Developers have rushed to secure $350 million on offer from the Queensland government to fast-track the construction of new apartments and townhouses, sparking fresh calls to incentivise housing supply through tax reform.

The fund to cover infrastructure charges and development costs to boost new builds in underdeveloped urban areas was flooded with more than 220 applications in a matter of days, forcing the government to close the process just two weeks after being launched, The Australian Financial Review can reveal.