How Queensland’s huge construction boom could be crippled by a lack of land
Queensland could be on the cusp of a $60 billion construction boom involving property and industry, but questions have been raised about whether the state has the land to deal with the expected jump in population.
Construction workers are seen working at the Roma Street Station on the Cross River Rail project in Brisbane, Saturday, February 12, 2022. (AAP Image/Darren England)
And while there appeared to be enough zoned land, Colliers has said in a report that it can take a decade to release it.
Business leader and Brisbane engineering firm Arcadis’ Matthew Mackey said the Queensland construction boom would be the most most sustained since 2013-15.
“The tangible difference comes down to what is making up this total spend. In 2014, about 50 per cent of total construction output was associated with heavy industry (mining, etc.),” he said in a social media post.
“Only 22 per cent of this output was associated with property.
“Jump forward a decade to the forecast for 2025, property is likely to account for almost 45 per cent of the total output, while heavy industry is a mere shadow of its former self (proportionally) – equating to 17 per cent.
Property development was far more labour intensive which would indicate the state would need a bigger workforce than 2014.
But he also warned that costs were only likely to rise.
“It’s the golden decade in Queensland, as the state races towards 2032. But it will not be without its challenges and we need to find better and smarter ways of delivering construction – otherwise, clients will be paying substantially more for building a lot less.”
Colliers has also raised concerns that there wasn’t enough viable land to cope with the expected property surge.
It said there were 28,718 hectares of stock left in south east Queensland and 54,707 in regional Queensland which would yield about 400,000 dwellings in the south east and 200,000 in the regions.
Much of the SEQ land was in Logan and Ipswich while Townsville had room for 40,000 dwellings, Mackay 15,000, and Cairns 20,000.
“That said a significant portion of this land is deemed unusable due to various factors such as infrastructure availability, land ownership fragmentation, landowner intent, practical staging and capability for development or are preserved for the protection and restoration of wetlands, among others,” Colliers said.
“Despite the ample zoned land, unlocking it can take up to a decade due to environmental planning and infrastructure approval processes.
“Although the Government maintains there is more than 15 years of planned dwelling supply, the reality is that (of 2021) there was only four years of approved supply.
“The population growth has been higher than expected, with interstate migration adding round 55,000 new residents during the peak, compared to only 20,000 in previous years.”
It said the shortage of development sites in high-demand areas was likely to push the population out. Ipswich’s would take the bulk.
Colliers also claimed that the 2032 Olympics was likely to create even more pressure and it was likely that homebuyers would be forced out of the city to more affordable locations.
