Queensland Coastal Boom: House Prices Surge Amid Planning Challenges

In Queensland, a remarkable surge in coastal growth is reshaping the housing market, particularly in towns like Yeppoon and Agnes Water, where skyrocketing demand has led to significant increases in house prices and mounting planning challenges for local councils. According to the Real Estate Institute of Queensland, Yeppoon's median house price has risen by 12% to $680,000 as of March 2025, reflecting a broader trend impacting the entire Queensland coastal region. This influx of new residents, driven by post-pandemic lifestyle changes, is projected to push Yeppoon's population from approximately 40,000 in 2021 to 63,000 by 2046, significantly exceeding state averages.

The Livingstone Shire Mayor, Adam Belot, described the current demand for housing as "unprecedented," prompting the council to adopt rare planning powers to rezone rural land for residential use. Mayor Belot stated, "It’s beyond what I’ve ever seen in 30 years. Buying a block of land averages over $300,000, and with construction, prices can exceed $900,000. This poses a real challenge for potential homeowners."

Local councils, including Rockhampton Regional Council, are struggling to manage the deluge of development applications. A spokesperson for Rockhampton Regional Council noted a temporary halt on accepting new building applications, citing "resourcing constraints" as the primary reason for the freeze. This has raised concerns among developers, who are finding it increasingly difficult to navigate the approval process. Private town planner Stephen Enders, representing the newly formed Gladstone Agnes Water Development Group, highlighted the significant number of appeals lodged against the Gladstone Regional Council, noting that 19 appeals have been filed in the past three years. He emphasized, "This represents the difficulty in getting approvals through council, leading developers to seek judicial recourse."

To address these challenges, the Queensland government has initiated public consultations on a statewide housing code aimed at standardizing planning rules across local governments. This move is intended to streamline the development approval process and alleviate some of the administrative burdens currently faced by councils. However, the discussions surrounding development are contentious, with community groups expressing concerns over potential overdevelopment in sensitive coastal areas.

As the coastal towns of Queensland continue to attract new residents, the balancing act between development needs and community concerns remains delicate. The outcomes of the statewide consultations and the efforts by local councils to adapt to this rapid growth will likely shape the future of housing in Queensland’s coastal regions. If not managed effectively, these challenges could lead to housing shortages and increased tensions among residents, developers, and local governments alike.