The Redlands Local Government Area (LGA) on Brisbane bayside has beaten perennial favorites Ipswich and Logan to record the fastest growing land prices in 2024, with total increases for the year approaching 20%, according to property services group Oliver Hume.

Queensland’s growing population and steady supply of new land helped lift annual increases in the median price across southeast Queensland to 12.9%. The annual growth in new land prices was in line with the growth in the established home market of about 12%.

The Oliver Hume research is based on an analysis of more than 1,200 land sales across the southeast in the three months to the end of December 2024. Oliver Hume manages project sales and marketing on behalf of some of the country’s leading developers, including Villawood Properties, HB Land & ID Land. 

All corridors except the Gold Coast saw increasing land prices, with the strongest growth in Moreton Bay (19.9%) and the affordable corridors of Logan (17.2%) and Ipswich (10.2%). 

Oliver Hume Chief Economist Matt Bell said South East Queensland had outperformed most capital city markets in 2024 in terms of both price and sales volumes.  

“Although December quarter sales dipped slightly in 2024 compared to 2023, they are still only 7% below the peak post-COVID year of 2021,” Mr Bell said. “At the same time, median lot prices rose by 16% and $/sqm rates rose by 12%.”
   
“While the fundamental drivers of interest rates and population growth are expected to remain supportive of continued strong performance, the market has lost its previously significant affordability advantage over Melbourne which is likely to mitigate the impact of rate cuts and ongoing population growth.  

“That said, we still expect resilience in the South East Queensland market, with interstate and overseas migration levels to remain strong and falling interest rates to support sales rates and median price growth.”

The volume of land sales fell in the December quarter 2024 in what was a slightly slower end to a strong year.  The fall in sales was due largely to a lack of new stock coming to the market in the month of December, particularly in corridors with higher levels of affordability. 

Although sales volumes declined throughout the year, total 2024 sales were 31% higher than 2023 levels and 55% higher than 2022 levels as strong population inflows continued and an affordability advantage over Melbourne persisted until late 2024. 

The price in $/sqm terms has grown in line with median price rises as lot sizes sold across South East Queensland has remained relatively constant at ~420sqm since 2018.  Continued supply and robust demand for lots sized between 400 sqm and 500 sqm remains throughout the growth corridors.

Oliver Hume Queensland General Manager Dan Ross the Queensland market was enjoying a period of healthy equilibrium with good demand and a strong supply of new stock. 

“As a result of the steady prices increases in recent years demand is primarily underpinned by second home buyers with first home buyers struggling to meet higher deposit and loan serviceability levels. We are still seeing plenty of demand from first home buyers, but higher interest rates make it difficult to finance and complete purchases’.  

We expect the strong momentum to continue into 2025 and affordability levels to improve as interest rates come down. We don’t see any supply issues on the horizon with developers working through approvals in a timely fashion.”