Springfield Rise, one of Ipswich’s largest master planned communities, is set to change hands after the Australian Competition and Consumer Commission (ACCC) approved a $1.3 billion acquisition by property giants Stockland and Supalai.
ACCC Greenlights Deal
The acquisition, which is expected to be finalised by the second quarter of 2025, will see 12 Lendlease master planned communities across Australia, including Springfield Rise, transferred to the joint venture between Stockland and Thai-listed developer Supalai. This deal follows a five-month investigation by the ACCC, initially raising concerns about competition in areas like Ipswich.
Stockland is already the dominant developer in Ipswich, controlling communities such as Kalina, Providence, and Botanica.
Despite initial concerns, the ACCC concluded that the acquisition would not significantly reduce competition in Ipswich, with sufficient alternative developers in the area to keep the market balanced. However, as a condition of the approval, Stockland will be required to divest its Forest Reach project in New South Wales to address competition issues in the Illawarra region.
Impact on Ipswich and Springfield Rise
Springfield Rise, currently owned by Lendlease, is one of Ipswich’s most established master planned communities. The deal will likely shift Stockland’s market power further in Ipswich, where it already owns significant developments.
The ACCC had initially feared that removing Lendlease as a competitor might give Stockland more control over housing prices and supply in the region. However, the commission ultimately found that competition would remain sufficient to safeguard consumers.
Stockland’s expanded portfolio will include Springfield Rise, Kalina, Providence, and Botanica in Ipswich and other major estates in Moreton, Logan, and Redland. Once fully developed, these estates will collectively house over 200,000 residents.
Broader Queensland Housing Market
This acquisition comes amid a broader housing crisis in Queensland, where property developers are grappling with constrained land supply and increasing demand. The Property Council of Australia recently released a report highlighting that Queensland has missed out on 33,000 new homes over the past eight years due to unfavourable tax policies for developers.
The Property Council has called for a review of state taxes on property developers, arguing that current taxes have deterred international investment and slowed the pace of housing construction. According to the report, developer taxes introduced in 2016 have caused an 83.9 per cent drop in overseas investment, costing the state $17.8 billion in housing investment.
Future Developments
Stockland’s acquisition is part of a broader strategy to increase its focus on residential development. The company is shifting a larger portion of its portfolio towards housing projects, particularly in Queensland, where demand continues to outpace supply.
Stockland’s CEO has stated that the company plans to move away from single-dwelling homes and towards high-rise developments to meet the needs of Baby Boomers who are downsizing. With Springfield Rise now part of Stockland’s expanding portfolio, the company is positioned to significantly address the region’s housing needs.
Published 1-Oct-2024
