Land prices ever go down?

[rexilla99]

I am looking at buying land in the Sunnybank, Stretton, Calamvale area in Brisbane, The price start from 190k to 350k , the average price is 230k?

I was wondering if the average prices ever drop 10 to 20k or will they just remain level.

Land just seems to expensive.

members thoughts please.

 

[paulie]

Land prices ever go down?


No.

 

[Kristine..]

Yes.

Many areas have had fluctuating fortunes. There are some areas in Victoria where the local Council, in an effort to maintain population, is offering free blocks of land to people prepared to build and live there.

Rexilla99, at the prices you are quoting these are fully developed blocks of land and obviously in an 'exclusive' area.

Be aware that 'specialist residential' is more fragile than bog standard residential. The bread and butter stuff moves slower through the cycle but maintains value as it has a larger market base than the exec stuff does.

Lenders look at market times as well as volume of sales and value of sales.

I you are asking 'should I hold off buying until market prices fall' you may be waiting a long time.

If you are asking 'as an investor, what are the chances that my purchase may fall in value (as well as rise in value)' the answer is that the value does not depend on you, the value depends on the overall economy and the overall market.

The domestic housing market is huge, demand is huge and supply is limited. If you are buying where other people are buying, and there is lots of building activity going on, that's quite different from buying in a place where nothing much is going on and there is no real reason for new people to want to come into the area.

At the end of the day, 'You pays your money and you takes your chance' - there are no guarantees and no limiters, either.

Good luck

Kristine

 

[Michael Yardney]

Yes

Vacant land prices fluctuate more than house prices. During booms they rise faster than house prices - just see what is happening in W.A. Then during slumps, no one wants vacant land and values can definately drop

 

[rexilla99]

Thats correct I am looking at an exclusive area the blocks that were last sold went for 300k, I am thinking about putting in an offer of $230k but I am not sure if they are going to laugh at me and tell me to get lost.

Know of a person who brought a crappy weird shape block for $230k that was listed for $250k in the area that I am looking. Still its in a nice area.

 

[alexlee]

So if they laugh and tell you to get lost, so what? What have you lost? Just move on to the next property. Who knows, the might take your offer!

I remember reading the Reno Kings book and one passage said 'I got a call from an agent asking whether I was still serious about an offer I made a while ago, even though they laughed at me at the time'. The market can change quickly. Even if the agent laughs at you, leave them a card and say 'Well, if the vendor changes their mind give me a call.'
Alex

 

[The Y-man]

I am looking at buying land in the Sunnybank, Stretton, Calamvale area in Brisbane, The price start from 190k to 350k , the average price is 230k?

From (second hand info) what I hear, the area around Sunnybank, Sunnybank Hills, Robertson, Macgregor, have in recent times had some steep increases in prices due to wealthy Asians buying into the area (paying what is by their standards relatively "cheap" prices).

Cheers,

The Y-man

 

[rexilla99]

They are very cashed up some paying in full with cash. I guess they dont believe in debt.

 

[eggnog]

Hey Rex, do you live around here?


personally I think that buying land around here is a bit pricey but will hold value over the long term and show good steady CG. Its close to some of the best shopping malls in brisbane (Garden City, Sunnybank and all those specialty asian stores). It has a lot of great local schools. Excellent transport (bus comes every 10-15 min). Plus current houses around here are mostly owner occupiers of multi-million dollar houses (Just drive around sunnybank high, the avenue and the Mansions in stretton).

 

[The Y-man]

I guess they dont believe in debt.

Partly the reson I believe. The rest may be due to the way the whole "scheme" operates

Sorry, going to go off topic slightly

A foreign person would not be able to buy existing residential real estate.

The modus operandi is for a family who has already received their PR to act as a "sponsor" (the "Uncle").

Family #2 (overseas) sends their kids over to Australia to study, and cash is sent to the "Uncle" to buy a house for them to live in while studying (it just so happens to be a huge 5BR + study thing - well you do want them to be comfortable right?).

If all goes well, the kids finish studying and then apply for PR. Once they obtain their PR, they can now "buy" the property in their own names - so the title is transacted across.

Finally, once the kids have PR, it is much easier to bring the parents over, and to have PR granted for them. Now they can become "Uncles" too

Cheers,

The Y-man

 

[rexilla99]

Hey Rex, do you live around here?


personally I think that buying land around here is a bit pricey but will hold value over the long term and show good steady CG. Its close to some of the best shopping malls in Brisbane (Garden City, Sunnybank and all those specialty asian stores). It has a lot of great local schools. Excellent transport (bus comes every 10-15 min). Plus current houses around here are mostly owner occupiers of multi-million dollar houses (Just drive around sunnybank high, the avenue and the Mansions in stretton).

Yeah I live about 10 Min's from there, Stretton and the avenue are the places I am looking into at the moment. Yes I also think it will have good CG due to all the wealthy asians wanting to live in the same area and trying to builder bigger houses than the one next door. But also agree with you more with long term growth as its in a good location and near the city.

Also coz its also where I would like to live.

