[+] Red Tape, NIMBYs Choking South Coast Development Pipeline

Tighter regulations and a NIMBYism is holding back property development on the NSW South Coast. Nevertheless, a number of infrastructure projects across the region, which encompasses the Bega, Eurobodalla and Shoalhaven local government areas, are underwriting the region’s future economic success. Gabe Reed, an associate director and senior architect with Edmiston Jones, says there has been serious pushback from the community to developments in recent years. “The councils are finding it hard to assess those projects and, as a result, many are forced to go to the Land and Environment Court,” he said. “We’ve been around for 40 years and previously we’d never had a project go to the Land and Environment Court. Over the past year, we’ve had five.” Resident opposition aside, MS Building Constructions director Martin Stewart says red tape is a handbrake on developments across the South Coast. The licensed builder and property developer specialises in residential apartments with from 3 to 10 units. He’s working on a $4-million project in Kiama, about 150km south of Sydney. ▲ A render of the under-way $30-million eco resort, Sapphire Batemans, at Batemans Bay. “It’s taken me three years to get a construction certificate to start my project, so it’s a long process,” Stewart says. “This is the problem at the moment with the introduction of new class 2 regulations. We’re the proving ground on how this classification achieves compliance. “It’s a learning curve for us as well as the consultants involved.” New requirements under the NSW government’s Design and Building Practitioner Act mean consultants including architects, builders and engineers involved in a class 2 project need to sign off each other’s work. Class 2 buildings are multi-unit residential buildings. The provision’s purpose is to improve construction standards. “There could be 15 or 16 consultants on a project, so this is really time consuming. The regulations have been updated a few times and sometimes you have to go back and forward between consultants to upgrade their reports,” Stewart says. “Once you get to the construction phase, it’s a cleaner and more responsible process. But getting from DA approval to construction certificate approval takes years, so it’s very frustrating.” It also adds to the cost to build, with Stewart estimating the new regulations have added 20 per cent to the cost of a project. “This eventually feeds through to the bottom line and higher prices for consumers, which impacts affordable living,” he says. ▲ Huskisson at Jervis Bay: infrastructure upgrades have reduced travel times from Sydney, making it feasible for Sydneysiders’ weekends. “This is completely against what the government is trying to achieve.” Reed says tighter regulations are also reducing the number of local builders who can work on jobs. “Because the builders need to have certain experience to be registered, we’re seeing a lot more Sydney developers and builders working on projects.” In terms of the residential development pipeline, PRD Real Estate chief economist Diaswati Mardiasmo says future housing supply across the South Coast is mostly units. “Some townhouses and stand-alone homes are in the mix, which will accommodate families. There’s also more than a 1000 new land lots ready to be developed, which means more homes in the near future.” As well, there is a healthy appetite for commercial properties in the area, but not as much supply, which supports a positive outlook, according to Mardiasmo. She believes infrastructure projects will likely drive the development pipeline through to 2025. “This is a good thing, as infrastructure development builds connectivity for business purposes and improves liveability for residents. “There is also almost equal investment expected between commercial and residential projects, which means people who choose to work on the NSW South Coast have a good chance of finding a place to live. “This is not something we would normally see; most of the time residential projects are left behind.” ▲ Infrastructure projects for the South Coast include a long-anticipated upgrade to the Nowra bridge. Able Walsh, a director of One Agency Elite Property Group, says infrastructure developments across the South Coast have vastly improved access to the Jervis Bay area in particular, a shade under 200km from Sydney. These include the completion of the Nowra bridge upgrade, the Berry bypass and the coming construction of the Jervis Bay Road flyover. “It’s made the trip from Sydney closer to two hours than three,” Walsh says. “So it makes it quicker for people to get here. It’s easy to split your time working from the office and working from home when you live in the area.” PRD’s intel shows there are three major hotel developments in the pipeline, the largest a $30-million eco resort, the Sapphire Hotel development at Batemans Bay. Meanwhile, infrastructure projects under way include a $88.5-million waste management centre, the West Nowra Resource Recovery Park. “Almost all commercial and infrastructure projects are in the Shoalhaven LGA, so that seems to be the hub that will carry NSW South Coast forward,” Mardiasmo says. You are currently experiencing The Urban Developer Plus (TUD+), our premium membership for property professionals. Click here to learn more.

[+] Red Tape, NIMBYs Choking South Coast Development Pipeline

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