Queensland to Trial Inclusionary Zoning and Ground Lease Model

The Queensland Government will spend $350 million to create an infrastructure fund targeting private infill development to address the state’s housing shortage as part of its newly announced housing policy.

Premier Steven Miles said the government would also work towards a ground lease model pilot to unlock social and affordable housing opportunities on government surplus land, and an inclusionary planning pilot program to help educate developers on how the planning model can be adopted. 

It was part of a broader policy announcement from the state government called Homes for Queenslanders, which will spend $160 million on supporting the rental market, a further $390 million on homelessness services, and eight new youth foyers targeting young people at risk of homelessness. 

“The Infrastructure Infill Fund, combined with initiatives like the Ground Lease Delivery Model, will deliver more housing options in demand areas—close to schools, transport and healthcare,” Miles said. 

“This funding is in direct response to the feedback we’ve received from industry.

“As Queensland grows, so must our approach to partnering with industry players to unlock more social and affordable homes.”

Miles said developers needed to demonstrate returns to the Queensland community by facilitating smaller, more affordable and well-located infill developments. 

▲ Suburbs including Varsity Lakes, Pimlico and North Lakes have been pinpointed for inclusionary zoning pilot projects.

It’s in line with the state’s ‘gentle density’ infill development proposed within the South-east Queensland Regional Plan, released last year. 

A new State Facilitated Development Team would also manage five new pilot projects to test different models of inclusionary planning in Queensland. 

According to the State Government the pilot projects would target 20 per cent affordable housing products with incentives such as density bonuses and alternative carparking rates to test the commerciality of different models.

The Government will invite proposals for the first tranche of inclusionary pilot projects in areas including Varsity Lakes, Mango Hill and Pimlico. 

Minister for Housing Meaghan Scanlon said they wanted to partner with private-sector developers to create more housing diversity and supply.

“We want to create new opportunities in urban areas so that younger generations can enter the market, and older generations wanting to downsize can stay near their families,” Scanlon said.

“The ground lease model will also encourage new players and new investment into the housing market, and we are working hard to partner with the private sector to enable more housing supply, including social and affordable housing.”

Incoming Queensland Property Council executive director Jess Caire said the initiative would help to fast-track supply through reducting the “single biggest barrier to delivery–cost”.

“Research commissioned by the Property Council last year reinforced infrastructure charging relief as a key lever in facilitating development and fast-tracking new housing,” Caire said.

Planning Institute of Australia state manager Nicole Bennetts said the group had advocated for housing diversity in existing well-located areas and she welcomed the new initiatives. 

“PIA see’s further opportunities, such as to back-in the implementation of the recently released SEQ Regional Plan, and greater support for councils to update local planning schemes.”