New research conducted by property services group Oliver Hume has revealed that Ipswich has experienced a significant increase in the median price for new land, rising by 10.2% in 2024. In the December quarter alone, new land prices in Ipswich LGA rose by 2.2% to reach a median price of $368,000, with a total of 452 homesites sold.
Following closely behind Ipswich is Logan LGA, where 336 homesites were sold at a median price of $376,875. Despite the similar median price, buyers in Logan were able to secure larger homesites, with a median size of 463 square meters compared to 400 square meters in Ipswich. Moreton Bay rounded off the top three, with a median land price of $416,000 and a median size of 398 square meters.
According to Matt Bell, the chief economist at Oliver Hume, the current land market has been driven by affordability. He stated, “The South-East Queensland market remains relatively healthy with good fundamentals around population and economic growth.” Bell also highlighted the surge in land buyer activity in Ipswich, with 18 homesites worth over $5.8 million sold in less than 48 hours by ID_Land’s Dawn Walloon project. These lots were purchased by a mix of first home buyers, upgraders, and interstate buyers, with an average price point of $325,000.
The growth in land prices is not limited to Ipswich alone. Australian land prices as a whole increased by 7.6% in 2024, more than twice the rate of the Australian Bureau of Statistics (ABS) consumer price index (CPI) and five times faster than building material costs. In the September quarter of 2024, the median price of a lot sold nationwide was $366,510. Capital cities have been driving the increase in land prices, with a median price growth of 9.2% compared to 2023, reaching $408,160.
Brisbane has seen one of the strongest growth rates in median land prices, rising by 21.2% over the past 12 months. In the December quarter, Brisbane’s median land prices reached $716,000. In comparison, regional areas across the country have remained more affordable, with a median price of $281,910 in 2024.
Bell also mentioned that the recent decision by the Reserve Bank of Australia to cut interest rates by 0.25 percentage points will likely attract more buyers to the South-East Queensland market. While this rate cut may not have a significant direct impact on affordability, the shift into the easing cycle could have a more substantial effect on activity, as consumers factor in potential future rate cuts into their housing budgets. Since late January, there has already been an increase in levels of enquiry and activity due to rate cut expectations.
Looking ahead, it is expected that prices across the south-east will experience moderate growth this year as more supply comes to the market. The combination of affordability, population growth, and economic stability makes the South-East Queensland property market an attractive option for both investors and homebuyers.
