The city will have to produce more than 4,000 lots annually to keep up with demand
One of South East Queensland's fastest-growing cities is facing a significant shortfall of 2,500 housing lots per year due to the high demand surpassing the available supply, according to new research from RPM Group.
The city of Logan needs to produce 4,330 lots annually to keep up with the increasing demand. However, only 1,800 lots were registered last year, indicating a significant gap in meeting the housing needs of the growing population, according to a report by The Australian.
Clinton Trezise, the managing director of RPM Group Qld, revealed these findings during the Logan Property Outlook event organised by UDIA, The Australian reported.
“With skyrocketing building costs making only high end apartments feasible, much of the affordable housing will be left for greenfield developments to deliver,” Trezise said. “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.”
Trezise suggested that planning schemes should be implemented to facilitate greater density land developments, offering a more diverse product mix that suits a wider range of buyers and budgets, ultimately managing affordability.
RPM's research also revealed that Logan's average new build cost increased by 22% to $337,672 in the 2023 financial year, The Australian reported. Nonetheless, Logan still maintained the lowest average build cost in the southeast corner. Despite higher interest rates, greenfield land prices in Queensland's southeast continued to rise, with the median settled land price reaching $340,000, representing a significant 12% increase over the year.
However, Logan experienced a more modest increase of only 3% in land prices, with an average of $295,000, making it one of the cities with the most affordable land prices, along with Lockyer Valley, Scenic Rim, Somerset, and Toowoomba.
Read next: RACQ Bank survey shows Queenslanders optimistic about homeownership
Trezise said that this data presents a significant advantage and opportunity for Logan, which is centrally located with ample land supply, to meet the housing needs of the growing population in the state's southeast corner. With 85% dominance of detached housing, Logan offers the lowest cost development options amidst the current housing crisis.
The appeal of Logan has resulted in a net migration increase of 7,715 people to the city in the past year, The Australian reported. More than half of these moved from Brisbane and the Gold Coast, both of which are facing affordability issues.
The fastest-growing regions within Logan include Boronia Heights-Park Ridge and Yarrabilba, with the latter experiencing a population surge of 193% to 8,074 people as it establishes itself as Logan's newest city within a city. Over the six years leading up to 2022, Boronia Heights-Park Ridge witnessed a population growth of 72% to 9,166 people, according to The Australian.
Currently, Logan has 25 active residential estates, comprising over 40,000 residential lots. Out of these, 29,300 lots remain for sale, translating to approximately 13.8 years' supply based on the current sales rate, as per RPM's research.
The Queensland government recently announced a plan to buy approximately 1,300 properties in an effort to bolster the state’s housing stock.
Have something to say about this story? Let us know in the comments below.
