Two additional major developers have publicly highlighted the severe impact of skyrocketing infrastructure costs on Waraba, a new satellite city north of Brisbane anticipated to rival the size of Mackay.
This follows a recent withdrawal by developer AVJennings, which abandoned plans for 3,500 affordable housing lots in the area, citing excessive costs and lengthy approval delays.
Developers Call for Government Intervention
Brent Hailey, Managing Director of Orchard Property Group, urged the government to assist with substantial infrastructure projects, deeming them too costly for individual developers. He explained that developers in Waraba face dual financial burdens: local council charges and state government fees, as the area is designated a Priority Development Area (PDA).
Mr Hailey noted that PDA charges surpass local government fees, adding significant expense.
The pandemic brought unexpected hikes in costs, further complicating infrastructure development. Mr Hailey detailed how Orchard invests heavily in essential utilities like water and sewerage for its $43 million Lilywood estate in Waraba.
Despite these challenges, he affirmed Orchard’s commitment to its projects, which contrasted with AVJennings’ decision to exit.
Meanwhile, Lennium Group remains optimistic about its Waraba ventures, having commenced significant earthworks earlier this year. Ian Worthington, Lennium’s Development Manager, reported substantial progress on their largest community, Lilywood Landings, which will offer 228 affordable housing lots. He acknowledged the hurdles faced due to escalating infrastructure costs but confirmed that these would not deter their ongoing developments.
Local Government and State Responses
The City of Moreton’s Mayor, Peter Flannery, criticised the State Government for the infrastructure cost escalations. In response, Local Government Minister Meaghan Scanlon pointed to a forthcoming $100-million infrastructure support package for Councils to alleviate some financial pressures.
As Waraba’s development continues, the dialogue between developers, local councils, and the state government remains pivotal in addressing the affordability and feasibility of expanding Brisbane’s northern corridor.
Published 2-June-2024
