QLD Development News
HIGH DEMAND FOR LAND LEASE COMMUNITY SITES IN QLD
Renders of the approved triple-tower development at Newstead.
The LLC sector has evolved significantly from its origins in caravan parks to become a competitive alternative to traditional retirement villages and modern senior living arrangements. These communities provide an affordable housing option, with homes typically costing 60-70 per cent of the median house price in the surrounding area, allowing retirees to downsize and free up equity. Colliers Queensland Residential Development Sites division has teamed up with the Healthcare and Retirement Living division transacting a number of significant Land Lease Community (LLC) deals across the state with no sign of the trend slowing down. Some of these recent deals by Colliers Queensland include the $29,965,380 transaction of a 27.99ha development site at Heritage Park to a Queensland based LLC developer, the $25,000,000 transaction of a 20.37ha land parcel at Chambers Flat to an established LLC operator and the sale of a 12ha site at Flagstone to a new operator to the LLC market. LLCs continue to offer competitive returns, with current yields ranging between 4.5–7 per cent, and as demand continues to outstrip supply, yields are likely to tighten further, making LLCs an attractive investment option. Market appetite and demand for both existing LLC assets and greenfield assets are expected to remain high in the short to medium term. High demand for development sites from Land Lease Community (LLC) operators, being driven by Australia’s aging population and downsizing baby boomers, has made Queensland an LLC hotspot according to Colliers experts.
72 – February / March 2025
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