The state government of Queensland has determined South East Queensland (SEQ)'s Southern Redland Bay as a new priority growth area for infrastructure funding.

Steven Miles, deputy premier and minister for state development, said the government will invest in infrastructure to unlock over 5,000 lots, improving land supply and housing affordability in the region.

"Our strong health response to the COVID-19 pandemic has people moving to Queensland in droves," he said. "This has put pressure on available land supply. "

The infrastructure project at Southern Redland Bay is expected to accelerate land supply in SEQ, which will help boost housing and affordability. Stage 1 of the construction is expected to commence in late 2021.

The project will start with the staged delivery of the $30m wastewater treatment plant, which is in partnership with Lendlease.

"Initial works at the plant will support around 30 direct jobs and 49 indirect construction jobs, helping with our region’s economic recovery. Investing in essential infrastructure is part of Queensland’s COVID-19 Economic Recovery Plan," Miles said.

Miles said investing in this essential infrastructure will allow for the construction of up to 3,000 residential dwellings, a town centre, potential primary school, and community and sports facilities.

"The Growth Areas Team, along with Economic Development Queensland, has been hard at work partnering with local governments, industry and the utilities sector to accelerate land supply in SEQ,” he said.