 

[Kennethkohsg]

Dear All,

1. Yes, I do recall reading in the news before that some builders and land speculators were reported as losing monies "speculating" on the vacant land release in the Coomera area, within the Goldcoast property market, losing as much as A$20,000 per piece of vacant land in 2004 when the market went flat "suddenly" after 2 successive interest rate increases were introduced to cool down the various booming property markets over in the Eastern States, in October and November 2003 respectively.

2. Will the same thing happens to the vacant land prices in certain suburbs within the Perth property market after the next third interest rate increase is expected to take place in November 2006?... or perhaps after a possible 4th interest rate increase in Feb 2007?

3. TIME will tell and confirm for us, in due course.

Cheers,
Kenneth KOH

 

[Dos]

Rex,

Is the reson for buying land to build the dream home on or for future investment? I live in the area and as you will have seen some of the houses that are going up are massive and very expensive. If you are looking for a ready made investment, IMHO I feel that somewhere like Algester offers good value. Established suburb and plenty of schools in it's own area. From what I am told, most places rent pretty easy too.....

Just my 2.2c worth though!!!

Dos

 

[sue78]

Hi Again,

Prices of land in this area won't drop. Asians generally prefer new houses and will rather pay $400k for a block of land and build than $500k for a nicer but older house.

The areas known as the 'dragon triangle' is sunnybank, macgregor, robertson, 8 mile plains, runcorn, kuraby and calamvale. Anything outside of this triangle is a bit harder to sell to asians. Th exeception is 8 mile plains area on the other side of logan rd near the bus exchange. Houses there are hard to sell.

You're right that chinese don't believe in debt and borrowing from the bank. We sold a house in Parkinson to a Location family who migrated up from Sydney and they paid cash. Even if you go into some of the asian r/e agents here and make an offer on a property they will often ask you if it's cash offer hahaha. But I really can't stand LJ Hooker Sunnybank....they're only really nice to you if you look rich.

If you can find land anywhere close to Macgregor Primary then you're practically guaranteed CG. It's one of the best primary schools in Brissy and even the richest Taiwanese families would rather send their kids there than private schools. There is only one block for sale atm 450 sqm for $300k. If you can fit a 50 sq house on 450 sqm block you'd do well. The waiting list for Macgregor Primary is long so asian famillies are willing to pay a lot to live in the catchment area. Thankfully my hubby is a teacher there already.

If you're talking about the land off Daw Rd marketed by PRD Nationwide (same company who has just sold off every block at the domain, Kuraby) then I know for a fact they won't budge on the price. Even $5k less unconditional got rejected.

There's one block in Regency Heights which is located in a culdesac of all built up homes. It's right at the top. It might be sold already but I think it was asking $350k. The house on the right is worth $1.4 mil and the house on the left is worth $1.2 mil. I think that's the most expensive house in the whole estate. Even if you build the worst house on the best street you will do well.

I am so happy I managed to build a brand new house in Kuraby for less than $300k. If we never afford Macgregor or Robertson we will always have Kuraby as a back up. As long as I live in QLD I want to live in this area forever.

You know that block of land opposite Bilo on the corner Warrigal rd and underwood Rd? it's asking 9 mil. Warrigal Farms is up for tender and will be developed next year. There's also a new estate in kuraby opposite Big W near Logan Rd. I am very interested because they're currently re-developing Woolies and Big W and living there would be so convenient.

If you do find cheap land here you will need to think twice about why it is cheap and no one has bought it. Chinese people would rather for $350k for a block of land in a nice estate/street than $200k for one just down the road but on an older street. There is a house in runcorn next to the station on a large block of land that cannot sell for years. I don't know anyone that would even pay $100k for it because it's between the train tracks and beenleigh rd.

If you are in the area I highly recommend the restaurant Yahoo just opened at Yong Complex in Sunnybank Hills.

 

[sue78]

Plus current houses around here are mostly owner occupiers of multi-million dollar houses (Just drive around sunnybank high, the avenue and the Mansions in stretton).

and Macgregor Park. I think that's the best of all. I have some friends that live in those multi mil dollar mansions. It's ridiculous, the master bedroom is like the size of a small house!

I am not sure about the Avenue. People in there bought their land for relatively cheap and now it's about $350k to $400k. My concern is why it has taken so long to sell. I think maybe because it's backing onto Beaudesert Rd and also the streets are very small and some have entry. I know that LJ Hooker try ti get the people who buy the land to build with asian builders. The ones who build those massive mansions.

We went to have a look at the builders house and he even has a maid's quarter omg, even the maid's quarter is so nice. Hmmmmm I wonder how he sneaked in a maid.

Doesn't anyone think some of those mansions are just distasteful? there's like no grass area at all...the entire outside area is paved and the house is built practically up the maximum area allowed.

 

[rexilla99]

Rex,

Is the reson for buying land to build the dream home on or for future investment? I live in the area and as you will have seen some of the houses that are going up are massive and very expensive. If you are looking for a ready made investment, IMHO I feel that somewhere like Algester offers good value. Established suburb and plenty of schools in it's own area. From what I am told, most places rent pretty easy too.....

Just my 2.2c worth though!!!

Dos

Yep, its for my dream home. Also as investment as well.