I recently read in the latest API that because of the Draft Regional Plan for South East QLD, land is going to be a more finite resource than it already is. The plan wants to intensify the density of dwellings around certain areas… transport corridors, inner city suburbs etc.
Is land going to be a worthwhile investment over the next 5 years or is it going to be more like 20 years before this plan has a considerable effect on capital growth?
cheers Rick
Irrespective of the draft plan, an investment in land (ie existing dwelling and large block) in SEQ IMO is a good one. You can do a search on either south-east QLd or Gold Coast on the forum and there is plenty of previous discussion on this.
Bearing in mind that this is a draft plan and the wheels of government do turn slowly, so before it becomes law (and what ever the final plan is) might take a while. However most reaction has benn fairly positive, so one could assume, that the market would take some degree of direction and confidence about the broad thrust of the plan. This certainity might provide a filip for land pricing in the area in the short term.
My understanding is though, land is being or has been bought by large development companies throughout the area, so the possibility of buying land only, that has not been subdivided would be difficult. Others may have better information on this.
SEQ, especially the corridor down, from Brisbane to Ipswich and then through the GC is not a large area in relation to the proposed population shifts that the area is expected to see over the next 20 years.
If you look at a shorter time frame, CG potential will be more influenced by today’s current economic climate and where we are in the property cycle, however, long-term (5+ years), this would be a great area to invest in.
(I am somewhat biased as I already have am IP on the GC)
land banking is for very rich individuals or cash rich companies. The Japanese have been sitting on St Andrews (a large coastal area where they will build a new city) just north of Perth for 20 years roughly and it is only just starting to get close to making a start.
By all means take a punt on a beach house or something tho – a bit like a painting – enjoy it and you never one day it may be worth a fortune. otherwise make sure you can earn a decent income from it somehow.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
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