Gold Coast Land Price Beats Big Smoke

Gold Coast Land Price Beats Big Smoke

tweed

Tweed Area

It is not good news that Gold Coast land prices are more expensive or comparibly priced with Brisbane and Melbourne.  These high land values are evidence that there is much wrong in the Sunshine State in terms of delivering affordable housing to the population.  The lack of affordable housing increases the cost of living and creates social and economic pressures on communities.  Infrastructure Charges have for too long now been too high and out of step with the rest of the country.  The lack of land supply is also leading to the affordability crisis in Queensland.  Effective Planning reform is also required to reduce red tape and unnecessary regulation around delivering new stock to the market.  Arnold Development Consultants urges the new State Government to act as quickly as possible on:

  1. Reducing infrastructure charges;
  2. Fixing land supply issues through a review of the South East Queensland Regional Plan and;
  3. Fixing Queensland’s broken planning regime.

RESIDENTIAL land prices on the Gold Coast and Tweed are outstripping major centres including Brisbane and Melbourne, making the region one of the nation’s most expensive.

The Richmond-Tweed in northern New South Wales remains the most expensive regional residential land market in Australia, according to Housing Industry Australia figures.

The median price for residential blocks across the Tweed during the March quarter reached $240,000.

The Gold Coast was Australia’s third highest-priced market with a median price of $231,000, behind the Sunshine Coast at $235,000.

The Brisbane and Melbourne median prices were $215,000.

The Gold Coast is the most expensive non-metropolitan area in Australia per square metre with an average price of $392 just behind Brisbane at $400.

Richmond-Tweed is third most expensive with $342.

HIA Gold Coast executive director Cohn Buttenshaw blamed a shortage of land.

“The only available land is really at the northern end of the Coast at Coomera, west of the Ml, or across the border at Kings Forest or Cobaki Lakes,” he said.

“There is a land shortage by the beach because we’ve got such a narrow strip.

“We are in capital city values it shouldn’t be more than Melbourne. It’s harder for people to get a start.” Urban Development Institute of Australia Gold Coast president Stephen Harrison said infrastructure charges were making the region unaffordable.

“Over the past 10 years, and particularly the last five years, there has been a real loss of affordability caused by a lack of adequate land supply and the introduction of new infrastructure charges,” he said.

“The affordability has eroded and disappeared to the point where the Gold Coast is actually more expensive than a lot of places throughout Australia.” Mr Harrison said he was hopeful talks with the Gold Coast City Council would boost affordability.

“I believe one thing council are looking at is a reduction in infrastructure charges for a period of time, a tactic which has been used elsewhere such as Townsville,” he said.

Despite the high land prices, the HIA is predicting the Coast is on the cusp of a residential construction recovery.

Mr Buttenshaw said only about 2500 houses were being built each quarter.

Gold Coast Bulletin
By Tanya West-Horp
General News – Page 2
25 July 2012