The South East Queensland (SEQ) region is currently experiencing a dynamic phase in its property market, shaped by both challenges and opportunities. As specialists in sourcing, securing, and advising on real estate acquisitions and projects in this region, Yates & Associates is keenly aware of these market conditions and adept at navigating them for the benefit of property developers and high net worth property investors.
The recently unveiled 2023 Draft South East Queensland Regional Plan (SEQRP) is set to play a pivotal role in shaping the future of the region's property market. This plan outlines the State Government’s approach to development over the next 25 years, addressing current and future challenges in the residential property market. A crucial aspect of this plan is the call for the development industry to focus on building up rather than out, acknowledging the cost challenges associated with higher density projects.
One of the most pressing issues in SEQ is the housing crisis, primarily due to a constrained supply over many years. To meet the demands of a rapidly growing population, projections indicate the need for approximately 35,000 new homes to be built annually until 2046. This demand is driven by both domestic and international migration, as well as a notable increase in single-person households, which now constitute 40.5% of all household types in the region.
The property market in SEQ remains robust, with a resurgence in interest for property purchases, supported by three recent interest rate pauses and the widespread belief that interest rates have peaked. High clearance rates and a rising number of new listings, although still below previous years, indicate that demand is rapidly absorbing new supply. Particularly encouraging is the strong performance of key master-planned communities, which are highly sought after due to their thoughtful design, amenities, essential infrastructure, and location in areas with undersupplied land.
The region possesses appropriately zoned, well-located greenfield land, yet many areas lack the necessary infrastructure or face development constraints. The SEQRP’s adjusted 70/30 infill/greenfield strategy signifies a shift in focus, although greenfield developments have historically been crucial for new housing supply. Recent surges in construction costs, notably a 30% increase in the last 12 months, have made high-density apartment construction nearly unaffordable, costing close to $5000 per square metre.
Despite these challenges, the SEQRP offers a promising long-term perspective. The plan’s emphasis on streamlining approvals, zoning, and land-use regulations is a welcome response to the housing crisis. However, immediate challenges remain, necessitating workable solutions that facilitate more supply while maintaining responsible development practices. This calls for collaboration across all levels of government and industry to efficiently deliver a diverse range of housing solutions, addressing urban boundaries and the integration of infrastructure and housing planning.
As a firm at the forefront of these developments, Yates & Associates is uniquely positioned to provide valuable insights and expert guidance to our clients. Our deep understanding of market trends, regulatory changes, and development opportunities ensures that we can offer strategic advice and services tailored to the unique needs of each project. Whether it's navigating the complexities of the current market, identifying potential development sites, or advising on investment strategies, our expertise in the SEQ and Northern NSW regions positions us as a key partner for property developers and investors aiming to capitalize on the evolving landscape of the property market.