Developer cites Toowoomba Regional Council policy for delay of approved units

A recent council incentives scheme and the COVID-19 pandemic have been cited for why a developer needs more time to start two sets of unit approvals.

A set of four approved units in West St in Harristown.

A developer has asked for more time to build two side-by-side unit developments in Toowoomba, saying a council policy and the impacts of COVID-19 had required the delay.

Applicant Michael Robert Watt was approved in 2017 by the Toowoomba Regional Council for two unit developments next door to each other on West St in Harristown.

Now the developer has written to the council requesting a two-year extension for each approval, which adds up to seven units.

In a letter to the council, Alisco Designs’ Scott Keane said the council’s incentives scheme about five years ago had reduced the demand for units, thus making the approvals commercial unviable to start.

“At the time of the application being approved, the demand for residential accommodation was high,” the letter said.

“Simultaneously however, an influx of multiple dwellings during council’s incentive agreement period resulted in a vast oversupply of similar developments, making it unfeasible for construction to take place.

“As the oversupply of higher density developments materialised, demand for such tapered off and both property and rental values were impacted.

“These values have remained subdued over the course of the last few years and have made the project less economically viable in the current period.”

Mr Keane also said financial constraints and the impacts of COVID-19 had played roles in the developer’s decision to delay.

“Banking regulations and tightened borrowing policies have also added to these restrictions,” the letter said.

“The owner has had additional financial constraints due to the impacts of COVID-19.

“While it is understood that the current approval already includes a six-month automatic extension due to the impacts of COVID-19, the impacts of the pandemic upon employment, finances, income and lifestyle have been greater than anticipated.

“Granting an additional 24-month extension will greatly assist in the developer being able to construct the development and satisfy the growing needs for more affordable housing to suit.”