'Govt must release more land'
12:00a.m. 29th February 2008
An investigation into housing affordability on the Sunshine Coast has revealed the State Government must slash land tax and release more land to ease the crisis.
The study comes as Your Coast Your Say survey results indicate 67% of residents are extremely worried about the issue of housing now and in the future.
Maroochy mayor Joe Natoli yesterday promised if re-elected, he would organise a forum with all levels of government to investigate why supply is not meeting demand.
The Housing Affordability on the Sunshine Coast report was released by the University of the Sunshine Coast and funded by the Investa Proprety Group.
Report author Doctor Alan Moran said it was clear the State Government needed to release more land immediately to address the “intolerable situation”.
But one real estate leader says young homebuyers need to lower their expectations.
He accused the State Government of being almost solely responsible for house prices doubling in the past decade because they had created an “artificial scarcity” of land.
“The housing has become unaffordable on the Sunshine Coast, there’s no shortage of people prepared to build there, no real monopoly in terms of anyone price gauging and there are plenty of builders,” Dr Moran said.
“Because authorities have restricted land availability, the prices are higher now than they have ever been in Queensland.
“The solution is to release more land, if that doesn’t happen the prices will continue rising and rising.”
Dr Moran estimates if only 2% of the Sunshine Coast is urbanised, the government would only need to release another 1% to bring down prices to an affordable level.
He said that could potentially reduce the cost of a block of rural land to as little as $1000.
“It will get worse unless government policies change,” he said.
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Recent Comments
No way - release the land, even cut the prices back to what's sensible - homeowners won't be affected because they're living in their homes anyway.
A lowering of expectaions does not mean you have to live in a squalid little box of a house somewhere out in the scrub. A nice little 3 bedroom house at a price you can afford is fine as a starter for the young. Look at the big picture.
You're young fit healthy and still want to go out and have fun etc. With a massive mortage that eats up most of your pay packet each week and leaves no real room for disasters, personal or otherwise surely must weigh heavily on those who had to have it all right now.
Keeping up or trying to keep up with the Jones is not the way to start out. If I was in the position of being young and fit I would snap up a house that has potential for some good renovation work to be done on it.Bit by bit it truly becomes your dream home and YOU did it.
To achieve this required medium and long term vision, a skill that seems unachievable by all forms of government, but we can live in hope.
The coastal strip development of the past three decades needs revision and the only alternative is the rail corridor.
To kick-start this the state government must consider placing the new hospital and associated infrastructure and west of the Bruce Highway near Chevellum.
Those developers, in turn, will release it when it suits them. What suits them is anything which will maximise the price which they get for the land when they eventually sell it. The best way to maximise profits is to drip feed the supply.
The end result? A continued scarcity of homes and a bigger "Land Bank" for the developers. And total loss of control over development by the Council and Government.
I am convinced that the only answer to this is for all three levels of Government to get together and take this issue by the scruff of the neck themselves.
Can’t anyone else see that this is not actually a solution: it just pushes the problem into the future and makes it bigger, while destroying our environment and using up our resources.
We need a real solution to this problem, not just a continuation of destructive patch-up jobs that keep most people borrowing more and more money, while making some people very rich at their expense, and destroying the environment on the way.
This problem requires a big overhaul of how our society and its economic system works, or it will never truly be resolved.
See also my comment on http://www.thedaily.com.au/news/2008/feb...
Also these Developers have absolutely massive ' Land Banks in NSW - some great research on this subject was done by the Total Environment Centre in NSW a couple of years ago. Stockland is very much to the fore on this plus some other big major players in the game .
Yet they continue to go to State Governments and Local Councils crying " poor mouth " and want costs reduced all the time . Those costs of developing are still there but guess who has to pick up the Tab ?
Yes - YOU and ME . residents in Maroochy Shire have copped their ( developers debt ) for infrastructure for years.
Why do you think your Rates are as high as they are ? Well there is your answer $140. million of developers infrastructure debt over 30-40 years. Even now , I am informed headworks charges are now only 75% of the full cost --so guess again who is picking up the other 25% --you and me !
There are probably a few thousand other blocks already built on with Res A houses which have a higher zoning for 2 - 3 storeys units in Maroochy Shire not as yet developed .
Destruction of our Natural Environment doesn't even enter these guys heads - Lifestyle - Open vistas - potential of increased flooding - they won't be living here so they don't care . Greed, Greed Greed !!!
