T
he Queensland government has outbid 63 other buyers to purchase a derelict property in Cannon Hill for $3.3 million, more than three times the median house price in Brisbane.

    The site, on Wynnum Road, was bought by the government through an expressions of interest campaign, beating out builder-developers, private investors, and social housing providers. The sale represents a significant gain for the sellers, who purchased the property for $1.19 million during the pandemic in 2021.

    The property has been derelict for years after suffering fire damage and is zoned for medium-density residential development with a height limit of five storeys. It's located just 6km east of the Brisbane CBD and close to public transport, schools, and shopping centres.

    The government's purchase is part of a broader trend of increased intervention in the housing market, particularly in metropolitan areas where there is high rental stress and limited new supply. The sale was led by Tom Barr of RWC Queensland and Matthew Fritzsche of Ray White Special Projects Qld., who noted that the State of Queensland has emerged as a competitive and strategic purchaser in this asset class.

    The property's previous owner, Explorers Early Learning, had planned to build a childcare centre on the site but was seeking development approval. The government's purchase will allow it to secure a well-located urban site for future affordable housing delivery.