Development industry warnings of a “perfect storm” in terms of land supply in south-east Queensland were a furphy, and it was impossible to find facts to back the assertion up, Local Government Association of Queensland president, Cr Paul Bell said today.
“The LGAQ has commissioned a report by independent consultant Alan Morton which clearly shows the stock of land is increasing - not decreasing – while land sales are slowing and demand dropping dramatically,” Cr Bell said.
“It’s quite clear to most that the SEQ Plan 2009 shows adequate urban development capacity is available for the region,” he said.
“It’s just as clear that the development industry is responding to market conditions – slowing demand translates to a drop in land supply – and it has. The Morton report shows production by developers decreased by 5000 lots (or 32 per cent) in the past year and the number of blocks sold fell by 9000 (54 per cent).
“Councils have not, in any way, constrained land supply. It has simply been the market conditions.
“However, councils do understand that obtaining bank finance is a major problem for small and medium-sized developers.
"If the development lobby really wants to assist its members accessing bank finance for innovative new developments, especially low-cost housing, it should take up the problem with the federal treasurer.
“The LGAQ would support fully any moves in this direction.
“It would give the industry much greater credibility if it concentrated on helping its members, rather than focusing on non-existent land shortages.
“It strains the bounds of credibility to accept the development industry’s perspective of a so-called perfect storm in land supply,” Cr Bell said.
