Residential land development activity profile, September quarter 2016 Townsville City The residential land development activity profile for Townsville City, hereafter referred to as Townsville, provides a comprehensive summary of recent residential land development and dwelling activity indicators within the local government area. Topics covered include broadhectare land supply, uncompleted lots (approvals, operational works, and certifications), lot registrations, lot sales, dwelling sales and dwelling approvals (Figure 1). Broadhectare land supply Broadhectare land refers to residential greenfield and brownfield land (greater than 2,500 m²) that is currently suitable for residential development. The latest broadhectare results show that there were approximately 6,440 hectares of broadhectare land suitable for residential development in Townsville. Based on the planning scheme intent, existing approvals, and an analysis of residential densities by location, this supply is expected to yield some 45,000 dwellings. This yield takes into account ownership and land fragmentation issues which often reduce the yield. Residential lot approvals Before residential lots can be created, an applicant must first obtain a development permit approval for reconfiguring a lot (RaL) from the local government authority. In the year to September quarter 2016, council approved the development of 586 residential lots. This was a decrease of 27 per cent compared with the same period last year when 808 lots were approved. Figure 2 compares quarterly lot approvals in Townsville over a number of years. Figure 1: Residential land development stages Broadhectare land Material change of use (where required) Uncompleted lot (closing stock of approvals) Lot approval (reconfiguring a lot) Operational works Lot registration Land sale Dwelling approval Lot production (lot certification) Small projects Figure 2: Quarterly residential lot development activity, Townsville City Number of lots Operational works Lots approved 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Quarter Lots certified Dwelling occupancy Figure 3: Lot approvals by type, Townsville City Structure of residential lot approvals In the year ending September quarter 2016, almost all of the lots approved for development in Townsville were at urban densities (Figure 3). During this period, 26 lots were approved at rural residential densities as described in the planning scheme. Rural residential Urban 2,500 Number of lots 2,000 Table 1 shows that the 586 lots approved for development in Townsville during the year ending September quarter 2016 were within 47 development projects. Projects approved to produce over 50 lots per project represented 9 per cent of the projects approved during this period, while accounting for 71 per cent of the total lots approved (Figure 4). 1,500 1,000 500 0 Year to September Table 1: Lot approvals by project size, Townsville City Size of development project Year ending September smaller projects larger projects 1 to 2 lots 3 to 5 lots 6 to 10 lots Total (Total lots projects) Total (Total lots projects) Total (Total lots projects) 11 to 20 lots All project sizes 21 to 50 lots Over 50 lots Total (Total lots projects) Total (Total lots projects) Total (Total lots projects) Total (Total lots projects) 2008 54 (48) 24 (7) 33 (4) 103 (6) 999 (30) 384 (5) 1,597 (100) 2009 51 (43) 41 (11) 29 (4) 52 (4) 328 (10) 956 (8) 1,457 (80) 2010 40 (36) 18 (5) 22 (3) 58 (4) 24 (1) 1,331 (8) 1,493 (57) 2011 24 (20) 10 (3) 21 (3) 66 (4) 276 (9) 1,757 (5) 2,154 (44) 2012 38 (34) 7 (2) 16 (2) 74 (5) 226 (7) 589 (5) 950 (55) 2013 33 (31) 22 (6) 0 (0) 80 (5) 386 (12) 1,226 (14) 1,747 (68) 2014 47 (44) 13 (3) 0 (0) 14 (1) 60 (2) 1,081 (6) 1,215 (56) 2015 32 (30) 3 (1) 25 (3) 24 (2) 261 (7) 463 (5) 808 (48) 2016 37 (34) 9 (3) 17 (2) 12 (1) 96 (3) 415 (4) 586 (47) Dec qtr 2015 11 (9) 3 (1) 0 (0) 12 (1) 0 (0) 138 (1) 164 (12) Mar qtr 2016 10 (10) 3 (1) 10 (1) 0 (0) 24 (1) 91 (1) 138 (14) Jun qtr 2016 3 (3) 3 (1) 7 (1) 0 (0) 0 (0) 0 (0) 13 (5) Sep qtr 2016 13 (12) 0 (0) 0 (0) 0 (0) 72 (2) 186 (2) 271 (16) Figure 4: Lot approvals by project size, year ending September 2016, Townsville City Percentage Lots approved Projects approved 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 to 2 lots 3 to 5 lots 6 to 10 lots 11 to 20 lots 21 to 50 lots Over 50 lots Size of development project Residential land development activity profile, Townsville City, September quarter 2016 2 Operational works approvals Before an approved development proceeds, detailed engineering drawings and specifications for civil engineering and landscaping (or "operational works") must be approved by council. Such works may not be required for small projects. In the year to September quarter 2016, council gave operational works approvals for the development of 587 lots (Table 2). The total stock of lots with current operational works approvals at the end of September quarter 2016 was 1,725 lots. These lots represent approved land that is most likely to be developed in the short term and accounted for 28 per cent of the 6,088 uncompleted lots in the pipeline (Table 3 and Figure 5). Table 2: Uncompleted residential lots¹, Townsville City Year to September Opening stock (a) Lots approved (b) Operational works approvals Lots certified (c) Lots lapsed (d) 2008 5,069 1,597 1,763 2009 4,675 1,457 2010 5,002 1,493 2011 5,091 2012 Closing stock (a+b-c-d) 1,936 55 4,675 697 969 161 5,002 974 1,039 365 5,091 2,154 796 939 104 6,202 6,202 950 931 947 279 5,926 2013 5,926 1,747 916 1,081 404 6,188 2014 6,188 1,215 979 1,093 26 6,284 2015 6,284 808 791 883 62 6,147 2016 6,147 586 587 597 48 6,088 Dec qtr 2015 6,147 164 188 116 2 6,193 Mar qtr 2016 6,193 138 39 230 32 6,069 Jun qtr 2016 6,069 13 120 79 11 5,992 Sep qtr 2016 5,992 271 240 172 3 6,088 1) Uncompleted lots are lots with a RaL development permit approval but have not proceeded to survey plan certification. Figure 5: Stock of approved lots by type, Townsville City Table 3: Stock of approved lots by type, Townsville City Closing stock of lots Percentage with RaL development Operational works operational works approval approval approval Dec qtr 2013 6,468 1,542 24% Mar qtr 2014 6,232 1,732 28% Jun qtr 2014 6,286 1,691 27% Sep qtr 2014 6,284 1,620 26% Dec qtr 2014 6,572 1,568 24% Mar qtr 2015 6,406 1,573 25% Jun qtr 2015 6,255 1,628 26% Sep qtr 2015 6,147 1,623 26% Dec qtr 2015 6,193 1,697 27% Mar qtr 2016 6,069 1,543 25% Jun qtr 2016 5,992 1,614 27% Sep qtr 2016 6,088 1,725 28% Closing stock of lots with RaL development approval Stock of lots with operational works approval 7,000 6,000 5,000 Number of lots Quarter 4,000 3,000 2,000 1,000 0 Residential land development activity profile, Townsville City, September quarter 2016 2014 2015 2016 Year ending September 3 Lot production (lot certification) Once council is satisfied with all aspects of the development being implemented, it will then issue a certificate of compliance. In total, 597 residential lots were certified by council in the year to September quarter 2016 (Table 2). Compared with the previous year when 883 lots were certified, this represented a decrease of 32 per cent. Lots lapsed Lots lapsed refers to the number of lots that receive approval by council, but are not developed or certified by the council within the prescribed period (allowing for time extensions if applicable). Lots lapsed also include previously approved lots that are not expected to proceed due to new or amended approvals (obsolete lots). In the year to September quarter 2016, 48 lots previously approved for development had lapsed in Townsville. Closing stock The total stock of approved lots that are uncompleted is adjusted to take into consideration