A massive state-backed development project will transform a vacant government block in Banyo into a sprawling community of more than 450 new dwellings, bringing much-needed affordable housing and aged care to the area.
The state government launched its land activation scheme early this year to turn unused public land into private housing. Under this initiative, three separate developers will take over the former Energy Queensland property. AR Development Group is planning to build 207 townhouses on the 6.4-hectare site.
Rockpool Holdings will construct a 180-bed residential aged care facility, and Mission Australia Housing will add 64 affordable units for essential workers. Deputy Premier Jarrod Bleijie explained that the site attracted significant interest from the property industry, receiving over 150 expressions of interest from various groups.
Community Infrastructure Worries
Photo Credit: Economic Development Queensland
While the increase in housing supply is meant to address regional shortages, some Banyo residents are worried about the sudden population boom. Local resident Chris Vale expressed frustration over the scale of the project, which grew from an initial estimate of 400 homes to more than 450. Vale pointed out that modern households often rely on multiple vehicles, raising fears that local streets will not cope with the extra parking demand.
He also highlighted existing problems with the neighbourhood’s sewerage and stormwater systems, questioning how the older infrastructure will handle the massive influx of new residents. Furthermore, residents feel left out of the planning stages, claiming there has been zero public consultation prior to the developers being chosen.
Fast-Tracked Approvals
Photo Credit: Economic Development Queensland
In response to local concerns, the government confirmed that community consultation will take place during the next phases. Bleijie noted that the developers must submit their exact plans to Economic Development Queensland, the body responsible for assessing impacts on roads, traffic, flooding, and utilities.
To speed up the building process, the state has declared the location a provisional priority development area. This status allows the government to bypass standard council planning rules to get construction moving faster. Early groundworks are expected to begin within a few months, with major construction scheduled for the start of next year.
Changing Public Land Policies
The Banyo project is the first major test of a new policy that forces government departments to either use their land or surrender it for private housing projects. Since the start of the program, the state has released dozens of hectares to the market and is currently reviewing thousands more. While the scheme aims to boost the housing supply quickly, it does not strictly force developers to include public or social housing in their designs.
Shadow Housing Minister Meaghan Scanlon supported the inclusion of affordable units in this specific project but argued that strict rules should be in place to guarantee homes for working families across all state land sales. Despite the debate, industry groups like the Property Council of Australia praised the mix of housing types, noting that placing homes near public transport and existing jobs is the best way to address affordability.
Published Date 22-June-2026
