THE flight to affordability has helped Peet Group lock in 33 sales in a weekend marking the first land release at the $6.7 billion Flagstone estate.
The 33 lots, close to the new Flagstone CBD, were among 35 to hit the market and among them were the first 300sqm blocks in the area.
The latest sales mark a new era of small-lot development in Queensland's south-east, indicating buyer appetite for the low-cost housing model.
The ambitious Flagstone City project, which will deliver 12,000 new homes to Logan City on Brisbane's southern outskirts, is a joint venture between Peet and industry superannuation giant MTAA Super.
The development is the centrepiece of the Queensland Government's biggest Priority Development Area, Greater Flagstone, which is expected to house 50,000 people once completed.
The project has brought some of the cheapest urban land to the south-east Queensland market, with land prices starting at $129,000.
Most blocks at Flagstone are 420sqm and priced from $386 a square metre, or almost $140 per square metre lower than the median land price across Southeast Queensland.
This compares with the $554 per square metre average median price paid by new home buyers nationally.
Peet Group says there also has been strong early interest in Flagstone from builders with more than 50 per cent of lots in the 26-lot display village sold. The village is scheduled to open next year.
Flagstone, located in Jimboomba near one of the biggest industrial development zones in Australia at Bromelton, will be anchored by a 126ha commercial centre, which Peet Group CEO Brendan Gore says will become a 'brand new city' for the region.
"Early settlers moving to Flagstone have a rare opportunity to own land close to the centre of this brand new city," he says.
"For homebuyers who are happy to take a longer-term view, that kind of opportunity is rare in anyone's lifetime."
Flagstone City will provide around 20 per cent of housing in the Greater Flagstone region, and most of its retail and commercial services, with homes for 30,000 people and a target of 10,000 jobs by 2043.
Over the next 30 years, the Greater Flagstone region is expected to support 120,000 people, 50,000 new homes and bring 30,000 jobs to Logan City, one of the fastest growing local government areas in Australia.
The Flagstone region covers 7188ha, enough to accommodate a population the size of Toowoomba or Cairns.
Gore says Flagstone is one of the company's most significant projects and a major investment in the future of Logan and south-east Queensland.
"After a very thorough period of planning and design, it is tremendous to see construction under way and to offer the first homesites for sale," he says.
"Flagstone will help shape the future of south-east Queensland and we expect it to be a model for safe and secure living, and be able to provide the necessary affordable housing and social connections for new residents.
"The masterplan will roll out over decades. What we are doing right now is ensuring that it meets the needs of today's market and anticipates what future homebuyers and business owners will expect."
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