Construction begins on brand new Aussie city as buyers line up.

Construction has started on a new town in Queensland, where sections are available for less than $300,000 - that could give young Australians a chance to own their own homes. 

A major earth-moving project is underway to develop Waraba, a new town located an hour's drive north of Brisbane, which could eventually accommodate up to 70,000 residents. 

Formerly known as Caboolture West, the City of Moreton Bay Council approved the town's development unanimously on June 14.

The council estimates that 30,000 dwellings will be built across the 3,156-hectare site over the next 40 years. This would make Waraba comparable in size to established cities like Coffs Harbour and Bundaberg. 

Waraba's first neighbourhood, Lilywood Landings, will feature a childcare centre, a service station, and 228 residential plots.

Each plot will be at least 375 square meters, large enough for a four-bedroom, two-bathroom home, and will start at a price of just $280,000.

Over 1,000 inquiries have been received by developers Lennium Group, who anticipate that the first residents will move into Waraba by mid-2025.

'This will offer buyers a very affordable entry into the new home market with the land suitable for the majority of three to four-bedroom family homes,' development manager Ian Worthington said.

Queensland's population is set to explode during the next five years as more than 100,000 people move there from other parts of Australia for warmer weather and more affordable housing.

Budget papers predict that over the five years leading up to 2028, Queensland's population is projected to grow by 110,900 people. 

Oxford Economics Australia's senior economist, Maree Kilroy, said strong interstate migration into southeast Queensland would boost property values across the state.

'Demand fundamentals are expected to remain strong, with Queensland positioned at the forefront of population growth,' she said.

'The soft near-term supply outlook means pressure on the housing stock is set to continue, creating a solid foundation for further growth once the current monetary policy tightening cycle reverses.'

Brisbane's housing market has surged in recent years, with prices increasing by more than 55 per cent since the Covid pandemic.