Key Takeaway Points
- Queensland’s new Land Activation program aims to increase and fast track housing development across the State.
- The initiative works by identifying and releasing underutilised Government land into the private sector for housing development.
- Industry may participate by providing proposals to Economic Development Queensland.
- Round Two of the Residential Activation Fund likewise seeks to increase Queensland’s housing supply.
The Land Activation Program (LAP) is a new Queensland Government initiative which identifies and releases underutilised Government land to the private sector for development, aimed at increasing housing supply and tackling Queensland’s housing crisis. The initiative commenced in early February this year and is overseen by Economic Development Queensland (EDQ). Industry participants are also able to identify sites that may no longer be necessary for Government purposes and submit proposals to EDQ for their release.
The LAP has recently released a 1.1 hectare site on Station Parade in Varsity Lakes with the capacity for up to 250 homes. Registration of interests are currently open ahead of development proposals being sought in May 2026.
In this article we provide an overview of the LAP in conjunction with the commencement of Round Two of Queensland’s Residential Activation Fund (RAF).
How does the LAP work?
EDQ is responsible for the administration of the LAP and will use its powers under the Economic Development Act 2012 to gradually release Government sites to the market.
Under the LAP, private sectors can participate at the earliest stage by providing EDQ with proposals that identify Government sites for the purpose of the initiative. EDQ will then investigate these proposals and the nominated sites using clear criteria to advise on its suitability for housing and whether the site is in fact underutilised within 30 business days.
Qualifying sites under the LAP will include land:
• that is no longer needed for present or future Government operations or has failed to be used to its full potential;
• who’s owning Department has no reasonably foreseeable use for the site;
• that can prospectively deliver housing, even as part of a mixed-use development; and
• which the EDQ has identified a land activation strategy for.
The LAP going forward
The Property Council of Australia is of the view that the LAP will be make a meaningful contribution to the delivery of housing for Queensland’s growing population.
However, concerns have been raised as to the lack of an ‘affordable homes mandate’ in the LAP, meaning developments are not obliged to include social and affordable homes.
As the LAP progresses, practical questions also arise as to how many sites are likely to enter the pipeline each quarter and how quickly sites will transition from identification to market release. These are critical matters to be observed as the LAP expands.
Residential Activation Fund
Round Two of the RAF commenced on 23 February 2026. After the success of Round One, the State Government continues its collaboration with industry to release underutilised government land to the private sector. A total of $500 million is available in funding for trunk and essential infrastructure and is to be allocated equally between Southeast and regional Queensland.
Revised guidelines released for Round Two include:
• extending eligibility to projects with preliminary approval;
• distinguishing trunk infrastructure from essential infrastructure;
• capturing electrical and telecommunications infrastructure as essential infrastructure;
• changing the commencement deadline to 12-months from the point of announcement rather than 12 months from the date a Funding Agreement is entered into; and
• reducing the contingency requirements from 30% to 20% of the Estimated Total Project Cost.
To be an eligible applicant of RAF you must be either:
- a local government constituted under the Local Government Act 2009 or the City of Brisbane Act 2010; or
- a developer or landowner with a registered company in Australia with approval for a residential development in Queensland.
This initiative likewise aims to prioritise new residential development and accelerate housing supply across Queensland.
This initiative likewise aims to prioritise new residential development and accelerate housing supply across Queensland.
These initiatives look to support Queensland’s growing demand for housing and infrastructure and combat the current shortages across the State. Understanding the relevant qualifications, eligibility and guidelines are important for developers who seek to participate in these new initiatives.
Next steps
Our Property team is happy to assist if you have any queries about how the LPA and RAF may assist or impact your future developments.
