Brisbane’s property market has reached record highs, with property developers increasingly turning to licensing agreements, rather than acquiring them outright, to build their new homes.
Brisbane has seen a dramatic increase in residential construction, and is now home to more than 40,000 apartments.
The rise in the numbers of new residential units has fuelled the growth in property prices.
“This boom is a real boon for the local economy,” said Brisbane City Council housing spokesman Mark Gidley.
Property developers are turning to deals with large companies to get around the local planning restrictions, which require developers to obtain a licence before building on a residential property.
They can then apply for a licence to build on the site and then use the land to build the next property.
The Brisbane City Planning Commission has said it has not received a single application for a new property licence since the CBD was declared a protected site in January last year.
In a submission to the planning commission, a company called Vantablack said its building plans would allow for a total of 5,000 units.
Its plan is to construct 7,000 dwellings in the CBD by 2020, with 1,000 of them on a scale equivalent to the CBD’s current population.
It said the city was in a unique position to “provide a sustainable and affordable home for people living in the city”, and that it would seek to develop new, smaller, and smaller-scale apartments.
Vantablacks plans would include: The construction of an affordable housing complex in the inner city, and the construction of a community centre in the northern end of the CBD, which would have a capacity of 1,500 people, and an average price of $2.5 million.
The company said it was also considering a project on the outskirts of Brisbane’s CBD, with an area of 1.5 hectares, which is the size of the outer suburbs of Mount Druitt and Sturt.
If successful, the project would include 1,800 affordable housing units and a public space, including public gardens and a large park.
Other developers looking to build in Brisbane include Brisbane Real Estate Group and Avantgarde Properties, which are both working on a project at the north end of Brisbane City.
Avantgardes has also announced plans for a residential project on a vacant lot on the north-west edge of Brisbane, with the intention of building 400 homes.
It said it had secured $150 million in financing and is aiming to commence construction by 2020.
Rental homes in Brisbane are often available for rent for just $1,400 a week, while condominiums are usually $1.5 to $1 million a unit.
According to the Brisbane City of Industry and Innovation, there were 9,929 residential units in Brisbane in the first half of 2020.
Of those, 4,988 were in multi-family dwellings, and 1,547 were single-family detached dwellings.
But there is a big divide between those with homes and those without.
There are just 9,722 multi-unit dwellings in Brisbane, and there are just 1,715 single- and three-bedroom detached dwellings in town.
Most people who live in Brisbane don’t own a property, and many of those who do live in multi family dwellings.
There are about 1,600 people who are in a three-bed apartment, and about 3,600 in a two-bed unit.