Strong Price Increases Fuel Market Growth 

SEQ has had a strong year in its development land market, driven by sharp price increases in retail lots within major growth corridors. These price rises have built developer confidence, leading to higher returns from land releases and making the market even more attractive. 

Increased Demand and Limited Supply 

The rise in profitability has drawn more buyers into the market, ramping up competition. At the same time, the ongoing supply-demand imbalance is becoming more pronounced. A shortage of large-scale development sites is pushing developers to combine smaller parcels of land to create space for bigger projects. This trend of land amalgamation is gaining traction as a way to unlock potential in fragmented areas. 

Interstate Interest Shaping SEQ’s Landscape 

Developers from interstate, especially from Victoria, are taking notice of SEQ’s growing appeal. While retail lot prices in Queensland have increased, they still remain below the levels seen in Victoria. SEQ development land transactions recently averaged $1.6 million per net developable hectare, compared to $2.2 million in Victoria. This price gap makes SEQ an attractive option for out-of-state buyers looking to expand their portfolios. 

Key Opportunities for Landowners 

The combination of a strong market and land scarcity presents an opportunity for landowners in SEQ to unlock the full value of their holdings. For those with larger parcels, 2024 is proving to be a particularly good time to capitalise on land value, with positive prospects ahead. 

Looking Ahead: Continued Growth 

With strong demand and a limited supply of land, SEQ’s development land market is set to continue its growth. As both local and interstate developers focus on the region, it will remain a key area for future development. 

This article references findings from our November 2024 South East Queensland Greenfield Market Report. Read the full report here.