South East Queensland, along with select key Regional property markets in NSW continue to reap unexpected benefits created by COVID-19.
Over recent months these affordable markets have proven to be perfectly positioned to meet the criteria (House and Land Packages up to $750,000) set out in the Federal Governments $25,000 HomeBuilder scheme. Strong uplift in buyer demand for vacant land is now seeing record level land sales in many of these regions and young families and downsizing babyboomers outstrip land supplies in a buying frenzy typically only seen at the peak of optimal sales periods.
Property Observer recently featured an article that highlighted the incredible momentum South East Queensland is currently experiencing as land developers scurry to endeavour to keep up with buyer demand. Invest Approved regards land content as one of the key ingredients to property investment success. This success will come much sooner when there is upward pressure on land supply and a limited ability to produce land to match a growing buyer demand.
Many of our Invest Approved locations are now tinkering on land supply levels that verge on being described as ‘critically undersupplied’.
Here’s the article from Aug 19th 2020:
South East Queensland land market has the strongest sales in five years with HomeBuilder scheme.
The South East Queensland (SEQ) land market experienced its strongest monthly sales in more than five years in June with the Federal Government’s HomeBuilder scheme and State Government grants underpinning buyer demand.
Total land sales in June were 1,110, compared to 273 in April – more than 400 percent increase.
Prices remained relatively stable during the quarter, falling 0.8 percent to a median price of $248,000 compared to the March quarter.
In the 12 months to the end of June, prices rose 1.5 percent.
In terms of sales in each region, Moreton Bay moved into the top spot in the South East Queensland land market, taking 26 percent market share. For the first time since March 2016, neither Logan nor Ipswich have claimed the largest portion of sales.
Logan managed to push Ipswich to third place and achieved 24.9 percent of sales while Ipswich collected 24.7 percent, only a handful of sales separated the two regions. This is the first time that Ipswich has been outside of the top two since early 2015.
After dropping to just 273 sales across the South East in April as lockdowns closed sales offices and dented economic confidence, the market roared back to achieve 1,110 sales in June.
The total number of sales for the June quarter was 1,910, up from 1,518 in the March quarter and the strongest quarterly sales since December 2017.
The data was compiled by Oliver Hume Research by analysing nearly 2,000 transactions across more than 150 projects across Brisbane, Gold Coast, Logan, Ipswich, Moreton Bay and Redland local government areas.
Oliver Hume National Head of Research George Bougias said the HomeBuilder grant, combined with record low-interest rates, was driving the demand from first and second home buyers.
“Despite the Coronavirus shutdowns and their economic impact, there are still plenty of buyers with stable incomes who are more than happy to take advantage of the numerous grants and incentives available,” he said.
“These are the right incentives at the right time and will keep thousands of tradies in jobs as homes begin to spring up on these blocks in the next few months.
“The first half of 2019 was a tough time for the SEQ land market but there was a solid recovery underway towards the end of the year and right up until the lockdowns commenced in the final two weeks of March,” he said.
“With the restrictions lifted and the great incentives in place the pent-up demand is returning.”
The $25,000 HomeBuilder grant combined with $15,000 first home buyer grant from the State Government, means eligible buyers can access $40,000 to help them get on the property ladder. Other incentives, including the First Home Loan Deposit Scheme (FHLDS), can save buyers thousands more on top of the grants.