Affordability will continue to be a major issue for those looking to enter the south-east Queensland property market.
High infrastructure costs and significant planning delays for new developments are contributing to spiralling prices for new housing stock, according to property analysts.
Colleen Coyne, director of Colleen Coyne Property Research, said median residential land prices on the Gold Coast and Sunshine Coast remain among the highest in the country, making it difficult for first time buyers to enter the new housing market.
The median cost of land is $232,250 on the Gold Coast and $236,750 on the Sunshine Coast, both significantly higher than the $164,900 in Melbourne, Housing Institute of Australia (HIA) and RP Data figures show.
Sydney is not much more expensive, recording a median land price of $255,000.
Unlike Brisbane, where the median land prices rose by 30 per cent over the past three years to $223,900, Sydney’s median price has fallen by 15 per cent over the same period.
“This has contributed to Sydney’s improved affordability, while the immediate outlook for affordability in south-east Queensland remains bleak,” Coyne said.
“There are four factors contributing to land shortages in the state and therefore driving higher land prices — state and local government charges and delays, difficulties in gaining development finance, high levels of population growth and consumer demand for larger houses,” she said.
A study by the Australian Bureau of Statistics (ABS) indicated there had been a 32 per cent increase nationally in the average floor area of new houses over the twenty years to 2007/08, with Queensland’s average house size rising 40 per cent to 247sqm.
Coyne said building costs had also climbed substantially over this period.
“The Smarter Small Home on display at Randle Road, Pinkenba, in Brisbane is one step in the right direction, showcasing design elements to maximise living space without maximising floor space — and therefore reducing costs and the home’s environmental footprint.”
