Analysis shows market running out of land

A recent meeting with Brian Forrester and David Wilson of Vision Surveys together with Christie Leet of PRDnationwide Whitsunday has revealed some startling news about the amount of vacant flat residential land left in Cannonvale.

The vacant land market in Cannonvale in 2016 saw five sales per month. The average price achieved was $154,471.

PRDnationwide Whitsunday recently released 9 lots in Parkers Road at $150 000 each and sold them all in a single day. This is an unprecedented result for land sales in the area, and shows that confidence is once again returning to the Whitsundays.

Overall, the Whitsundays is only just starting to see the signs of a rise in the market, after nine years of either negative or flat performance.

Current supply of developed land is approximately 39 lots, or less than one year’s supply based on last year’s figures. Consequently, we would expect the average price to continue to rise.

Lots available (developed) in Cannonvale are as follows:

Jessamine Close
5 lots remaining between 628sqm and 1097m2
(majority under 700m2)
with pricing between $165,000 and $192,000

Parkers Road acreage lots (2000m2) 4 remaining $185,000 to $242,500

Stages 5a and 5b Whitsunday Lakes
Approximately 20 lots remain, pricing achieved to date has been $170,000 to $180,000.

10 developed duplex lots in the Shelly Sands development remain unsold (not available on the market). Previous asking prices were between $200,000 and $240,000.

The beauty of the Whitsunday marketplace is that it’s very finitely defined and this enables developers to have a good understanding of upcoming competition in terms of both price and product mix. Our research indicates that the following are the only sites able to be developed in Cannonvale:

Lot 87 Hidden Court
7 land lots average price $155,000 expected Operational Works Approval obtained

Stage 6B Whitsunday Lakes
26 land lots. Operational Works Approval obtained

Stage 7 Whitsunday Lakes
29 land lots. Development Approval obtained

Stage 9 Whitsunday Lakes
29 land lots. Development Approval obtained

Corner Shute Harbour Road and Valley Drive
20 land lots. Development Approval obtained

The above figures total 111 potential land lots, which, to our knowledge, is all the residential land that can be developed in the suburb of Cannonvale. This also equates to 2 years further supply based on sales volumes achieved in a market that is yet to reach its spike.

In just 3 years we would expect Cannonvale to be totally built out. But the reality is this may happen sooner, as the local market is moving upwards and we would expect a rise in the amount of lots sold this year and next.