$10M infill development scheme to be extended until 2022
A PROGRAM which slashes infrastructure charges in a bid to drive development into Nambour and Caloundra is set to be extended, despite low uptake.
But a leading local real estate figure expects the low uptake trend to reverse, as major coastal centres become more built out.
Sunshine Coast councillors will decide on Thursday whether or not to extend the Infill Development Incentives Policy until June, 2022.
The policy was implemented in July, 2017, in a bid to encourage infill development in two of the Coast's major centres.
But since then only six development approvals had been granted under the policy, all in Caloundra.
To-date, two of the six approvals had been completed and realised incentives valued at $31,000, while the remainder could realise up to an extra $162,000 worth of incentives if completed in accordance with the policy requirements.
Real Estate Institute Queensland Sunshine Coast zone chairman Damien Said said the low uptake may have been due to development activity being focused in the "core areas” of Maroochydore, Bokarina, Brightwater and Birtinya.
"Infrastructure charges are a big impact on developers,” he said.
Mr Said identified Nambour as a good market place in future with its rail infrastructure, but the challenge for developers there was delivering affordable product.
He expected the policy to be taken up more strongly in the next six to 12 months and tipped Caloundra to continue to be one of the Coast's boom suburbs.
He said Caloundra's topography lent itself to infill development which could boast ocean views, particularly in Kings Beach.
The policy is limited to a maximum of $10 million in collective infrastructure charge reductions and incentives are granted on a first-in, first-served basis.
To qualify, proposed developments must be new building construction that will double the gross floor area of an existing building.
Mostly re-purposing an existing building would not qualify for the policy.
New building work would have to be "substantially commenced” by December 30, 2022, meaning foundations were more than 50 per cent complete to be eligible.
If extended, applications under have to be made between July 1, 2019 and June 30, 2022, and options were available for a staged payment of infrastructure charges to council.