Queensland developer CFMG Residential Communities will bring forward the release of $19 million worth of new homesites at the Arbourwood project at Morayfield on Brisbane’s north after 80% of the latest release at the project were sold out in a single weekend.
With buyer confidence continuing to improve following a cut in interest rates in February, CFMG Residential Communities released Stage 2a of Arbourwood on March 15, with 18 of 23 lots reserved by the end of the weekend.
The company will now bring forward the release of Stage 2b (24 lots) and Stage 2c (22 lots) to meet the demand created by expectations for more interest rate cuts this year. The new releases will include homesites ranging from 246 sqm to 434 sqm with an overall average land area of approximately 300 sqm. Prices at the new release at Arbourwood will start from $372,000.
The recently released UDIA State of the Land report showed SEQ land prices SEQ’s grew 11.5% to an average of $417,250 in 2024, which was the second-largest price growth recorded in the nation (after Perth) and kept this important greenfield market’s pricing in line with the national average.
According to the UDIA, South East Queensland recorded a 58% increase in lot sales in 2024 with 10,890 transactions, the second highest of any capital city market. Sales picked up across the year and peaked with the September quarter recording 3,009 net sales, double the volume recorded in June 2023.
The upturn in sales activity in SEQ was around twice the pace of growth achieved nationally, with SEQ averaging 28% of total sales activity across the nation – up from the decade average of 22%.
CFMG Capital General Manager Andrew Thomson said enquiry and sales for the new land have continued the strong momentum into 2025 and accelerated since February when the Reserve Bank of Australia announced its first rate cut since November 2020.
“There is more optimism in the air this year with many buyers becoming comfortable with interest rates while also hoping for a couple more cuts this year,” he said. “It has been a tough few years for new house and land buyers with limited availability and uncertainty of where rates were headed.”
“Buyers remain very focused on price and value for money with more affordable sites extremely popular, particularly with first home buyers looking to get out of the rental market.”
The Arbourwood project comprises nearly 250 lots in total, with more than 120 lots sold since the project was launched last year. CFMG Residential Communities acquired the sites for Arbourwood during 2021. The acquisition comprised six parcels on Anderson Road totalling just over 15 hectares of land about 40km north of Brisbane. The sites were purchased for a total of $16.4 million.
CFMG Residential Communities has successfully developed two previous projects – Oakland Pocket and Creeks Edge – in Morayfield and was confident Arbourwood would continue to attract strong interest.
“The project is surrounded by established residential homes; the local high school and primary school are less than two kilometres away; and the train station is about one kilometre north – so there will be plenty of interest from families looking to upgrade to a new home,” Mr Thomson said.
“Morayfield is a strong, reliable growth suburb with a range of family-friendly facilities and transport links,” Mr Thomson. “We think it is a really promising area that has the potential to be a star performer for buyers who get into the market at a good price.”