‘Golden opportunity’: Cairns council CEO digs in on $450m housing plan

Angry developers have confronted Cairns Regional Council at a stakeholder meeting, arguing that it’s failing to meet an urgent demand for housing despite unveiling its $450m plan to boost supply earlier this month.

Cairns Regional Council wants builders and developers to back their plans for the city’s southern growth corridor. Picture: Brendan Radke

Angry developers have confronted Cairns Regional Council at a stakeholder meeting, arguing that it’s failing to meet an urgent demand for housing despite unveiling a $450m plan to boost supply earlier this month.

But the council has argued that further construction in the city’s southern growth corridor can’t start until it receives funds to build critical infrastructure.

Around 50 industry leaders attended the public meeting on Spence St last Thursday with more than 70,000 new residents expected to call Cairns home by 2050.

Urban Development Institute of Australia Cairns branch president Nathan Lee Long challenged Cairns Regional Council on its plan. Picture: Brendan Radke

During question time, the Urban Development Industry of Australia’s (UDIA) branch president Nathan Lee Long took aim at the council for failing to address the housing shortage, with building approvals having dropped 14.5 per cent last year.

“It’s about meeting demand and need and that’s what the big issue is,” Mr Lee Long said.

“It’s a failure to deliver infrastructure at the right time.”

Under its Securing Cairns’ Housing Foundations plan, the council is seeking $300m from the state and federal government with $150m from the council to cover stage one of development between Mount Peter and Gordonvale.

Mr Lee Long said the industry hadn’t been adequately consulted about the plan – which will create 3,800 new dwellings – before it was announced.

“I struggle to see how an industry can have trust and confidence in this proposal when it’s not open and transparent and the advice and concerns of the industry have been ignored,” he said.

Cairns Regional Council executives met with developers and building sector representatives on Thursday. Picture: Brendan Radke

In response, council CEO Ken Gouldthorp said construction can’t start until works on sewerage, water, roads, and other community infrastructure is underway on the city’s last major greenfield development site.

“The hard reality is that the council can’t approve lots until we can service them,” Mr Gouldthorp said. “This whole program is about how we can put infrastructure in the ground to service them.”

Cairns Regional Council CEO Ken Gouldthorp is calling for a “consolidated approach” as the council enters a critical phase in its negotiations with federal candidates for Leichhardt. Picture: Adam Yip

Support from the building sector was vital, Mr Gouldthorp said, with the potential to build a total of 18,500 dwellings in the region.

“We’re asking you to get on board because at the end of the day we’re going to the state and federal government with some very big asks,” he said.

“We have a golden opportunity with the state and federal government focused on opening housing supply. We have an opportunity to seek funding that will assist us to open this corridor.

“We need a consolidated approach from Cairns to get their support.”

LNP candidate for Leichhardt Jeremy Neal says his party wants to see more detail before locking in $150m to expand the southern growth corridor. Picture: Brendan Radke

The LNP’s candidate for Leichhardt Jeremy Neal said his party still needed to crunch the numbers further before committing to the project.

“We obviously sat down with (shadow treasurer) Angus Taylor and we said can we break this down into stages, and now the biggest (question) is ‘what’s the government input per house output?’” Mr Neal said recently.

“We need to make sure those numbers line up, but we are making some very positive steps towards that and we’ll be helping to support as much as we can.”

Labor Candidate for Leichhardt says he supports Cairns Regional Council’s plan but has yet to commit funding. Picture: Jason Edwards / NewsWire

ALP candidate Matt Smith backed the plans but fell short of committing funds on Tuesday.

“Ultimately that’s where Cairns’ growth is going to have to go,” Mr Smith said. “So, yes. We will be supporting that.”

“But no announcement will be made today. We’re still working through that process.”

Median rental prices have jumped 55 per cent over the last five years while median house prices have risen by 84 per cent over the same period.

Cairns currently has a 0.8 per cent rental vacancy rate.

Originally published as ‘Golden opportunity’: Cairns council CEO digs in on $450m housing plan