SUNSHINE COAST LAND CRISIS - May 2021 - Powered by: View News Sunshine Coast
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SUNSHINE COAST
LAND CRISIS
May 2021
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SUNSHINE COAST LAND CRISIS
Introduction: by Terry Ryder
The Sunshine Coast is one of Australia’s
most dynamic growth regions, at a time when “If you don’t add more land to the greenfield
Australians are migrating within the country in supply, then those people looking for this type
increasingly large numbers.
of accommodation will continue to have less
Queensland is gaining more than any other choice … and, with less choice, they will be
state or territory from internal migration, by a
considerable margin. forced to go elsewhere.”
Most of the new residents arriving in Queensland
Matthew Gross, The National Property
are settling in South-East Queensland: the
Sunshine Coast, Brisbane and the Gold Coast. Research Co
Population projections for the Sunshine Coast
are being regularly updated, with estimates that available for new residential development along
the region’s population will rise from 347,000 at the coastal strip of the Sunshine Coast Region.
the 2016 Census to 580,000 in 2041.
Most of the greenfield development will occur
It is a natural beneficiary of the dominant trend inland in and around hinterland towns, much of
driving the growth, the Exodus to Affordable it west of the M1 (Bruce Highway).
Lifestyle, the most powerful force in residential Further to that, there is virtually no land
real estate across Australia in the 21st Century. available for residential development in the
New housing supply has become a critical coastal strip north of the Maroochy River.
factor in the south-east corner, with the supply The scarcity of residential land has resulted in
of developable land the elephant in the room. a steady reduction in lot sizes and an escalation
The housing industry believes the Sunshine in the prices paid by consumers for home sites
Coast has inadequate land to accommodate the on the Sunshine Coast.
level of population growth forecast by the State The data shows that the Sunshine Coast now
Government and the Sunshine Coast Council. has the smallest lot sizes of all the local
government areas in South East Queensland
The Council maintains that its planning
- and the most expensive home sites (based
procedures provide for adequate land supply,
on the rate per square metre) in South East
primarily through infill development (65% of
Queensland, except for Brisbane City.
growth to be accommodated in small to medium
sized infill projects, rather than through large- In a move that tends to confirm industry claims
scale greenfield development). of inadequate land supply, the Sunshine Coast
Council has recently proposed rezoning parcels
Industry organisations including the Urban of land from rural to residential in a number of
Development Institute of Australia and the hinterland areas, plus Bli Bli.
Property Council of Australia strongly disagree.
The Bli Bli land that is proposed by the Council
Consultancies like Project Urban state that for future residential development is the only
council overlays severely reduce the yield of area in this new policy that’s located close to
available land. the coast.
What is apparent from analysing the information For future residents seeking new houses on land
from all sources is that there is very little land close to the beaches, this will be the only option.
SUNSHINE COAST LAND CRISIS 2
The Impact Of The Sunshine Coast
“The Sunshine Coast, despite all that it has to
Land Shortage Crisis
offer, risks pricing itself out of the market. If
There are multiple negative consequences for the
Sunshine Coast economy and for the commuity if
new residents choose not to come, because
the region is unable to provide sufficient land for affordable homes in acceptable locations
new residents. are not available, this will create adverse
Matthew Gross of The National Property outcomes for the Sunshine Coast economy. ”
Research Co has commented that if people are
not provided with viable dwelling options in the Terry Ryder, Ryder Research Resources
Sunshine Coast region, “they will be forced to go
elsewhere”.
Property analyst Direct Collective said in a May Available homes are becoming increasingly
2021 report that unless more homes are built expensive, with extraordinary price growth in
for the exploding population, “locals will be 2021 to date.
squeezed out and forced to move away”.
Along the coastal strip north of the Maroochy
This report reveals a dramatic under-supply of River, many suburbs have recorded median
all types of housing - now and in coming years. house price growth of 9% or more in the past
“Of the next 200,000 residents, only 70,000 are three months alone - and as high as 21% in
catered for with detached housing in greenfield Noosa Heads.
estates under the council’s current planning The Sunshine Coast, despite all that it has to
scheme,” the report says. “That leaves a stark offer, risks pricing itself out of the market.
deficit for 130,000 people, who will instead need
If new residents choose not to come, because
to live in in-fill development, which usually takes
affordable homes in acceptable locations are not
the form of duplexes, units and apartments - or
available, this will create adverse outcomes for
smaller subdivisions in hinterland areas.”
the Sunshine Coast economy.
