Queensland Property Market Shifts: Potential Land Shortage on the Horizon

According to a report in The Courier-Mail, an economic report on Queensland released by Commonwealth Securities showed that at the time of the state election on 31 October, Queensland's annual population growth rate had risen to the second-highest in Australia. Although the newly elected state government is made up of the same people as before, Queensland property experts have put forward new recommendations for property development over the next four years.

After Queensland's borders reopen, an interstate migration surge not seen since the early 2000s is expected. Property experts say that to ensure a booming property market, the newly elected state government must work to retain these new residents.

Antonia Mercorella, Chief Executive of the Real Estate Institute of Queensland, predicts that once border restrictions are lifted, Sydneysiders and Melburnians will flock to Queensland. She said, "Over the past few months, both housing transaction activity and property prices have risen significantly across south-east coastal towns, including the Gold Coast and the Sunshine Coast."

Paul Bidwell, Deputy CEO of Master Builders Queensland, also said the state government must prepare for the opportunities and challenges that this anticipated boom will bring. "First we need to ensure there is an adequate supply of land before homes can be built, and the town-planning system also has to keep pace with this growth," he said. "The fundamental elements of property development are population growth, employment and infrastructure."

First-home buyers and those building new homes have become the target of federal and state government financial stimulus programs. The government has committed substantial funds in grants to encourage them to buy property during the pandemic and to drive domestic demand while the borders are closed. This has led to increased land demand in south-east Queensland's growth areas, such as Moreton Bay, Ipswich, Logan and the Gold Coast. In many areas, land is now hard to come by.

Before the election, the Premier announced the establishment of a $200 million Building Acceleration Fund, with these loans to be provided to developers to build infrastructure such as roads, sewers and stormwater drains around newly developed land. In addition, the Property Council of Australia has called on the state government to develop a new south-east Queensland regional development plan during this term of office, to address the "extreme shortage" of land in the Gold Coast and parts of the Sunshine Coast markets.