Southport masterplan: Developers face ‘use it or lose it’ rules to stop land banking and stimulate construction in CBD

Developers who do not move to break ground on their projects will lose their approvals under a proposal being discussed to end land banking. FIND OUT HOW

Developers who do not move to break ground on their Southport projects will lose their approvals under a proposal being discussed to end land banking in the CBD.

Councillors will soon be presented with a revised masterplan for Southport which will look at how to revamp the business district and unlock billions in stalled developments.

Mayor Tom Tate said land banking – where developers gain approval for a project but never proceed with it – had gotten worse and had to be dealt with.

Mayor Tom Tate wants to end land banking in central Southport. Picture Glenn Hampson

Leading property firm Urbis has backed the proposal, saying the CBD needed to be activated and a far greater number of residential and commercial projects built.

Under the current system, approvals for developments expire after five years, but can be renewed essentially indefinitely.

Under the proposal to be considered by council an unused application would instead expire with no possibility for renewal, meaning projects would need to be resubmitted at substantial cost.

Mr Tate said the change would mean amending the rules of the suburb’s designation as a Priority Development Area (PDA).

ASF’s The AU tower was proposed and approved for a site in central Southport but never went ahead. It’s now on the market. Picture: Supplied

“We did the PDA back in 2013 and with good intentions but the only person who really grabbed it and ran with it was Azzura’s Robert Badalotti who has completed his first building (of the Imperial Square project) and is about to begin his next one.

“If we had more people like Robert taking up the PDA, Southport would be flying but instead people put in their development applications and increased their land value but did not have the intention to build.

Developer Robert Badalotti Picture Glenn Hampson

“If I had my time again I would have put a time expiry on those applications and now we might just do that.

“Let’s give them three years and if they don’t use it, they lose the benefits of the PDA.

“Obviously if they don’t want to do it, it reverts back to what it was and they’ll have to go through it again with the normal development application process, which will take them 12 months.”

Mr Tate said tighter rules were needed to ensure projects go off the ground.

Southport has struggled, with many empty shopfronts in recent years. Picture: Glenn Campbell

“Instead of going ‘oh we’ll give you a discount on infrastructure charges’ (to stimulate development), I say no we’ve done enough, use it.

“And if that happens and they don’t use it then the DA expires and they have to start again.”

The masterplan is expected to be unveiled in the first half of the year, with council hoping to bring it into place in 2026.

Among the key aspects it will deal with include relocating council’s headquarters on the existing site of Athol Patterson carpark, creating a legal and government precinct at the site of Mal Burke carpark and developing more hotels and residential accommodation within the city.

Developers and city leaders have long been disappointed by the lack of major projects completed in the nearly 12 years since Southport was given Priority Development Area (PDA) status by the state government.

Aerial photograph of the Star of the Sea site in Southport which is on the market. A multi-tower development planned for the site never proceeded.

Instead, some developers gained council approval for development applications to lift the value of their sites, before selling.

Urbis director Patrick Hefferan said the growth of Southport as a CBD had been hampered by slow development progress, social issues and the economy.

“(There has been) slower development progress than anticipated due to a range of reasons including confidence in the scale of some of the developments, international landowners / funding not looking to act in the short term, project feasibility due to construction costs and labour availability, and a lack of stimulus in the CBD to grow with so many approvals not acted on,” he said.

Mayor Tom Tate is expected to unveil the masterplan for Southport later this year. Picture Glenn Hampson

“This impacts confidence in the CBD as well as investment interest.

“Some larger approvals haven’t been acted on, leaving key sites undeveloped and this has a negative ongoing impact on investment attraction as well as growth of the CBD.”

Mr Hefferan said redrafting the PDA would deliver a greater impact.

Options he proposed included more specialist night-life developments, rapid approvals for projects which are able to demonstrate a willingness to begin construction and encouraging economic development.

“Innovative, tall, densely populated and mixed-use developments should be strongly supported and swiftly assessed, particularly where evidence of intention to build immediately is demonstrated,” he said

The Cienna development never proceeded. Its site recently sold to a developer who is planning a tower.

“Specialist locations for night-life development and streamlined approvals for proposals which clearly align with PDA requirements and market needs, particularly key worker housing, seniors housing, student accommodation, entertainment venues, A grade office space, opportunities for low scale, opportunities for on street dining to activate streets should all be encouraged.”

He said changes would help unlock key projects.

“The use it or lose it approach is complicated, though intention to progress must be shown by land owners to progress approvals,” he said.

“Invest Gold Coast and Council can work with landowners to gauge motivations and encourage engagement from landowners and to support local landowners who develop smaller sites generating growth.

“They can work with the state to unlock sites for swift provision of community facilities for homeless and those with rehabilitation needs.

“Look to attract Council, state and government offices and staff to generate business movement which will have a multiplying effect with more local daily consumers and visitors.”

Billions of dollars worth of development projects have been approved for Southport since the Priority Development Area (PDA) was introduced in 2013 yet many have never progressed.

THREE NEVER-REALISED PROJECTS

CIENNA (CIENNA GROUP)

A twin tower which, had it been built, would have become the tallest tower on the Gold Coast. First proposed in 2015, Cienna was to feature two towers, the largest of which was expected to top 88 storeys. The other would be 38 levels. The development had been earmarked for a 4300sq m site between Young, Nerang and Garden streets and include a mix of retail and commercial spaces to podium level, with the towers to contain residential accommodation. The site sold to a developer, who intends to build on the site.

STAR OF THE SEA (GARUDA)

Resort and lifestyle precinct proposed in 2015 by Huixin Real Estate Group, through its Australian arm, Garuda GC. The developer paid the benevolent Catholic order the Sisters of Mercy $27m for the land and demolished the former school in 2016. The sites is on the market, with agent Roland Evans recently confirming renewed interest since an indoor arena was proposed for Southport.

THE AU (ASF)

A giant gold complex planned for Southport. Featured 66-level and 15-level towers. Project approved by council in 2016 but work never began. The site went on the market in 2024.

Originally published as Southport masterplan: Developers face ‘use it or lose it’ rules to stop land banking and stimulate construction in CBD