The evidence suggests that many people seeking
A common problem for regional cities across
to build new homes on the Sunshine Coast can’t
Australia is the inability to source workers.
find land at any price.
Anecdotally, businesses in the Sunshine Coast
For those who can access land to build, the region are already in the position of not being able
home sites are becoming both smaller and to fill job vacancies - not because there are no
considerably more expensive. willing applicants, but because workers cannot
The Sunshine Coast has been among the nation’s find anywhere to live close to the job location.
leading growth regions for some time and the When vacancies are well below 1%, any rental
official population projections confirm its status properties that become available attract dozens of
as a boom city is growing. applicants - which puts further upward pressure
But that is contingent of new residents being on rents. Increasingly, prospective residents
able to find homes in good locations at affordable cannot find accommodation at acceptable prices
prices. - or at any price.
The new land supply planned by the Sunshine There is also the economic impact if home
Coast Council is primarily hinterland. Much of it building is curtailed through the lack of residential
is located west of the Bruce Highway. land. Census data indicates that construction is
the second largest industry sector in terms of
It’s a reasonable assumption that most who employment in the Sunshine Coast region.
move to the Sunshine Coast are seeking a coastal
lifestyle. But currently there are no options for The land supply crisis has the potential to create
anyone who wishes to buy land to build a home an economic crisis for the region’s second
close to the beaches. biggest industry.
SUNSHINE COAST LAND CRISIS 3
SUNSHINE COAST LAND CRISIS
Accommodating Projected Population Growth
ABS population data: 2020 trends
“There’s a case to say that more land should be
The Exodus to Affordable Lifestyle is regarded rezoned and that more infrastructure should
by Ryder Research Resources as the most
important trend to impact residential real
be delivered.”
estate in the 21st Century.
Demographer Bernard Salt
We now have large numbers migrating out of
Sydney and Melbourne to regional areas. The
latest population data from the ABS shows that
the trend has been under way for many years Queensland’s population is predicted to hit 5.44
but has accelerated recently. million by mid-2025, up from 5.17 million in
June 2020.
In 2020, Sydney lost 31,600 to internal migration
and Melbourne lost 26,100, while Brisbane Real Estate Institute of Queensland (REIQ) CEO
gained 13,000 and many regional areas grew. Antonia Mercorella said interstate migration
and rising property prices would continue to put
The ABS data indicates that a net 19,000 people
“unprecedented pressure” on housing stock.
left the capital cities to move to the regions in
2019 and a net 43,000 made the move in 2020. “With property sales in Queensland outpacing
new listings, buyers continue to be out in force
This was the largest net inflow to the regions
and ready to purchase property,” Mercorella
since the beginning of the series in 2001.
said. “However, sellers are still yet to match
The regional areas of Queensland, Victoria and that burgeoning demand.”
NSW all made significant gains.
Population Projections In The
Federal Budget: May 2021
Queensland’s population is expected to rise by
more than a quarter of a million people in the next
four years, according to forecasts in the Federal
Budget, as people migrate from other states.
Treasury officials have predicted Queensland is
set to gain around 20,000 people from interstate
each year for the next four years — amounting
to almost 85,000 new residents by mid-2025.
Next year alone, Federal Treasury estimates
see Queensland gaining 23,800 new interstate
residents, while Victoria is set to lose 1,200 and
New South Wales is tipped to shed as many as
15,500.
SUNSHINE COAST LAND CRISIS 4
He highlighted that earlier projections found the
Demographer Bernard Salt: Coast was expecting 410,000 residents by 2031
February 2020 but this figure was now expected to be 437,000.
The renowned author “How and where is the Sunshine Coast going to
and demographer accommodate a net extra 27,000 residents by
Bernard Salt says 2031?” Salt said.
the Sunshine Coast “A logical follow-up argument is this: if
is being asked to municipalities are unable to accommodate the
accommodate a rate of volume of projected growth, then this growth
population growth not surely will spill over into other places, thus
previously envisaged. putting further stress on a city’s infrastructure
Salt was guest speaker at the Future Sunshine and in areas not designed to accommodate
Coast events hosted by the Sunshine Coast Daily such growth.
in early 2020. He said local developers had a “And that’s the point of strategic planning: it’s
strong case to argue for greater densities and for designed to ensure that population growth
greater access to developable residential land. aligns with the delivery of big-picture pieces of
infrastructure.”
