How has the acreage market performed over the last five years?

Published May 30 2023

As can be seen from the below graphs and figures, Belmont Gumdale, Chandler and Burbank have all performed exceptionally well over the last five years.

“Average annual growth rate (AAGR) is the average annualized return of an investment, portfolio, asset, or cash flow over time. AAGR is calculated by taking the simple arithmetic mean of a series of returns.” Investopedia

I’ve looked at the growth profiles of a range of suburbs across Brisbane and nothing I’ve seen compares to the growth shown here for Gumdale. It’s clear that people flocked towards the premium acreage market during covid. Like many other markets, we’ve now seen a drop off in the number of sales after a spike in the previous few years.

Since it’s likely that there’s still latent demand for acreage and few properties now on market, it seems reasonable that prices will stay high due to supply shortages. The below graph looks at the avegerage block size for all sales of 1 acre or more across the suburbs.

As can be seen above, most of the sales for Belmont, Chandler & Gumdale are around 1 hectare (10,000sqm), although Burbank is larger and the average block size has been increasing over recent years with 3 sales over 5 hectares in the last 12 months. This compares to 1 or less sales over 5 hectares in each of the previous 4 years. Considering that there are less than 10 sales in Burbank each year, this is a large proportion.

Chandler has remained relatively steady, with a slight upwards trend in terms the number of sales each year with approximately 20 sales while Gumdale and Belmont saw less sales in the last 12 months than they saw in any of the previous 4 years with 18 sales in Gumdale & 44 sales in Belmont over the last 12 months.

It will be interesting to see if we’ll see an uptick in the number of sales over the next few years while demand remains strong and the number of listings on market is low, which should ensure that prices remain high.

If you’re looking to buy or sell in this market and you’d like some further assistance, please feel free to reach out at chris.andersen@raywhite.com or 0424 682 636.