lots approved, certified and lapsed during the reporting period. Table 2 shows that at the end of September quarter 2016, Townsville still had active approvals for the development of 6,088 new residential lots. It is expected, however, that some developments will not proceed and a number of approvals will subsequently lapse or be amended. Lot registrations New lots within plans certified by council do not legally exist until the titles have been registered by the Department of Natural Resources and Mines. This registration is the final stage in the development of new lots. The number of urban lots registered in Townsville during September quarter 2016 increased by 12 per cent to 149 registrations compared with 133 registrations recorded in the previous quarter (Table 4 and Figure 6). Total lot registrations for the year ending September 2016 were down 52 per cent compared with the previous year. Table 5 categorises the standard lots registered in Townsville by lot size. Table 4: Lot registrations, Townsville City Urban residential lot registrations Median lot size Standard lots September 60m² to <2,500m² 2008 1,640 2009 917 2010 1,139 298 1,437 33 1,470 602m² 2011 913 153 1,066 73 1,139 626m² 2012 1,001 129 1,130 32 1,162 570m² 2013 1,054 98 1,152 31 1,183 540m² 2014 972 385 1,357 32 1,389 520m² 2015 742 262 1,004 93 1,097 531m² 2016 400 100 500 30 530 506m² Dec qtr 2015 49 22 71 16 87 487m² Mar qtr 2016 137 10 147 1 148 417m² Jun qtr 2016 83 50 133 4 137 490m² Sep qtr 2016 131 18 149 9 158 576m² a Unit and Low density Year to Total lot registrations Total lot Standard lots urban lots 2,500m² to 5ha registrations 60m² to <2,500m² 621 2,261 107 2,368 638m² 658 1,575 125 1,700 634m² townhouse lots b a a) Lots on a standard format plan intended for detached dwellings, including lots intended for detached dwellings in a community title scheme. b) Lots on a building format plan or standard format plan that represent attached dwellings within a community title scheme. Residential land development activity profile, Townsville City, September quarter 2016 4 Table 5: Standard lot registrations ͣ by size, Townsville City Standard lot registrations by lot size category Year to September 60m² to <200m² 200m² to <350m² 350m² to <450m² 450m² to <600m² 600m² 800m² 1,000m² 2,500m² 4,000m² to <800m² to <1,000m² to <2,500m² to <4,000m² to 5ha Total standard registrations 60m² to 5ha 2008 0 0 49 521 873 102 95 2 105 1,747 2009 0 0 51 293 456 76 41 4 121 1,042 2010 0 0 57 496 438 89 59 7 26 1,172 2011 0 0 29 351 426 81 26 11 62 986 2012 0 14 134 395 349 56 53 7 25 1,033 2013 17 48 175 415 300 65 34 15 16 1,085 2014 16 41 190 385 221 50 69 9 23 1,004 2015 0 0 184 283 178 38 59 14 79 835 2016 23 19 97 118 83 23 37 12 18 430 Dec qtr 2015 2 0 17 16 9 0 5 4 12 65 Mar qtr 2016 21 19 35 11 28 5 18 0 1 138 Jun qtr 2016 0 0 20 46 11 2 4 2 2 87 Sep qtr 2016 0 0 25 45 35 16 10 6 3 140 a) Lots on a standard format plan intended for detached dwellings, including lots intended for detached dwellings in a community title scheme. Figure 6: Quarterly standard lot registrations by size, Townsville City Standard lot registrations 60m² to <450m² 450m² to <800m² 800m² to <2,500m² 2,500m² to 5ha 600 500 Number of lots 400 300 200 100 0 Quarter Residential land development activity profile, Townsville City, September quarter 2016 5 New lot sales (includes house and land packages) In the year ending September quarter 2016, there were 628 new lots sold in Townsville, of which 437 were vacant (Table 6). The remaining 191 lots were either part of a developer house and land package sale or consisted of an existing dwelling that was sold after subdivision of a parent parcel. In the year ending September quarter 2016, the median sale price of vacant land in Townsville was $155,000. This represented a decrease of 3 per cent in median value compared with the