His insights came from his comparison between
the area’s population projection for 2031 in the “The counterargument is that, while the 2031
2016 census - and the projections made in outlook sits above the previous outlook for that
previous years. year, there is sufficient scope within the existing
planning scheme, and existing infrastructure
“Where it can be demonstrated that the
assets, to accommodate this higher projection.”
projections underpinning the existing planning
scheme and land-release programs have been In the 15 months since that event, there has been
lifted, there’s a case to say that more land growing debate about whether the Sunshine
should be rezoned and that more infrastructure Coast region has sufficient residential land
should be delivered,” Salt said. available to accommodate the projected growth.
SUNSHINE COAST LAND CRISIS 5
SUNSHINE COAST LAND CRISIS
Evidence of Land Shortage
Matusik Property Insights analysis:
July 2020 and September 2020 “The lack of land supply is evidenced by the
rapid increase in the price per square metre
Independent real of land sold over the last decade. Land is
estate research becoming less affordable. This is part of the
analyst Michael reason behind the fall in allotment sizes.”
Matusik said in a
July 2020 report that Independent research analyst Michael Matusik
around 70% of the
new urban allotment
registrations across It also had the highest average price per
SEQ were held in square metre ($700) for residential land, except
just 30 suburbs, out for Brisbane City. The average rate paid for
of a total of 320 suburb areas across South-East Sunshine Coast allotments of $700 per square
Queensland (SEQ). metre compared to $500 in Ipswich City, $540 in
Logan City, $678 in the Moreton Bay Region and
These suburbs also dominated land development $676 on the Gold Coast.
within their respective municipal areas.
The report noted that new land subdivision The report found that the Sunshine Coast had
activity across SEQ was now limited to a few experienced the biggest reduction in median lot
development corridors. sizes over the past decade (down 38%, compared
with a 20% reduction in Brisbane City).
Only three of those 30 SEQ suburbs were on the
Sunshine Coast: Caloundra West, Landsborough The average price per square metre had grown
and Nambour. None were in the coastal strip 80% in the past decade on the Sunshine Coast,
north of the Maroochy River. compared with 71% in Brisbane City, 52% in
Logan City, 55% in Redland City and 65% in
Those three Sunshine Coast locations had Ipswich City. Only the Gold Coast (88%) had
jointly delivered 576 vacant land sales and 135 grown more.
house-and-land package sales in the previous
12 months. The report said that the lack of subdividable
land supply was “acute”.
Further analysis by Matusik in September 2020
looked in more detail at the SEQ residential
land market.
This showed how the scarcity of available
residential land in the Sunshine Coast Region
had increased prices and reduced lot sizes.
The report examined residential land sales in
nine municipalities (LGAs) covering Brisbane,
the Gold Coast and the Sunshine Coast.
It showed that the Sunshine Coast had the
smallest median lot size (400 square metres) of
the nine SEQ local government areas.
SUNSHINE COAST LAND CRISIS 6
“Of the next 200,000 residents, only 70,000 are catered for with detached
housing in greenfield estates under the council’s current planning scheme. That
leaves a stark deficit for 130,000 people, who will instead need to live in in-fill
development, which usually takes the form of duplexes, units or apartments.”
Sunshine Coast The Future 2021 report by Direct Collective, May 2021
It said: “In all instances the local authorities – in Harmony development manager Anthony
cahoots with the Queensland State Government Demiris said sales had been “phenomenal”
- argue that there are adequate broad hectare which forced land releases to be fast-tracked.
subdivision supplies, but ground truthing “We had many eager buyers camped out the night
finds the opposite. The lack of land supply is before, or at 1am and 2am the morning of, waiting
evidenced by the rapid increase in the price per in line for land to be released,” Demiris said.
square metre of land sold across South-East
Queensland over the last decade. “Our builder partners are experiencing just as
much positive activity with a full display village
“Land is becoming less affordable. This is part carpark often until well after 6pm.”
of the reason behind the fall in allotment sizes.”
Demiris said that no sooner was there a land
Matusik also commented: “It amazes me that release, AVID were looking to plan the next one.
local authorities - and especially their planning
departments - weigh in on land supply, often
making the development approval process
difficult, if not impossible, on the basis that they
think there is sufficient housing supply.”
Buyers Camping Out To Secure
Home Sites: September 2020
The Sunshine Coast Daily reported on 20
September 2020 that “Hopeful buyers have
taken to camping outside sales offices the night
before land is released, given the shortage of
land sparked by the HomeBuilder frenzy.”
