This article is from the Australian Property Journal archive
LOGAN, Queensland must deliver more than 4,000 lots each year to keep up with the growing gap between housing supply and demand.
According to research by RPM Group Queensland, the city needs an additional 4,330 lots per annum to meet demand, while last year there were just 1,800 lots registered.
“With skyrocketing building costs making only high end apartments feasible, much of the affordable housing will be left for greenfield developments to deliver,” said Clinton Trezise, managing director at RPM Group Queensland,
“We not only need to increase supply but also focus on the right type of supply to bridge the gap between demand and availability meeting the needs of single household dwellers and families alike.”
This as Logan has reported net migration increase of 7,715 people to the city over the last 12 months, with of Boronia Heights-Park Ridge and Yarrabilba the fastest growing regions in the city.
“We not only need to increase supply but also focus on the right type of supply to bridge the gap between demand and availability meeting the needs of single household dwellers and families alike,” added Trezise.
“Current demand is likely to exacerbate house process further which requires a more diverse product mix to meet the needs of a growing population over the next 10 years. We need planning schemes for greater density land developments to suit a wider range of buyers and budgets to manage affordability.”
Logan’s average new build cost was up 22% to $337,672 over the 2023 financial year, despite the city still holding the lowest average build cost in the southeast corner.
The median settled land price in Queensland’s southeast reached $340,000 in the year to June 2023, reflecting a 12% increase annually.
Land prices in Logan were up 3% to $295,000 over the year, while prices in the outer areas of Lockyer valley, Scenic Rim, Somerset and Toowoomba boasted cheaper average land price.
“This data represents a significant advantage and opportunity for Logan, a city that is centrally located with ample land supply, to meet the needs of a growing population in the state’s southeast corner,” said Trezise.
“Logan benefits from an 85 per cent dominance of detached housing, which provides the lowest cost development options amid the current housing crisis.”
Logan currently has 25 active residential estates totalling more than 40,000 residential lots, including 29,300 lots for sale. At the current sales rate of 177 lots, this represents 13.8 years’ supply.
