The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialClare BurnettTue 24 Oct 23

Charges Slashed to Incentivise Brisbane Developers

Brisbane Housing Company Chermside Development EDM

Brisbane is cutting its infrastructure charges in hopes of boosting development of new homes in existing inner-city, high-density and principal and major centre zones.

Speaking at the site of Brisbane Housing Company’s latest Chermside development, which will deliver 92 affordable and social homes, Lord Mayor Adrian Schrinner said it was essential to incentivise rather than tax developers.

“It’s really needed given our housing crisis and housing shortage. The other good news today is that the Brisbane City Council will be supporting this project with a reduction in charges of almost $1 million,” Schrinner said.

“It is critical right now. We know there are 3000 approved DAs since January last year and many have not been able to start. 

“There’s massive construction costs challenges on developments and when builders go to build new homes, they’re finding the cost of doing so much more than they anticipated, so they just aren’t going ahead.

“This is about bringing on supply sooner, bringing down the cost of housing and making sure more housing can be built at a time when it is critically needed.”

The Council had actually increased infrastructure charges in July this year, before announcing the cuts this week. But it remains to be seen whether this lever will help to balance out the construction cost increases that ratcheted up 30 per cent during the pandemic. 

Brisbane Housing Company projects director Greta Egerton said it was an important piece of the puzzle when working out feasibilities. 

“It’s really challenging to make our projects feasible at the moment,” Egerton said.

She told The Urban Developer that the council charge relief had helped BHC to deliver homes.

“For the three projects we’ve currently got in our pipeline we’re looking at [saving] just over $2 million.

“We’ve got a really strong pipeline of projects we’re wanting to deliver. All of the savings we’ve made through the infrastructure charge relief we will invest into affordable homes.” 

null
▲ Greta Egerton, projects director at Brisbane Housing Company, with Lord Mayor Adrian Schrinner at the company's Chermside development today.


Some of the practical changes that would be included following the introduction of the Brisbane Housing Supply Action Plan in August included a 75 per cent reduction for apartments up to two-bedrooms in inner-city, high-density principal and major centre areas that have been approved since January 2022, which also applies to build-to-rent projects. 

Approved projects will need to be completed within four years. 

There will be a 50 per cent reduction for apartments up to two beds approved from September 2023 onwards, again also including build-to-rent, and a 100 per cent permanent and ongoing reduction for registered community housing providers. 

New projects will need to be approved by June 30, 2025, and completed within four years from approval to access the 50 per cent reduction.

The plan also included the relaxation of rules around carparking and building height requirements—although it is unlikely that areas outside the city centre would be allowed Kuripla-style height changes. 

While these plans for height changes have yet to be finalised, Schrinner said that carparking requirements would be cut in areas with good public transport links.

“It’s something we’re looking at where there’s good access to infrastructure,” he said. 

“A good example is Kurilpa, [where there are] train stations, the metro will be running through there and there’s a lot of pedestrian and cyclist opportunities, so where there’s good alternatives there’s a requirement for lower carparking, which keeps the cost of building down too. 

“When we talk to people in the industry, each individual parking spot that’s built in a new development can add something like $50,000 to $100,000 on to the cost of each project. When you cut down those requirements, you’re bringing down housing prices and the cost of building and that helps bring on more supply.

“We’re only doing that in places where there’s good access to public transport, that’s not everywhere, but places like Kurilpa, and where we are at the moment in Chermside, people can get around here quite easily on public transport—they are the types of locations where we are reducing car parking requirements.”

ResidentialBrisbaneAustraliaPolicyPolicy
AUTHOR
Clare Burnett
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
The Sydney developer is pushing ahead with a project it picked up following the collapse of Dyldam in 2020....
LATEST
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/charges-slashed-to-incentivise-brisbane-developers