The report said: “While the grant - a $25,000 UDIA report: November 2020
scheme for home-buyers - has kick-started the
economy as it was intended to do, there is next The Urban Development Institute of Australia
to no available land left. (UDIA) said in a November 2020 that there was a
“Land that has been released in Sunshine “critical” land supply shortage on the Sunshine
Coast hotspots - such as Palmview’s Harmony Coast.
community and estates in Palmwoods and Forest The UDIA said the region was hanging on a
Glen - has all been snapped up in record time.” “knife edge”, with UDIA CEO Kirsty Chessher-
Real estate agents have reported entire land Brown warning there would be a “substantial”
releases to have sold in just days. At AVID rise in house prices. (This has subsequently
Property Group’s Harmony community in been shown to be accurate, with significant
Palmview, buyers would camp overnight to get rises in Sunshine Coast prices in the six months
the jump on others. since then - refer to figures on Page 9)
SUNSHINE COAST LAND CRISIS 7
A Sunshine Coast Daily article on 10 November 2020 reported:
Urban Development Institute of Australia Queensland CEO Kirsty Chessher-Brown said if the
land shortage was not acted upon, it would lead to a “substantial” rise in house prices.
In turn, she said it would lead to the region’s rental market tightening further, a reduction in
housing options and infrastructure shortfalls.
Chessher-Brown said servicing land fast enough to keep pace with population growth was a
major challenge that the industry, the State Government and Sunshine Coast Council needed
to resolve.
The council and the State Government said they were “committed to working together and
alongside developers to co-ordinate and facilitate approvals and development to bring land to
market in a timely manner”.
But Ms Chessher-Brow said the Sunshine Coast’s approved lot supply was at 2.4 years, which
fell well short of the benchmark of four years approved lot supply.
“Once it slips below, that’s when it leads to an increase in home prices and tightening of rental
vacancies,” Ms Chessher-Brown said.
“We are facing a real housing affordability crunch.
“If it’s not addressed house prices will rise and rent will rise.”
“On the Sunshine Coast, other than the Twin Waters West development, there is no land supply north
of the Maroochy River, which is terrible for families, first home buyers, all demographics.”
Consolidated Properties Group CEO Don O’Rorke
Consolidated Properties Group CEO Don development was also planned for the Beerwah
O’Rorke, whose Brisbane-based company is East Major Development Area.
behind a Surf Ranch and residential development “Council has recently increased local land supply
tabled for Coolum, says the land shortage was through the introduction of new residential
“really concerning”. zoning allocations at Beerwah, Bli Bli, Glass
“It’s not opinion, it’s actual fact, and by simple House Mountains, Palmwoods and Yandina,
economics, as supply dwindles, prices go up comprising a total land area of approximately
and that impacts everyone,” O’Rorke said. 200ha,” she said.
“On the Sunshine Coast, other than the Twin “Council also currently has the Planning Scheme
Waters West development, there is no land Amendment on public consultation which
supply north of the Maroochy River, which is proposes to zone an additional approximately
terrible for families, first-home buyers, all 115ha of land for urban purposes at Bli Bli,
demographics.” Landsborough and Yandina.”
That article quoted a Sunshine Coast Council
The Council statement highlights the reality
spokeswoman as saying that Palmview and
Caloundra South provided considerable capacity that most of the planned future development
to meet the region’s growth needs in the short areas are hinterland locations, primarily
and medium term and she said longer term around the towns west of the M1.
SUNSHINE COAST LAND CRISIS 8
Early Release of Blocks:
January 2021
In January developer Stockland released the
first of 4,000 new blocks of land to be offered for
sale at the Aura development - two years ahead
of schedule.
At the launch, Stockland unveils its third suburb
inside the $5 billion masterplanned community
at Caloundra South.
Prior to the outbreak of Covid-19, vacancies
The suburb, named Banya after the Bunya Tree,
across the Sunshine Coast were tight, with
will compromise 4,000 homes and townhomes
most postcodes below 2.0%.
upon completion.
But with tourism being impacted because of
It will include community amenities including a
border closures – both interstate and international
state primary school and private prep-Year 12
– the market became flooded with new listings.
school, two neighbourhood village centres and
Many investors could no longer visit their holiday
up to three childcare centres.
homes or rent them out, while Airbnb owners
It will be the third suburb in the Caloundra entered the long-term rental pool.
South community, which will cater for 50,000
As a result, vacancies rose briefly in April 2020,
residents at full capacity.
but not inordinately so. And since then they have
Aura project director Josh Sondergeld said 56 declined significantly.
lots were being released in January and the
They are now very tight with most postcodes
remaining would be staged over the next 10
being well below 1.0%. (See table next page.)
years.
