The sun shines on the SE QLD market

Sales of new land and home packages in south-east Queensland have increased 17 per cent in the 2013 financial year, and valuers say the past three months have shown even higher growth.

National valuation firm Herron Todd White said the increase in sales for land lots, had helped lift values by between 5 per cent and 10 per cent and it’s largely because of lower interest rates, people being more decisive and the fact that there bound is coming off a very low base rate.

HTW’s chairman Gavin Hulcombe said the past three months have further pushed up the sales rates.

Brisbane’s northern suburbs now show an increase of l00 per cent in sales rates for the last 12 months while in the far western suburbs, where bigger developers such as Investa, Stockland and Lend Lease have projects, the sales rates have increased between 70 per cent and 80 percent

“Most of the estates we have looked at in the north have pretty much doubled their sales rates in the past six to 12 months, and a lot of these are at presold stages, so they are not even constructed: Mr Hulcombe said. “You won’t see these figures come through in approvals or dwelling starts for some time, so it is a very good lead indicator to say that the market has turned.”

Sales can always fall through, but there is also evidence that the rate of cancellations has dropped. Developer Stockland reported in October that it had recorded a drop in the cancellation of new-home purchases in Queensland. Stockland’s head of residential for Queensland, Kingsley Andrew, said the rate of cancellations for new home purchases had dropped from 25 per cent in 2010 to 11 per cent.

Official building approvals data showed a 3.8 per cent rise for Queensland in the month of September. Building approvals for the state have been on the rise since July.

Mr Hulcombe said it was nothing like the explosive increases in volume and values that Sydney had seen in the past year. However, the results did show the south-east was recovering.

He noted that a high proportion of buyers had been interstate, and had come through investment marketing channels. However, that had turned, and localised buyers had increased as a proportion.

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