Sunshine State needs 30-year land plan

The head of leading Queensland housing developer Villa World has urged the State Government to consider a 30-year plan for the roll out of development land.Speaking at the Morgans Business Breakfast in Brisbane, Villa World CEO and managing director Craig Treasure said Queensland’s housing market was challenged by limited supply.Mr Treasure also called for the delivery of key infrastructure and more certainty around approvals.He said the issues needed to be addressed in the interests of affordability and sustainability.“If we don’t tackle these issues in the short term, the medium to longer-term scenario will look more like Sydney where the cost of comparable house-and-land packages is almost double the prices here,” he said.“In Queensland there is limited land supply, less efficient infrastructure delivery and less certainty in approval outcomes.“I hope the positive changes in these areas made by the previous government will be continued.”Mr Treasure encouraged the Government to take its cue from planning reforms in Victoria.“I have a view that the Queensland Government would do well to look closely at some of the positive planning reforms in Victoria that have delivered a 30-year development land supply, well serviced by infrastructure.“When we invest capital in Victoria, we can do so with great certainty.”Mr Treasure said he hoped the State Government would honour the infrastructure commitments set in motion by the previous government.“Our Queensland political scene will hopefully move into a more settled period and we look forward to seeing how the new Labor government implements its policy of jobs growth, particularly in the new housing market,” he said.Mr Treasure encouraged further discussion after Federal Treasurer Joe Hockey’s recent suggestion that first home buyers be able to access their superannuation early to get a foothold on the property ladder.“Further dialogue is needed in regards to this issue,” he said.“We have regulated to allow private super funds to borrow to acquire investment properties.“Frankly, I would prefer that Gen Y were able to access part of their savings to buy their first home or consider the possibility of using super fund savings in a mortgage offset account making them more bankable.”Mr Treasure said the record low interest rate climate had had improved housing market sentiment and the level of inquiry for Villa World product, particularly in Queensland.“We have certainly experienced an increase in demand since the rates hit the record low levels,” he said.“However it’s my firm view that we will sell more property in a stronger economy which may require interest rate rises.”Villa World recently posted a half-year net profit of $13 million and has upgraded its FY15 profit guidance to at least $28.5 million before tax.The company, which joined the S&P/ASX300 earlier this month, reaped $26.7 million from an equity raising in January that was five times over-subscribed, and a further $5 million from a Share Purchase Plan to retail investors.Founded in 1986, Villa World is Queensland’s oldest ASX-listed developer and one of Australia’s largest housing providers.