He said release had been brought forward by
two years to cope with the demand for new Properties For Sale Hit Decade Low:
homes and land. January 2021
“We saw a rise in the number of inquiries
following the HomeBuilder announcement, Property and rental prices in the Sunshine
with several land and townhome releases fast- Coast have been pushed up rapidly as market
tracked to cater to demand,” he said. volatility threatens to deplete stocks.
“We’ve had a large amount of inquiries and According to SQM Research, the number of
elevated interest levels.” properties available for sale on the Sunshine
Coast hit a decade low of 7,252 in December,
Sunshine Coast Vacancy Rates: compared with 12,230 in 2010.
May 2021 The situation on the rental market is even more
Vacancy rates across the Sunshine Coast extreme, with vacancy rates falling to a 15-year
Region have remained extremely tight, despite low of 0.4% in December, down from an April
the negative impacts that were forecast at the high of 2.4%.
onset of the Covid-19 pandemic. Research from the Residential Tenancies
Along the coastal strip of the Sunshine Coast Authority (RTA) revealed a 6.5% increase in the
Region, vacancy rates range from 0.2% to median weekly rent price for a three-bedroom
0.8%. Rapid population growth coupled with house on the Sunshine Coast to $490 per week
inadequate construction levels of new dwellings over the year ending December 2020.
has led to a steady reduction in residential Over the same period, the rental price of a two-
vacancy rates. bedroom unit added nearly 8%, rising to $410.
SUNSHINE COAST LAND CRISIS 9
Minyama is up 23% to $1,400,000, Birtinya 23%
Sunshine Coast Price Rises: to $745,000 and Eumundi 21% to $800,000.
May 2021
Buderim, Coolum Beach, Maleny, Moffat
Consecutive quarters of rising sales activity are Beach, Mount Coolum, Noosaville, Pomona and
translating into major price growth across the Sunshine Beach have all increased by between
regional areas of Queensland, according to the 15% and 18% in the past year.
Winter 2021 edition of The Price Predictor Index
currently being produced by Ryder Research It is notable that many of the locations with the
Resources. highest growth are located along the Sunshine
Coast coastal strip north of the Maroochy River.
The Sunshine Coast is the standout market for
price growth. Throughout the Sunshine Coast The Sunshine Coast is a major beneficiary of
Region and Noosa Shire local government the Exodus to Affordable Lifestyle trend, with
areas, there are 27 suburbs where the median large numbers of Australians migrating from
house price has increased by more than 10% in the biggest cities to regional areas, at a time of
the past 12 months. limited supply of dwellings in the region.
Marcoola has risen 39% to $770,000, Sunrise Perhaps most stark is the degree of growth in
Beach has increased 27% to $1,090,000, median prices in the most recent quarter.
Rise in median prices, selected suburbs Sunshine Coast, latest quarter
Suburb Market January 2021 April 2021 Rise in 3 months
Marcoola Houses 705,000 770,000 9.2 %
Coolum Beach Houses 710,000 780,000 9.8 %
Coolum Beach Units 425,000 455,000 7.1 %
Twin Waters Houses 850,000 930,000 9.4 %
Sunrise Beach Houses 990,000 1,090,000 11.1 %
Sunrise Beach Units 575,000 625,000 8.7 %
Sunshine Beach Houses 1,975,000 2,050,000 3.8 %
Sunshine Beach Units 880,000 990,000 12.5 %
Noosa Heads Houses 1,150,000 1,400,000 21.7 %
Noosa Heads Units 905,000 960,000 6.1 %
SUNSHINE COAST VACANCY RATES
Postcode Suburbs Vacancy rate
4556 Buderim, Sippy Downs 0.5 %
4575 Birtinya, Kawana, Buddina, Wurtulla, Minyama 0.7 %
4551 Caloundra, Moffat Beach, Golden Beach, Pelican Waters 0.4 %
4573 Coolum, Peregian 0.7 %
4564 Marcoola 0.4 %
4558 Maroochydore, Kuluin 1.0 %
4557 Mooloolaba 0.3 %
4567 Noosa Heads, Sunshine Beach 0.9 %
Source: sqmresearch.com.au
SUNSHINE COAST LAND CRISIS 10Most greenfield development would occur in
UDIA forum: March 2021 hinterland locations west of the M1 highway.
A forum hosted by the Urban Development Project Urban’s Andrew Stevens provided an
Institute of Australia at Maroochydore update on how land supply is being impacted by
brought together three experts to discuss the overlays. Stevens said the Council’s estimates
opportunities and challenges of land supply on on the yield of specific parcels of land, in
the Sunshine Coast. terms of the number of residential blocks that
were possible, were seriously compromised
The UDIA said: “With an estimated requirement
by overlays – including environmental, flood,
for 87,000 more dwellings by 2041, development
wildlife and other overlays.
activity must increase significantly.”
