RPM Group says Logan will have to produce 4330 housing lots annually to keep up with demand

One of South East Queensland’s fastest growing cities has an annual housing lot shortfall in the thousands, stoking fears of a deepening housing crisis in the region.

One of South East Queensland’s fastest growing cities has a 2500 annual housing lot shortfall as demand outstrips supply, according to research conducted by RPM Group.

RPM Group Qld managing director Clinton Trezise said the gap in Logan was growing wider with the city having to produce 4330 lots annually to keep up with rising demand.

However, there were only 1800 lots registered last year indicating a significant shortfall in meeting the needs of the growing population.

Mr Trezise, who unveiled his findings at UDIA’s Logan Property Outlook event on Thursday, said the city’s housing supply was constrained.

“With skyrocketing building costs making only high end apartments feasible, much of the affordable housing will be left for greenfield developments to deliver,” he 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.

“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.”

RPM Group Queensland managing director Clinton Trezise

According to research by RPM, Logan’s average new build cost grew 22 per cent to $337,672 in the 2023 financial year, but it remained the city with the lowest average build cost in the southeast corner.

The latest RPM research has revealed that greenfield land prices in Queensland’s southeast continued to climb in the year to June 2023, despite higher interest rates.

The median settled land price surged to $340,000, marking a significant 12 per cent increase over the course of the year.

However, land prices in Logan were up just 3 per cent to $295,000 over the year – with prices in the outer areas of Lockyer Valley, Scenic Rim, Somerset and Toowoomba the only cities with a 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,” Mr Trezise said.

“Logan benefits from an 85 per cent dominance of detached housing, which provides the lowest cost development options amid the current housing crisis.”

Logan’s appeal has driven a net migration increase of 7715 people to the city over the past year. More than half, have come from Brisbane and the Gold Coast, both of which are experiencing affordability issues.

Logan suburbs of Boronia Heights-Park Ridge and Yarrabilba have been the fastest growing regions in the city, while Flagstone is catching up fast.

Figures for the six years to 2022 show that the former experienced 72 per cent population growth to 9166 people, while Yarrabilba’s population surged 193 per cent to 8074 as the suburb established itself as Logan’s newest city within a city.

RPM research reveals that Logan currently has 25 active residential estates totalling more than 40,000 residential lots, with 29,300 lots remaining for sale which at the current sales rate 13.8 years’ supply.