Key points
- Land banking means buying land and holding it for future growth, rezoning or development.
- Land bankers often look at growth corridors and areas earmarked for future development.
- Holding costs, zoning and timeframes are key considerations for buyers.
Land banking in simple terms
Land banking is the strategy of buying land and holding it, often for several years, in the expectation that it will become more valuable. This might be due to population growth, new infrastructure, rezoning or future development.
Who buys land to hold?
- Private investors with a long-term horizon
- Developers building a pipeline of future sites
- Builders securing land for future projects
- Overseas investors, subject to Australia's foreign investment rules
What land bankers look for
- Location in or near a growth corridor
- Planned infrastructure such as transport, schools and town centres
- Zoning and the potential for future rezoning
- Land size, access and services
- Manageable holding costs such as rates and land tax
Selling to a land banking investor
If you own land in a growth area, or have bought land in an estate that has not yet titled, land banking investors may be a strong buyer pool. Our network includes local and overseas land banking investors, and our agents can help position your land for them.
Foreign persons buying vacant residential land in Australia generally need approval and are typically required to develop the land within a set timeframe. See our overseas buyers guide.
This guide is general information only and doesn't consider your circumstances. It is not legal, tax or financial advice.