BRISBANE is facing a critical shortage of industrial land, with current supply set to disappear within five years according to a report prepared by SA1 Property and released last week by the Property Council of Australia.
Surging demand will see over 210 hectares, or an area more than three times the size of Victoria Park, absorbed annually across Greater Brisbane over the next five years.
Queensland Property Council Executive Director Jess Caire said that without a clear plan to provide well-located industrial land, this shortage would have an inflationary impact on the cost of goods.
“Queensland is in the midst of responding to a housing crisis, delivering on the Olympics and constructing a record infrastructure pipeline, however, one shortage that does not receive the attention it deserves is our critical undersupply of employment land,” Ms Caire said.
“The provision of industrial land may not be sexy and headline grabbing but it’s fundamental to our economy and the growth of our region.
“The groceries we order, the products we buy and materials we need to service demand are all developed in and transported through warehouses, distribution centres and manufacturing facilities.”
Ms Caire said if we do not have a plan to unlock job-creating industrial development, then the price of industrial land would increase, rents would increase, and Queenslanders would have to bear the cost.
“According to the data, the rents for premium industrial buildings have increased by more than 50 per cent since 2021 and this trend will only continue in future,” she said.
“The industrial sector is a critical employer providing 332,000 jobs across Brisbane and plays a fundamental role in facilitating development outcomes for all industries by enabling the production of materials essential in fuelling Queensland’s housing and infrastructure pipeline.
“When planning for future employment land it is essential we adopt a balanced and holistic approach and cater for future supply in well located areas proximate to demand, transport networks and jobs.”
City of Moreton Bay Mayor Peter Flannery said industrial land supply was critical to the future prosperity of South East Queensland, especially the City of Moreton Bay.
“As the third largest LGA in Australia, with a rapidly growing population, we need sufficient land to support job creation, business expansion and economic growth across the city,” he said.
“Recent data shows we’re being forced to turn away 60 per cent of industrial land inquiries due to a lack of available land.”
The Property Council is calling for a suite of policy interventions to support the delivery of critical new industrial land, including:
- A $500 million Industrial Infrastructure Fund.
- For the State Government to have an industrial strategy that facilitates the delivery of well-located industrial land.
- For the State Government to work with industry on a dataset that monitors industrial land supply.