previous year (Table 6). Quarterly vacant land sales for Townsville are shown in Figure 7. Table 6: Sales of new lots, Townsville City Number of new lot sales a (140m² to 2,500m²) Year to September Vacant land c 2008 1,244 2009 2010 House & land package d Total Median sale price b (140m² to 2,500m²) House & land package d Median price per m² Vacant land bc sales Vacant land c 198 1,442 $167,000 $424,998 $268 1,114 373 1,487 $164,900 $410,000 $253 1,134 284 1,418 $164,000 $425,000 $263 2011 869 402 1,271 $162,000 $415,000 $270 2012 1,045 295 1,340 $161,000 $408,370 $271 2013 1,001 321 1,322 $160,000 $423,428 $283 2014 983 293 1,276 $163,000 $418,750 $290 (140m² to 2,500m²) 2015 646 206 852 $159,500 $398,000 $291 2016p 437 191 628 $155,000 $410,000 $286 Dec qtr 2015 124 73 197 $158,000 $412,200 $273 Mar qtr 2016 92 41 133 $160,000 $400,000 $270 Jun qtr 2016 108 41 149 $150,000 $420,000 $298 Sep qtr 2016p 113 36 149 $151,500 $395,000 $296 p = preliminary; subject to revision as a number of sale contracts may not have reached settlement at time of data collection. a) Normal sales and multi-sale transactions. Excludes part-sales and sales made under other special circumstances. b) Normal sale transactions. Excludes multi-sales, part-sales and sales made under other special circumstances. c) May include resales of vacant land. Excludes intermediate vacant land transactions relating to developer house and land package sales. d) Includes lots as a component of a developer house and land package in addition to subdivided lots containing an existing dwelling. Figure 7: Quarterly vacant land sales, Townsville City Sale price b Lowest quartile Median Highest quartile $250,000 600 500 Sale price $200,000 400 $150,000 300 $100,000 200 $50,000 Number of sales Number of sales ª 100 0 $0 Quarter p = preliminary; subject to revision as a number of sale contracts may not have reached settlement at time of data collection. a) Normal sales and multi-sale transactions. Excludes part-sales and sales made under other special circumstances. b) Normal sale transactions. Excludes multi-sales, part-sales and sales made under other special circumstances. Residential land development activity profile, Townsville City, September quarter 2016 6 Dwelling sales In the year ending September quarter 2016, there were 2,969 new and established dwellings sold in Townsville. Of these dwellings, 2,413 (81 per cent) were detached houses (Table 7). In September quarter 2016, 596 detached house sales were recorded with a median value of $335,000. This was a decrease of 11 per cent in dwelling sales volume and a decrease of 4 per cent in median value compared with the same quarter last year (Figure 8). Table 7: Dwelling sales, Townsville City Number of dwelling sales a Year to September Detached houses Median sale price b Units & townhouses Total dwellings Detached houses Units & townhouses 2008 3,319 1,149 4,468 $369,000 $327,500 2009 3,427 1,071 4,498 $363,535 $320,000 2010 2,953 789 3,742 $380,000 $340,000 2011 2,657 626 3,283 $375,000 $330,000 2012 2,739 841 3,580 $365,000 $320,000 2013 2,859 709 3,568 $366,000 $312,000 2014 2,801 784 3,585 $365,000 $289,000 2015 2,657 703 3,360 $355,000 $295,000 2016 2,413 556 2,969 $342,000 $280,000 Dec qtr 2015 654 172 826 $355,000 $310,000 Mar qtr 2016 596 129 725 $340,000 $285,000 Jun qtr 2016 567 135 702 $340,000 $275,000 Sep qtr 2016 596 120 716 $335,000 $257,500 a) Normal sales and multi-sale transactions. Excludes part-sales and sales made under other special circumstances. b) Normal sale transactions. Excludes multi-sales, part-sales and sales made under other special circumstances. Figure 8: Quarterly detached house sales, Townsville City Sale price b Lowest quartile Median Highest quartile $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 1,200 1,000 800 600 400 Number of sales Sale price Number of sales ª 200 