Changes in the Queensland Property Market — Land Shortage May Emerge

According to a report in the Courier Mail, a Queensland economic report 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 retains the same team, Queensland property experts have put forward new recommendations for the development of real estate over the next four years.

After Queensland's borders reopen, an interstate migration surge unseen since the early 2000s is expected. Property experts say that to ensure a booming housing market, the newly elected state government must work to retain these new residents.

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

Paul Bidwell, Deputy Chief Executive Officer of Master Builders Queensland, also said that the state government needs to prepare for the opportunities and challenges that this anticipated boom will bring. "First, we need to ensure there is an adequate supply of land so that homes can be built, and the town planning system also has to keep up 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 fiscal stimulus programs. The government has committed substantial grants to encourage them to buy property during the pandemic and to drive domestic demand while borders remain closed. This has led to greater demand for land in south-east Queensland's growth corridors, such as Moreton Bay, Ipswich, Logan and the Gold Coast. In many areas, land is now hard to come by.

Before the state election, the Premier announced the establishment of a $200 million Building Acceleration Fund. This loan will 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 draw up a new development plan for the south-east Queensland region during this term of office, to address the "extreme shortage" of land in the Gold Coast market and parts of the Sunshine Coast market.