Sunshine Coast Council’s James Ruprai Stevens said overlays could typically reduce the
presented the Council’s outlook for land supply number of residential allotments on a parcel of
and how it is dealing with it in the new planning land from 100 to below 50. He said the Council’s
scheme both from a greenfield point of view as estimates for the provision of new dwelling
well as a consolidation target perspective. allotments from in-fill sites were overstated.
Ruprai argued that land supply was adequate Matt Gross from National Property Research
to meet the projected population growth for Co. explored the impacts of population growth
the Sunshine Coast, with an emphasis on in-fill on the supply equation and how this compared
development (65% of future population growth). to council’s assessment.
State Government Recognises Land Supply Is Inadequate: March 2021
A UDIA bulletin published on 3 March 2021 was titled “Good first step to solving SEQ land
supply crisis”.The Bulletin said:
“Queensland’s Deputy Premier Steven Miles has used the Institute’s Growth Forum this
morning to commit to a ‘fundamental rethink” of land planning between Tweed Heads and
Noosa.
“Responding to a sustained UDIA Queensland advocacy campaign, Deputy Premier Miles
announced a specialist team will be created to tackle our booming population. Its role is to
ensure new developments can manage the surge in residents.
Miles said he had asked the State Planner to work with Economic Development Queensland
to establish the Growth Areas Delivery Team.
CEO Kirsty Chessher-Brown said the announcement was “a terrific first step”.
“The land supply crisis and its knock-on consequences for housing affordability and rental
availability were easy to see coming,” she said. “Booming interstate migration has only
made this worse.
“What we needed was an effective circuit breaker and we are hopeful today’s announcement
will help with that.”
Following on from the release of the Institute’s influential Perfect Storm report late last
year, outlining the root causes of the current land supply crisis, the SEQ Growth Forum was
directly focussed on finding solutions that can be fast-tracked by government to solve the
current impasse.
SUNSHINE COAST LAND CRISIS 11Sunshine Coast Council Statement:
May 2021
The Sunshine Coast Council said in a statement
in May 2021 that it is planning ahead to cater
for an additional 200,000 approximately who are
expected to live in the region by 2041.
It said the Council’s forward planning for
these new residents seeks to ensure that
the community’s lifestyle is maintained,
biodiversity areas are protected, and transport
and infrastructure can sustain the pattern of
settlement into the future.
“There are significant environmental and
landscape values that determine developable
land available on the Sunshine Coast,” a Council He said Palmview and Caloundra South
spokesman said. (Aura) provided considerable capacity to meet
the region’s growth needs in the short and
“The Sunshine Coast community is very clear medium term. Longer-term development
that protecting natural assets is important. was also planned for the Beerwah East Major
This includes spaces like the inter-urban break Development Area.
between Sunshine Coast and Moreton Bay
Regional council areas, Blue Heart Sunshine Future growth was intentionally focussed on
Coast, Pumicestone Passage and lower- the coastal corridor and the southern end of
Mooloolah Floodplain. the region (i.e. Caloundra South, Palmview,
Beerwah East), the spokesman said.
“Protecting our ‘community of communities’
and the identity of townships has also been “Additionally, council has recently increased
identified as important, and a key tool to local land supply by introducing new residential
maintaining this is the separation between zoning allocations at Beerwah, Bli Bli, Glass
towns and villages.” House Mountains, Palmwoods and Yandina,
comprising a total land area of approximately
Council, along with the Queensland Government 200 hectares.
and key industry stakeholders (including the
UDIA), actively participates in the Growth “Council is considering community feedback to
Monitoring Program (GMP) which monitors land a Planning Scheme Amendment – Additional
supply against benchmarks set by the South SEQRP Sites and Other Zoning Matters – which
East Queensland Regional Plan 2017. proposes to zone approximately 115 hectares
of additional land for urban purposes at Bli Bli,
“The number of currently approved and sealed Landsborough and Yandina. Feedback closed at
lots available to sell is only one part of the land the end of last year.”
supply equation,” the Council spokesman said.
“There are often market conditions or other The statement confirms that the Council’s
factors that can restrict or limit the release of planning envisages future population being
urban land to the market. Council works with accommodated in hinterland locations, mostly
the industry to approve development through west of the M1 (Bruce Highway), and that the
the development assessment process but has only land being considered along the coastal
no control over when those applications are strip north of the Maroochy River is the parcel
lodged for assessment.” at Bli Bli.
