Buranda parent,former school P&C Association president,and now Greens candidate Sally Dillon said the decision showed persistent communities could fight overdevelopment.
"We,the Better Buranda community group and the school's P&C Association,have been pressuring the state government not to sell that land to the developer,"Ms Dillon said. "And that is what has happened.
"They have given in to the community pressure and refused to sell the land to Wee Hur.
"The local MP,Jackie Trad,came to the school and announced it this morning."
Ms Trad confirmed the Department of Transport and Main Roads land had been withdrawn by the state government after development deadlines passed.
She questioned Brisbane City Council's decision to approve Wee Hur's 20-storey block next to the school,saying:"I think that was totally wrong."
Lengthy negotiations between the Department of Transport and Main Roads and Wee Hur have continued since the call-in options fell due.
Ms Trad said the department had decided not to sell the surplus land,and Education Queensland had been approached.
"Education[Queensland] have essentially asked for the land,because it is right in front of the school,"she said."They have said inner-city schools are bursting at the seams and we would like this land."
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Ms Trad said negotiations were always complex.
"As the local member,can I say we all could have done a whole range of things better – the council and the state government,"she said.
"I absolutely believe we should have made better,community-informed decisions.
"There are many people who have worked tirelessly on this issue,and I am delighted to have been able to play my small part in helping to deliver a fantastic outcome for our local South Brisbane community."
Both Ms Dillon and Ms Trad said they would talk to the school community about the land.
Wee Hur toldThe Australian Financial Review in December 2019 that Brisbane's CBD was close to capacity for student accommodation,and future decisions needed to be strategically chosen.
Wee Hur has been approached for comment.