0 Quarter a) Normal sales and multi-sale transactions. Excludes part-sales and sales made under other special circumstances. b) Normal sale transactions. Excludes multi-sales, part-sales and sales made under other special circumstances. Residential land development activity profile, Townsville City, September quarter 2016 7 Dwelling approvals In the year ending September quarter 2016, Townsville recorded a 36 per cent decrease in residential dwelling approvals compared with the previous year. There was a total of 846 approvals (81 per cent of which were for separate houses) compared with 1,321 approvals in the year ending September 2015 (Table 8 and Figure 9). Top local government areas for development activity Table 9 displays the top 10 local government areas in Queensland for several development activity indicators for the year ending September 2016. The table shows that a considerable amount of the state's development activity is occurring in the local government areas of Gold Coast City, Brisbane City, Moreton Bay Regional Council, Ipswich City and Sunshine Coast Regional Council. Figure 9: Dwelling approvals by type, Townsville City Table 8: Dwelling approvals by type, Townsville City Number of dwellings Year to Houses September Houses Other Total 2009 1,237 175 1,412 1,800 2010 1,331 361 1,692 1,600 2011 1,103 277 1,380 2012 1,267 259 1,526 2013 1,207 269 1,476 2014 1,232 545 1,777 2015 983 338 1,321 2016 688 158 846 Dec qtr 2015 177 49 226 Mar qtr 2016 153 32 185 Jun qtr 2016 181 20 201 Sep qtr 2016 177 57 234 Other Number of dw ellings 2,000 1,400 1,200 1,000 800 600 400 200 0 Year ending September Table 9: Top local government areas for development activity in Queensland, year ending September 2016 Rank Lot approvals Local government area 1 Moreton Bay (R) Standard lot registrations No. 3,899 Local government area Gold Coast (C) No. 3,126 New lot sales (p) Local government area Detached dwelling approvals ¹ No. Local government area No. Gold Coast (C) 2,892 Gold Coast (C) 3,890 2 Ipswich (C) 3,188 Brisbane (C) 2,691 Brisbane (C) 2,293 Brisbane (C) 3,243 3 Logan (C) 2,793 Ipswich (C) 2,504 Moreton Bay (R) 2,091 Sunshine Coast (R) 2,800 4 Brisbane (C) 2,216 Moreton Bay (R) 1,972 Ipswich (C) 2,084 Moreton Bay (R) 2,713 5 Gold Coast (C) 2,037 Sunshine Coast (R) 1,847 Sunshine Coast (R) 1,990 Ipswich (C) 2,244 1,479 Logan (C) 1,022 Logan (C) 1,198 6 Toowoomba (R) Logan (C) 2,020 7 Sunshine Coast (R) 968 Redland (C) 977 Redland (C) 864 Redland (C) 1,019 8 Cairns (R) 677 Cairns (R) 428 Cairns (R) 704 Toowoomba (R) 827 9 Fraser Coast (R) 663 Toowoomba (R) 425 Townsville (C) 628 Fraser Coast (R) 689 10 Townsville (C) 586 Fraser Coast (R) 407 Fraser Coast (R) 616 Townsville (C) 688 1) Detached dwelling approvals can occur on existing lots and are not directly comparable with new lot approvals, registrations and sales. (p) = Preliminary (C) = City (R) = Regional Council Note: Previous editions of this profile are not directly comparable due to ongoing data revisions and indicator classification adjustments. For the latest time series data, please refer to our online residential development data tables via the link below. Residential development data tables are available for download on the QGSO website: www.qgso.qld.gov.au/products/tables/res-land-devel-indicators Queensland Government Statistician’s Office Queensland Treasury www.qgso.qld.gov.au Sources for the Residential land development activity profile: ABS 8731.0, Building Approvals, Australia, September 2016; DNRM Digital Cadastral Database (DCDB); QGSO uncompleted lots database; QGSO Broadhectare Study; DNRM QVAS database. http://creativecommons.org/licenses/by/4.0/ © The State of Queensland (Queensland Treasury) 2017 Residential land development activity profile, Townsville City, September quarter 2016 8
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