SUNSHINE COAST LAND CRISIS 12olds – to look outside of the Sunshine Coast for
Matthew Gross, The National opportunities.
Property Research Co:
May 2021 Report “If there is a genuine lack of land supply suited
to detached housing, that by default continues
Experienced research analyst Matthew Gross to push prices up, migration data will lead to
said in a May 2021 report that the migration story the wrong story being told - that is, where the
continues to be good news for Queensland with simple conclusion being reached is that people
a rapid acceleration in the numbers throughout are moving elsewhere for lifestyle reasons.
the December 2020 Quarter. “But is that what is really happening? If you
Gross said the September 2020 Quarter saw don’t add more land to the greenfield supply,
Greater Brisbane lose market share in terms then those people looking for this type of
of migration patterns (though it bounced back accommodation will continue to have less
in the final Quarter of 2020), while the rest choice, not more…and with less choice, they
of Queensland including the Sunshine Coast will be forced to go elsewhere.”
continued to gain momentum, more than
doubling in size when comparing the quarter-
on-quarter data. “Rental affordability is being stretched and
Gross said that in regions such as the Sunshine residential prices are escalating rapidly to the
Coast, rental affordability is being stretched point where some agents and developers have
and residential prices are escalating rapidly to a list price of ‘make an offer’.”
the point where some agents and developers
have a list price of “make an offer”. Matthew Gross,
He suggested that the shortage of rental The National Property Research Co
accommodation, and increasingly high rents,
were forcing some – particularly 15 to 24-year-
SUNSHINE COAST LAND CRISIS 13Report from Outgoing Stockland
CEO: May 2021
Mark Steinert,
outgoing CEO
of national
d e v e l o p e r
Stockland, says
the Sunshine
Coast region has
some significant
“But it should give pause to decision-makers
questions it must
in local government areas like the Sunshine
answer about
Coast, who are currently pursuing an infill
housing density
densification target of 65%, higher than
and options as growth rapidly accelerates.
Melbourne and Perth.”
Steinert, addressing an audience at Maroochy
Steinert said tilting the density equation too far
RSL as part of a Sunshine Coast Business
in one direction would reduce choice available
Council event, said he expected the work-from-
for home-buyers.
home trend to amplify pressure on housing
affordability and availability in attractive regions “The questions for the Sunshine Coast are
like the Sunshine Coast. ‘what level of density allows us to keep our
way of life, and grow sustainably?’ and more
Steinert said the Sunshine Coast needed to
importantly, ‘do we think we currently have the
ask itself whether it had the current balance
right balance?’,” he said.
of housing choices right. If two-thirds of new
housing supply was a variation on unit living, Mr Steinert said Stockland’s Aura estate in
there was a real chance standalone houses Caloundra South had been the highest-selling
could make up a small minority of new homes masterplanned community in the country for
available in decades to come. the last five years.
“The Sunshine Coast needs to ask itself whether it has the current balance of housing choices right. If
two-thirds of new housing supply is a variation on unit living, there is a real chance standalone houses
could make up a small minority of new homes available in decades to come.”
Mark Steinert, CEO Stockland
He forecast a society where only those with He said in the last three years Stockland had
intergenerational equity could be home- invested more than $625 million in the region,
owners, if the pursuit and delivery of urbanised where it had its largest presence outside of any
growth radically changed existing communities capital city.
and ways of life. “In the last 10 years, the Sunshine Coast has
“High levels of density in areas like South stepped onto the national stage - integrating
Bank, Surfers Paradise and Maroochydore in with South-East Queensland and shifting from
combination with middle-ring townhomes and a region close to Brisbane, into the northern tip
low-rise apartment product around village of a broad metropolitan region spanning almost
centres will be an essential part of ensuring we 200km,” he said. “And the Olympics will take
can cater for growth,” Steiner said. this to another level.”
SUNSHINE COAST LAND CRISIS 14That’s why the State
Comments From The Industry: Government is looking
May 2021 for strategic sites and
seeking to change the
Danny Buxton, Managing Director, Triple Zero Property zoning from rural to
Group residential. But the
“Land supply is processes can take a
a real problem long time.
for the Sunshine “There are only so
Coast. With the many people who are
surge in people going to live in Aura, with all those little houses
moving here, it’s on postage stamp sized blocks of land and very
creating a real narrow roads with no ability to park your car on
issue. the street. It’s a pretty ordinary way to live but it
“Developers like sells at a certain price.
