News

May 29, 2015 | IN Media Release and News | BY AVID | 3 min read

INSATIABLE demand for housing in the picturesque Redlands region is driving property prices up and placing pressure on the bayside area’s constrained housing supply, according to new research.

The National Property Research Co report reveals the demand-supply dynamic in the popular Redlands City Council catchment has driven the median house price up by more than 200 per cent since 2000.

It finds that over the same period, 92 per cent of resales in the area achieved a capital gain averaging between $32,000 and $155,000 after an average hold of just over four years.

Report author Matt Gross said the area’s amenities, convenience and natural beauty – courtesy of its abundance of high quality agricultural land and its frontage to Moreton Bay – continued to draw new residents.

His report reveals the region’s population is flourishing and is expected to rise 38 per cent to almost 200,000 people by 2036, requiring a further 20,200 homes to be built.

“The demand to live in Redlands continues to increase as society in general has a higher appreciation of living in attractive natural environments,” he said.

“As many families have no desire to live in high rises but choose to live in residential areas that have prominent and prolific parks, good quality schools, it is no wonder that the population growth rate is likely to outstrip the region’s capacity to supply it.”

Mr Gross said while land prices had grown on average 9.7 per cent a year, sales volumes had declined as land supply remained limited.

“This trend is expected to continue unless significant adjustments to the urban boundary are made in the SEQ Regional Plan,” he said.

“If this fails to occur, Redlands land prices will escalate to a point where affordability is seriously questioned.”

A number of developers have identified the area’s residential appeal including leading Queensland property company Villa World which has a $500 million-plus workbook active in the Redlands.

Managing director Craig Treasure said Villa World had entered the region with its highly successful Mt Cotton Village community and had embarked on a further three estates since.

Underscoring its ongoing commitment to Redlands, the company recently has paid $10.5 million for a development site to augment its Waterline community at Thornlands.

“We continue to invest in this region because clearly this is where people want to live,” he said.

“Villa World is all about providing quality yet affordable living options in sought after locations like Redlands.

“This is a prosperous and attractive location with huge growth potential and it makes sense for Villa World to have a strong presence here.”

Mr Gross’s report also revealed that strong local employment opportunities in the region contributed to its unemployment rate of just 4.5 per cent, comparing favourably to Brisbane on 5.2 per cent and Queensland at 6.5 per cent.

The Redlands is also serviced by four major retail centres with a combined floor area of more than 110,000sqm.

“In this respect there is very little that cannot be sourced from within the council area,” states the report.

“In addition, all of these centres are hubs for public transport, inclusive of the train at Cleveland.”

Villa World’s other communities in the Redlands are East Ridge at Thornlands and Era in Capalaba.

Mr Gross recently presented his report’s findings at information nights at the Mt Cotton Village and Era communities.

Established in 1986, Villa World is Queensland’s oldest ASX-listed developer and one of Australia’s largest housing providers.