in the future is going to grow rapidly, following a number of years of low figures.
In Queensland, there have been a number of drivers of this shift in residential land sales. Among the core developments have been low interest rates and strong availability of land, which makes it more attractive to build a new houses rather than move into an existing property. This trend has also been behind the increase in housing construction across the state.
This combination of factors has led Brisbane to see a substantial increase in the number of lots sold in the area, according to the report series author Angie Zigomanis.
“The signs are also emerging in metropolitan Brisbane, where lot production fell below 5,000 lots in 2012/13; the lowest level in at least 20 years,” said Mr Zigomanis.
“The return of house price growth to the Brisbane market is resulting in an increase in upgrader demand, which should see lot production continue to rise over 2014/15 and 2015/16.”
The Gold and Sunshine Coasts were also identified as areas where demand for land is increasing. According to the research, this is being fuelled by a number of factors, including the increasing demand from those moving out of Brisbane, along with migration from other parts of the country.
Alongside these changes, the report also highlighted other developments that are affecting the supply of new construction land. Among these was the ongoing decrease in the average size of plot sizes, which has dropped considerably. Across the main capital cities, the average size of a portion of land has decreased by between 16 and 26 per cent, depending on the market.
For assistance navigating the process of purchasing this property, it is important to have the right legal advice from a conveyancing expert.