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While Queensland pushes ahead with new constructions, experts warn that the dwellings on offer miss the mark for market needs, even as supply rises.
With construction activity booming across Queensland, the Real Estate Buyers Agents Association of Australia (REBAA) has raised concerns that supply growth is not aligned with buyers’ demand.
According to the latest Cotality Cordell Construction Monthly report, Queensland has an estimated $1.5 billion worth of construction projects in the pipeline.
Of the pipeline, almost $700 million has been allocated to residential projects, with approximately $321 million having entered the construction stage.
Managing director of Streamline Property Buyers and president of the REBAA, Melinda Jennison, said while supply is climbing, these projects are not fulfilling the needs of buyers.
“We’re seeing supply numbers rise again, which is positive, but the critical issue is where that supply is being delivered and what type of product is being built,” Jennison said.
“From what we’re seeing on the ground in Brisbane, there’s a clear misalignment between planned supply and consumer demand.”
The planned supply comes under Queensland’s ShapingSEQ 2023 plan, which aims to attract 2.2 million more residents by 2046, with 60 per cent of new homes concentrated in well-connected urban hubs.
According to the state plan, most residential growth is expected to occur through attached dwellings in Brisbane and Moreton Bay, while Logan, Ipswich and Redlands are projected to see a higher proportion of growth through detached housing.
However, REBAA said that the construction activity differs, with new housing developments rising in poorly serviced areas, while central apartment projects skew towards the luxury market, pricing out average buyers.
Jennison said that while the current construction supply may be viable to reach the necessary volume, the upcoming dwellings are not suitable for the needs of most buyers, who are looking for future-proofed homes in locations where they can thrive.
“We’re attending open homes every week and seeing queues out the door for many townhouses and boutique-style apartments that offer space, lifestyle and access to transport,” Jennison said.
“But the development pipeline is still skewed towards high-rise apartments designed for affluent buyers, or sprawling land subdivisions in areas where infrastructure simply hasn’t kept pace.”
“It’s not solving the affordability or supply issue – it’s reinforcing it.”
As south-east Queensland continues to experience growth, Jennison said that construction capacity is no longer the issue, but delivering them in the right way is.
“Planning and delivery must be better aligned. Right now, the construction data and the open home queues are telling two very different stories,” Jennison concluded.
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