Source: Financial Review
ASX-listed developer Peet Limited is set to release 1700 more housing lots in the Flagstone satellite city development in Logan as development accelerates in the area following a new $1.2 billion Queensland Government and Logan City Council infrastructure commitment.
Logan, about 35 kilometres south of the Brisbane CBD, has long been one of the strongest south-east Queensland growth corridors.
It now has even more reason to surge following May’s infrastructure deal, in which the state government, Logan council and nine key developers agreed to deliver essential infrastructure including local roads, water and sewerage facilities for the Yarrabilba and Greater Flagstone priority development areas.
Peet, which alongside Lendlease is one of the nine developers in the deal, welcomed the 1700 new homes to be built across stages 2 to 5 of its Flagstone new town development.
The new approval includes the development of Flagstone’s third neighbourhood shopping centre, its first community centre on a 5000 sq m site and a main road extension. Flagstone has 50 hectares of public open space.
“Flagstone and Yarrabilba are in Queensland’s fastest-growing population corridor, with estimates that by 2066 there will be 200,000 people living in these areas,” Queensland Minister for State Development Cameron Dick said in May.
Mr Dick also said the two areas had the highest interstate migration in Queensland.
‘Major growth corridor’
Another developer committed to the deal, Villa World, and its joint venture partner, Sydney’s Rich Lister Perich family, expect the development to take off in Logan.
The pair already has a joint venture to build the $650 million, 1500-lot Covella community in Greenbank, which has also commenced in the Logan area.
The 27-stage project, which has a combination of lot sales and house and land packages, welcomed its first resident last year.
“We knew the greater Logan area was going to be one of the major growth corridors in Australia in coming years, but the infrastructure plan has certainly accelerated the opportunity for us in this area,” Perich family patriarch Tony Perich said.
“We certainly see similarities with the Greater Logan areas like Greenbank where Covella is located and Oran Park, which we have been developing for many years now.”
Mr Perich’s family business has experience with new suburbs having built Oran Park, one of the newest suburbs in Sydney’s south-west. The family also owns the Narellan Town Centre, just south of Oran Park.
Villa World’s Queensland development director Peter Johnson said the deal would fast-track growth in the region at a speed that developers could not do themselves.
“This is the biggest infrastructure agreement in the country between a state government, council, developers and landowners and it has been a very clever way to manage the growth of the region,” he said.
This is not the first time the state government has injected infrastructure spending in Logan.
In 2017, they committed $285 million for roads.
As the Sydney and Melbourne housing markets slowly revive, Brisbane and its surrounding areas are poised for price and demand growth because of their affordability, QBE said this month.