Queensland builders said they don’t expect demand to fall for vacant land despite Brisbane prices jumping by more than 21 per cent in the last 12 months.

In the HIA-CoreLogic Residential Land Report for the September quarter 2024 Brisbane was second only to Perth (38.6 per cent), taking the median price for land to $400,000.

Cy Pearson, the Director at FRD Homes which had 188 homes underway in the first half of this financial year, placing it 14th in The Top 25 Qld Builders Half Time Report, said demand for land will remain strong despite the surge in prices.  

“Remember that our industry doesn’t work on factual change – there’s a saying that I truly believe – perception becomes reality,” Mr Pearson said.

“If there’s the perception of a rate cut, watch the market flurry around it start moving. 

“The perception of a rate cut coming will keep the market buoyant.” 

HIA Economist Maurice Trapang said the median price of land sold nationally in the September quarter 2024 was a record high $366,510,” Mr Tapang said.

“Land prices have risen by more than double the rate of growth in the ABS Consumer Price Index (CPI) and five times faster than growth in the cost of home building materials, as measured by the Producer Price Index (PPI) over the same period.

“Australia’s capital cities continue to drive this strong growth, with their median price increasing by 9.2 per cent compared to the previous year to $408,160.

“Prices have increased the fastest in areas where either home building activity is beginning to pick up or where the cost of providing the infrastructure for new lots is high.

“There are signs that despite the rise in land prices, particularly in the capital cities, buyers are looking at better opportunities to purchase land, whether through exploring growing regional locations or buying smaller lots.

“Increased urgency and commitment from governments to release more land for residential development and adequately service it with essential infrastructure will alleviate rising land prices and help more Australians into homeownership.

CoreLogic Economist Kaytlin Ezzy said affordability continues to be a major hurdle in bringing new housing stock online.

Affordability continues to be a major hurdle in bringing new housing stock online.

“The continued uptick in land prices, coupled with upward pressure on construction costs and the higher for longer interest rate environment, has moved new home ownership further out of reach for some Australians,” Ms Ezzy said.

Fast Facts

• Brisbane median land price is up 21.2 per cent to $400,000 and includes Moreton Bay, Logan, Ipswich, as well as Brisbane City Council regions. 
• The median price of land sold nationally increased by 7.6 per cent compared to the previous year.
• Land prices have risen more than double the rate of growth in the Consumer Price Index and five times faster than growth in the cost of home building materials.
• The HIA-CoreLogic Residential Land Report measures sales activity in 52 housing markets across Australia.