Cairns development costs: Infrastructure charges going up for new subdivisions

A new Cairns Regional Council decision appears to fly in the face of the push to combat a housing crisis by quickly bringing new subdivisions online.

A NEW Cairns Regional Council decision appears to fly in the face of the push to combat a housing crisis by quickly bringing new subdivisions online.

Cairns Regional Council has traditionally charged developers less than the maximum infrastructure charges set down by the State Government in order to incentivise investment.

The tacit acknowledgment that Cairns is not Brisbane and margins are tighter in the Far North has been waylaid this year.

The cash-strapped council has been forced to slash its capital works program by about a third this financial year while drawing down $30m in loans and issuing a general rate rise higher than CPI for the first time in eight years.

Developers of new subdivisions are set to pay more under a new schedule of infrastructure charges. Picture: Brendan Radke

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Developers are also set to pay more with one industry insider saying the infrastructure cost for fairly standard new subdivisions could become about $6000 more expensive per block.

Infill developments like duplexes, tourism projects like hotels and resorts, and long-term accommodation projects like retirement villages and rooming accommodation will still be eligible for reduced charges when compared to the prescribed maximum.

Increasing development costs might seem counterintuitive during a rental crisis but the council is in a strong position with a 91 per cent increase in approvals for new homes over the past year.

“There were 931 new dwellings approved in the 2020-21 financial year, compared to 488 in the previous financial year,” a council spokesman said.

“The boom looks set to continue with 69 new dwellings approved in June, a 23 per cent increase on June 2020.”

Originally published as Cairns development costs: Infrastructure charges going up for new subdivisions