- CFMG Capital have locked in over 350 land sales since the new year began
- Sales showcase SEQ's strong demand for land, underpinned by affordability and migration factors
- Company spent $60M on acquiring development sites in second half of 2021, with project pipeline now worth more than $600M
Queensland-based funds management group CFMG Capital has announced it has locked in more than 350 land sales since the beginning of 2022.
The achievement is indicative of the major land boom occurring across South East Queensland’s growth corridor, causing significant land supply shortages.
CFMG has launched three new projects in the area since the beginning of the new year; Pumicestone Pocket, Farriers Creek and Birchwood.
Affordability and strong migration underpinning demand
CFMG Capital General Manager Andrew Thomson said the sales reflected a strongly performing Queensland land market, which began booming in mid 2020 when the Federal Government’s Homebuilder grant was announced.
“CFMG, along with other developers, are really struggling to keep up with demand with every release we make being absorbed by the market very quickly,” he said.
“Everyone from first home buyers to upgraders, investors and interstate migrants are all active in the market which has created a very competitive environment.”
Andrew Thomson, CFMG Capital General Manager
While he acknowledged a strong combination of factors underpinned the demand, Mr Thomson said Queensland’s relative affordability was a key driver.
Migration is also a crucial factor. Migration into Queensland has reached its strongest levels in years, causing a peak in demand that new home builds are struggling to service.
“Queensland’s population is continuing to grow thanks to strong migration from southern states which added into natural population growth is creating a real shortage of land.”
Andrew Thomson, CFMG Capital General Manager
“Supply is also considerably constrained as developers deal with a raft of issues including weather delays, local government bureaucracy and access to construction workers and materials,” said Mr Thomson.
CFMG Capital spent $60 million on the acquisition of development sites around South East Queensland and Melbourne during the second half of 2021.
The company’s total project pipeline is now worth more than $600 million, consisting of over 2,000 allotments.
