TRC offers big discount to developers planning new units

Just 0.3 per cent of Toowoomba rentals were vacant in May leaving hundreds of families without a warm, dry place to call home. Could this hefty discount supercharge the local residential construction sector?

DEVELOPERS planning to release new land for medium density housing have received a discount to the cost of doing business which the TRC hopes will fire up the construction sector and ease Toowoomba’s rental crisis.

The Toowoomba Regional Council yesterday voted to endorse a 70 per cent discount for infrastructure charges for new medium density approvals, a 50 per cent discount for existing development approvals and a 30 per cent discount for duplexes.

The cheaper rates attach to the cost of subdividing residential land and bringing it to market, but not to the building’s actual home.

They will be in place for two years and will be reviewed when the total value of money saved by developers hits $3.5 million with a view to extending it if it is providing value for money.

The council also backed a 50 per cent discount to operational works fees to take effect for 12 months.

It will also seek ministerial approval to streamline development of Emerging Community zoned land, which is estimated to affect about 7700 housing lots across Toowoomba and outlying towns and rural communities.

The suite of discounts was endorsed unanimously at a special meeting in the council chambers and will be moved to a formal vote to become policy next week.

The discounts for new medium residential developments were initially less generous, but Planning and Development Committee portfolio leader Bill Cahill floated an amendment to prompt developers to act sooner.

“If we are to send a clear message to the community and development fraternity, I think it appropriate for us to look at assisting and incentivising those efforts,” he said.

“History and statistical evidence shows us that these measures look to give us the greatest yield for new dwellings on the ground.

“We know there has been a drought on, the times are changing around the price points for this type of development.”

Hodge Real Estate's Edward Hodge.

It is hoped the discounts will ease the pressure on the rental market as Toowoomba has one of the lowest vacancy rates in Queensland.

SQM Research estimated that less than 0.3 per cent of rentals were vacant in May.

The move was welcomed by developer and Urban Development Institute of Australia Toowoomba branch president Edward Hodge who said it would lead to more rental homes in the market.

“From the UDIA’s perspective they are positive measures to counter the pressure we are all facing with housing supply,” he said. “This is the result of a lot of collaboration between the UDIA, the council and organisations like the Chamber of Commerce, and measures like this are very positive for the city.

The council is making an effort to incentivise more supply, just as all councils in Queensland are coming up with their own measures.

“Each area has its own difficulties, but this will contribute to bringing on more supply for the city.”