Stockland have
increased their “In terms of the coastal areas, new development
output, they are trying to release land as quickly has to come from in-fill because there are now
as possible, but machines can only work so fast. new big blocks of land being approved.
“We have clients who want to build new homes “Whenever we have sites for sale that are
and they want to be east of the Bruce Highway, approved and ready to go for development,
but they can’t find anything that meets their there’s huge demand from developers – but
criteria and budget. they are as rare as hen’s teeth.”
“We also have an issue with building costs here.
Roofing has doubled in price and framing has Scott Northcott, Real Property Advice
just gone up 30% in price. But people can’t get “In terms of new
land to build in the first place. housing, it’s mostly in-
“Along the coast from Caloundra to Noosa, fill. The only greenfield
there’s just no land available. There are a developments are in
couple of in-fill projects around Nambour and the south, down around
Woombye, but they have sold out. There are Aura, and on the other
little pockets of land popping up from time to side of the Bruce
time, but they’re sold within a week. Highway.
“In the big projects like Harmony and Village “The northern section
Green, there’s nothing that’s registering for 12 of the coast is all in-
months. If you could buy something, it’s a wait fill, which will be very
of 12 months for registration. difficult to bring to the market at affordable
prices. People are asking exorbitant prices for
“Prices are rising very fast. I know people who
in-fill land.
have doubled their money on land they bought
two years ago.” “To accommodate future growth, the Sunshine
Coast has to head west and it has to go up, with
Jason Degn, Managing Director, Degn Real Estate medium and high-rise development.
“Every year on the Sunshine Coast, there are “The Council is banking on in-fill development
less and less sites available for residential sub- to provide sufficient homes to cope with the
division. growth, but that won’t work because of the
“There’s a critical shortage of good development overlays, which reduce the number of dwellings
sites on the Sunshine Coast. that can be built on a block of land.”
SUNSHINE COAST LAND CRISIS 15SUNSHINE COAST LAND CRISIS
The Bli Bli Land
The owner of a parcel of land at 45 Lefoes Road, The company was listed as owners of 45 Lefoes
Bli Bli, has a particularly strong asset. Rd, Bli Bli, part of what council has identified
It represents the only land north of the as a parcel made up of nine lots, totalling about
Maroochy River along the Sunshine Coast strip 80ha, proposed to be rezoned from rural to
which is available for large-scale residential emerging community zone.
development. The rezoning was in response to the site’s
In November 2020 the Sunshine Coast Council inclusion in the South East Queensland Regional
announced proposed changes to rezone 100ha Plan urban footprint.
of rural land to medium low density residential. Mr Shadforth had developed nearby Parklakes
The proposed changes were focused on land at and Parklakes II, along with Robert Flipp, who
Bli Bli, Chevallum, Forest Glen, Landsborough owned about 15ha of the land set for rezoning.
and Yandina. Kevin Covey, director of Covey Associates,
The targeted locations are all hinterland towns the project manager and consultant for Mr
with the exception of the Bli Bli parcel. Shadforth and Mr Flipp on Parklakes, said
council’s proposed amendment only related to
The council said that it wants to rezone 80ha of about 55ha of land.
caneland property on Yandina-Bli Bli Rd, Thomas
Rd and Lefoes Rd to emerging community zone. Mr Covey said Mr Shadforth and Mr Williams
owned about 38ha of that 55ha parcel, as well
The council said it was a “substantial area” of as another property to the north about 12.3ha
potentially developable land that could help in size which was not part of the “council-led
cater for the future housing needs in Bli Bli. rezoning process”.
It said while half of the land was suitable for Mr Covey said any development undertaken on
urban development, flooding was a constraint the site would be in accordance with council’s
in the northern parts of the area. proposed masterplan.
The rezoning would include areas for low to “A variety of lot sizes would be proposed to give
medium residential development and a small first and second homeowners opportunity to
neighbourhood shopping centre. build their dream home,” he said.
It would also feature a flood storage and “The current lack of housing options on the
stormwater detention system. Coast is evident and any development at the site
The Sunshine Coast Daily reported on 3 would help alleviate this stress.
December 2020 that the owners of the Bli Bli “The proposed housing options would also
land intended to alleviate “housing stress support the new Maroochydore CBD.”
currently gripping the region”.
This land is unique as there is no other land
The article reported: close to the coast along the Sunshine Coast
Co-founder of Shadforth civil contracting firm coastal strip which is available for large-scale
Peter Shadforth and Sam Williams are the residential development.
directors of One Man Bli Bli Pty Ltd. All other sites are inland, hinterland sites.
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SUNSHINE COAST LAND CRISIS 17You can also read
