Vacant land appeals in Whitsunday as buyers note price discrepancy
A price discrepancy of up to 25 per cent between vacant land in the Whitsunday Area and that of comparable lots in neighbouring cities of Gladstone and Mackay has prompted an increase in activity as buyers look to purchase their piece of Australia for a seemingly discounted rate.
The median price for land in the Whitsunday Area for the six month period to August 2013 is $154,750, down almost six per cent from levels experienced at the height of the market in 2007 and significantly less expensive than blocks offered in the more densely populated regional centres.
PRDnationwide Research Analyst Angus McLean said that statistical analysis revealed that the Whitsunday property market had bottomed out and in particular, house and land product looked set to rebound.
“Irrespective of the volatility witnessed in more recent years; a key finding recorded in the Whitsunday Area market was the ten year annual median price growth rate for House (5.2%), Unit (5.0%) and Vacant Land (6.5%) all trended positively suggesting no significant heartache for the patient long term investor,” he said.
“The amount of development planned and construction work taking place is a positive sign for the region and with land prices dramatically down on neighbouring regional centres, there are a number of good investment opportunities.”
Mr Mclean noted that the vacant land market in the Whitsunday Area had been undersupplied since 2008, but a number of master-planned developments and the comparable affordability of land should produce a further positive shift in sales.
PRDnationwide Whitsunday Principal Christie Leet agreed that sentiment had improved and sales activity was expected to improve through the New Year.
“There are currently 14 estates in various stages of construction, which when finished will bring a further 321 allotments on to the market,” Mr Leet said.
“Approximately half of these allotments have sold off the plan, dramatically increasing sales velocity within the Whitsunday Area and providing upside for the seller.”
“The haste in which stock is being acquired suggests a short term under supply as stock continues to attract new buyers. Similarly, with values currently $70,000 cheaper than those in Mackay and Gladstone, we expected to see a significant increase in price in the Whitsunday Area.”
Published on November 28, 2013