A new site in southern Redland Bay is a priority growth area after government unlocked more than 5000 lots, but a lobby group says roads and transport systems need to be upgraded first.
It comes as Planning Minister Steven Miles and Redlands MP Kim Richards announced construction on a new wastewater management plant to service the area will soon begin.
Community Alliance for Responsible Planning Redlands spokesperson Lavinia Wood said roads in the Redlands were clogged and trains and bus services were inadequate.
"The Redlands is already under severe stress due to rapid population growth. All our major problems are due to having more people than the natural and man-made resources can support," she said.
The Queensland government is co-investing with Lendlease, in the staged delivery of the $30 million wastewater treatment plant.
The plant will service the Shoreline project, which includes residential dwellings, a town centre, potential primary school, and community and sports facilities.
Shoreline is set to feature around 3000 residential lots and become home for approximately 10,000 people.
"Our government's $15 million investment will mean we are able to continue to meet the demand of the growing Redlands population," Ms Richards said.
Mr Miles said people were moving to the state in droves.
"This has put pressure on available land supply," he said.
"Investing in this essential infrastructure will allow for the construction of up to 3000 residential dwellings, a town centre, potential primary school, and community and sports facilities.
"The infrastructure funding will also unlock an additional 2000 lots outside the master planned community," he said.
Ms Wood said the Redlands do not have the parklands, community and sporting facilities to support growth, and tree clearing was threatening wildlife with extinction.
"The population must be allowed to stabilise at near current levels, not forced to increase, until such time as our existing community is provided the infrastructure, jobs and services we need right now," she said.
Ms Wood said there was not enough jobs in the Redlands for the people in the area.
"Building houses is temporary work and when done there will be a large percentage of 38,000 more people looking for jobs too. No further population growth should be considered until opportunities for lasting local employment, particularly in tourism, are delivered for the people here now," she said.
Mr Miles said Lendlease anticipated more than 662 construction jobs and supply chain jobs will be generated per annum over the 20-year development lifecycle of southern Redland Bay.
The wastewater treatment plant has attracted criticism from some nearby residents who say the plan creates risk of flooding, mosquitoes and decreased property values, among other potential impacts.
Stage 1 works are expected to start late 2021. Redland City council will operate and maintain the plant.