Addressing Logan's Housing Crisis: A Call For Action to Meet Demand
Research conducted by RPM Group Queensland has brought attention to a concerning gap between housing supply and demand in Logan. The city, located in Queensland's southeast, reportedly needs to produce 4,330 lots annually to keep pace with rising demand. However, data reveals that only 1,800 lots were registered last year, indicating a substantial shortfall in meeting the needs of the growing population.
The findings, unveiled by Clinton Trezise, Managing Director of RPM Group Queensland, at the UDIA's Logan Property Outlook event, underscore the constraints in Logan's housing supply. Trezise emphasized that housing supply is constrained, and future demand is projected to significantly outstrip supply, potentially exacerbating affordability challenges.
"With skyrocketing building costs making only high-end apartments feasible, much of the affordable housing will be left for greenfield developments to deliver," said Trezise. He stressed the importance of not only increasing supply but also focusing on the right type of supply to bridge the gap between demand and availability for both single household dwellers and families.
RPM's research indicates that Logan's average new build cost grew by 22% to $337,672 in the 2023 financial year. Despite this increase, Logan has the lowest average build cost in the southeast corner of Queensland. The research also reveals that greenfield land prices in Queensland's southeast continued to climb, with the median settled land price reaching $340,000, marking a 12% increase over the year.
However, the data suggests a favorable position for Logan, with land prices in the city only experiencing a 3% increase to $295,000 over the same period. Trezise sees this as a significant advantage and opportunity for Logan to meet the needs of its growing population, especially in the context of the current housing crisis.
"Logan benefits from an 85% dominance of detached housing, which provides the lowest cost development options amid the current housing crisis," said Trezise. The appeal of Logan has resulted in a net migration increase of 7,715 people to the city over the past year, with many coming from Brisbane and the Gold Coast, both grappling with affordability issues.
Key growth areas in Logan include suburbs like Boronia Heights-Park Ridge and Yarrabilba, experiencing substantial population growth. RPM's research indicates that Logan currently has 25 active residential estates totaling more than 40,000 residential lots, with 29,300 lots remaining for sale. At the current sales rate of 177 lots, this represents 13.8 years' supply.
"At this rate, Logan is primed to maintain its position as one of the most affordable markets in southeast Queensland," concluded Trezise. The research underscores the need for strategic planning to address housing affordability and supply challenges in Logan as the city continues to attract new residents.