And politicians at all levels and the Media believe them without doing their homework
and finding out the true facts.
It is sad day when our universities become mindless cheerleaders for the development lobby.
The price of housing will come down only when we once again treat housing as shelter and home and not as a tax avoidance/minimisation scam. We have the highest housing costs in the developed world and it not due to a shortage of land despite what Dr Moran tells us.
I agree with Sunnyone - young families wanting to get into the market should be looking at the big picture - why put yourself under the pressure of a $500-$600k mortgage on Kawana Island or Buderim because "that's what Mum & Dad are in" or "that's what my friends are doing"?
Look at starting with a townhouse or a 3 bedder to get you into the market & still have a life. Then in a couple years upgrade. Mum & Dad may live in a million dollar property now, but I would bet when they were your age they were in the same boat as you. That's the thing with property - it's all relative, just the dates change.
In no other area of basic necessity would the government allowing hording by a few to the detriment of the majority. Get rid of tax minimisation schemes, force developers too release the land and allow everyone to have a roof over their head It isn't bloody rocket science - it's people's lives and wellbeing.
Firstly it would be nicer to have more treed mountians that cane or emptied flat land and secondly surely it would be cheaper to develope and build on flat land rather than sloped.
Thirdly, there should be a time limit on lot development approval where if approved land is not developed and put on the market by a certain time, the zoning goes back to the old one with no fee refund and the developers will then need to go through all the rezoning process again.
canberra (the ACT) had the best system in the 70s and 80s- the government developed the land and sold it - there was never a shortage and never gross profits. maybe we should resume the land the developers haven't released and have the government (either council or state) sell the land to all buyers - at just above cost.
I am working in the property industry at the moment I have seen first hand the time it takes for pen pushes in Maroochy Shire to sign off on land sub divisions. They make promises of deadlines but let them pass without a care in the world.
Moving on ; The recent doubling of land and house prices here has been caused by some upfront costs that are carving into affordability. Before the era of hot properties, backyard blitz, hot auctions and all the other "flip and profit shows" housing was reasonably affordable and had not diverted too far from the long term median trend.
Now every other person on the street has an investment property and this has quickly created a pricing bubble.
To return to the trend line, prices will have to stagnate for quite a while or values will actually have to come down or both.
Keep in mind that Real-Estate commission, Council fees and state Gov stamp duty would have risen proportionally in the same short time. Hard to justify when the services being provided are essentially the same or reduced in some areas.
Add to the burden the increased bank fees and inflation on building materials then slap GST on the whole lot.
Oh …and Hex fees. Too bad if you want to start a family as well.
Sheesh! Wonder why affordability is an issue?
The no nett change budgeting policy.
Council annually and incrementally increases fees on anything that is not owner occupied whilst reducing the same saved amount on principal places of residency.
State Government does the same thing with Stamp duty with no nett loss.
Federal Government scraps first home buyers and puts the money into low cost public housing for those with their backs to the wall. At the moment all of the Prime Minister’s children would be entitled to the non-means tested rebate.
Federal Government annually and incrementally increase Capital Gains Tax on investment dwellings, whilst ratcheting down on tax write offs associated with dwellings.
In combination these measures would take the hot air out of the housing market, over time
The enactment of some meaningful legislation capping fees on residential loans for principal place of residency and some stringent measures to, "encourage" ,developers to release a minimum number of available lots.
Review of the Real estate commissions, these people are making a motza for providing the same old service and they're still insisting that we pay to advertise, essentially what they've been commissioned to sell in the first place!
As for the younger folk and their spending habits....wake up and smell the roses...they all have a budget choice and accordingly you can choose to live the high life or go live out in the sticks.
Alternatively we could carry on business as usual and our kids can own their home at 55, pay off the car at 60 and clean ot their hex bill at 65 and hope that they can afford the shool fees and health in the interim. Don't mention the plasma !
BTW. John I've seen small developers sit on reasonable size parcels for years, then they had to scurry because of the "use it or lose it" decree.
Then having subdivided the newly created lots have sat there growing grass for many years since. These aren't pen pushing delays and if what others are saying is true, then the larger developers could be accused of holding the community to ransom just to bid up profits.
Canelands can't be used because of flooding, but there's no reason golf courses, caravan parks, sports stadiums or rehabilitated green space etc. couldn't be made viable.
I'd like to see a University study on this, surely the developers would be lining up to fund that one!
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