According to The Australian Financial Review recently, builders of houses in south-east Queensland are enjoying the best conditions in six years because banks are opening up funding and buyers are looking to take advantage of the value in house and land packages.
In the month of December, 2155 more houses were approved for building in Queensland, up 13.4 per cent in November and the biggest month since January 2010, according to the Australian Bureau of Statistics.
And while the Housing Industry Association's New Home Sales Report, which surveys Australia's largest volume builders, showed a third consecutive decline nationally, Queensland bucked the trend, rising 8 per cent.
Listed and private builders are reporting strong sales. AV Jennings reported on Monday that it had booked a 39.2 per cent increase in interim profit with Queensland being among the best of the states.
While Villa World has just spent another $32 million buying land south of Brisbane for another 726 lots as it gears up its exposure to south-east Queensland.
"We see Brisbane in the process of catching up to where the other states have been – the only question is whether the state can keep up the jobs growth," said Villa World managing director Craig Treasure.
"There has been no trouble following the change in macro prudential regulation on bank lending and the low interest rates are helping owner occupiers. I can also say that there are very few people in the north and south of Brisbane who want to downsize into an apartment close to the city. They still want a backyard."
Smaller new builders are entering the market and enjoying the business.
Tessa Build, founded by Brendan Tutt and Chris Vitale, expect to construct 200 new homes this year.
"We have started 24 builds over the last 12 weeks," Mr Tutt said. "What we are seeing now is a balanced shift and growing interest in detached housing.
"Brisbane will traditionally follow Sydney trends eventually and what we are seeing now is true to this, the reality is our market in Brisbane still has a very strong medium term outlook and we believe stock quality, builder and local knowledge are going to be the key."
Mr Tutt said banks had also been more open to fund land developments.
"Land developments can be a long process and banks can look at them with caution but the banks now have a stronger appetite for land."
Director for Ray White land marketing Jamie Martin said the demand from builders and developers for marketing and sales was on the rise because of more buying activity.
"We are continuing to see strong buyer demand for vacant land lots in south-east Queensland and an increase in lot registrations across Brisbane, Gold Coast, Ipswich, Logan, Moreton Bay, Redlands and the Sunshine Coast," Mr Martin said.
If you want to read this article in Japanese, please see the following link:
Subscribe to our English Newsletter