[+] Hamstrung: Greenfield Developers’ Infrastructure Handicap

It should be a simple Keynesian equation. Nationwide there are crippling housing shortages and high demand—but getting new communities out of the ground has never been tougher. The cost and time involved in landing rezoning approval and supporting infrastructure to site is proving a serious problem for greenfield developers, who face years of delays waiting for road and sewer infrastructure to begin. South-east Queensland developer KDL Property Group is one of a growing chorus calling for greater action on delivering infrastructure ahead of greenfield developments. KDL Property Group chief executive Kent Leicester says ambitious housing targets will fall short without significant investment in infrastructure to support new communities in emerging regions. “The commitment by governments to address housing supply is commendable but it is not going to be achieved without addressing some of the infrastructure shortcomings, which can hinder and add cost to property developers, such as connecting residential estates to water and sewer infrastructure,” Leicester says. ▲ KDL Property Group chief executive Kent Leicester says more needs to be done to address key infrastructure in emerging communities. “In Queensland, the State Government has committed $100 million for councils to share funds to improve local infrastructure such as road maintenance and water supply. “But this seems too little in the state’s south-east where the rapidly growing population is already bursting at the seams.” Leicester says council infrastructure charges are also adding about $30,000 to the cost of each lot delivered in south-east Queensland. It comes hot on the heels of AV Jennings announcing it was pulling out of its option to deliver 3500 houses in a 30,000-strong housing project, Waraba, north of Brisbane. The company blamed rising infrastructure charges, but long delays in approvals were also believed to play a part in the decision. Work on Waraba finally began just three months ago, 20 years after the site was first gazetted. ▲ Lennium Group broke ground at Lilywood Landings estate in February. And it is expected to take up to 40 years to deliver the housing for the forecast 70,000 residents of the region’s newest city. But many of the developers who have been chipping away at the project for up to two decades are unlikely to see its completion in their lifetimes. Last week City of Moreton Bay Mayor Peter Flannery lambasted the Queensland Government, saying “we will not meet State Govenrment mandated housing targets if a pipeline of catalytic infrastructure is not prioritised now”. Flannery was one of 11 south-east Queensland mayors who converged on State Parliament calling for more infrastructure funding in support of housing targets. “City of Moreton Bay has done the planning and we know what we need to manage impending growth. We have 12 growth fronts but all of these are in underdeveloped areas,” Flannery says. “The fact of the matter is land can’t be turned into housing without infrastructure. Developers need certainty. They can’t just sit on paddocks and wait for their day in the sun. “We really need the Bruce Highway Western Alternative (BHWA) and Buchanan Road projects to come online to facilitate housing. “The state has been talking about the BHWA for years but it’s just another case of infrastructure lagging behind privately funded development.” ▲ Trask Land director David Trask is active in the Moreton Bay region and says more needs to be done to reduce delays for greenfield development. The Urban Developer understands that the landowner of the site that AV Jennings had an option on remains committed to delivering housing at Waraba. When completed, Waraba will be the size of Bundaberg, providing 30,000 homes for about 70,000 people. Speaking at The Urban Developer’s property leaders lunch recently, Trask Land director David Trask said anything that was impact assessable was causing blowouts in planning timeframes. “When I first started it used to be a handshake with a farmer and you could have marketing and sales ready to go within 12 to 18 months—now it’s a five-year process,” Trask said. “Time is money. It’s already difficult enough for us to get projects out of the ground.” And with a 12,000-lot pipeline, Trask said the industry needed a more streamlined approach to planning and infrastructure delivery. HB Land national development director Peter Johnson agrees. “If you honestly want to unlock housing you need a taskforce or a group of people whether it be a council or a state government or a cultural heritage person and you can go to that person and say, ‘We’re locked up here’,” Johnson said. “It could only be a short-term thing, not long term but to unlock supply over the next three to five years, you just need to change the culture. “We started the business about four years ago from a standing start, so we’ve been through Covid, the boom, the bust. We have about 12 or 13 projects at various stages of development at the moment.” Meanwhile, Queensland’s population continues to surge. More than 110,000 people are expected to relocate from other states during the next five years, adding pressure to the Sunshine State’s housing pipeline. The Albanese Government’s Federal Budget wound back its funding commitments for major infrastructure projects in Queensland. Premier Steven Miles is due to hand down the State Budget on June 11. ▲ The City of Moreton Bay is pursuing a polycentric city format of multiple hubs across the region, with significant population growth mooted for the area. Property Council of Australia Queensland executive director Jess Caire says “no community is immune to the housing crisis, and local government plays an important role in our collective response to delivering the homes needed”. “We have seen some really positive announcements from councils in response to the housing crisis, including infrastructure waivers, planning reforms and partnerships with the property sector,” she says. “We know responding to the housing crisis will take a concerted effort from all levels of government and industry and so this is an important conversation and there is no better time to have it on the back of council elections and approaching a state election later this year.” Flannery and the mayors from Logan and Ipswich will join The Urban Developer managing editor Taryn Paris in a panel addressing housing supply on Tuesday, June 4. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

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