Cairns housing construction rates hampered by land release rate, industry says
Residential dwelling approvals are outweighing land availability as industry experts question government strategies and vision on releasing new lots around Cairns.
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A stalemate between governments and the development and building industries is holding back residential construction in Cairns as a disparity between land and dwelling approval rates show demand is not being met.
While developers push for rapid release of serviced land, Cairns Regional Council is cautiously warning against further mass approvals.
Earlier this year it rejected a 700-lot development at Mount Peter, with an appeal currently winding its way through the Planning and Environment Court.
On the council’s own numbers, the organisation claims there are currently 6000 approved lots within the local government area that aren’t yet developed but would be ready for connection to infrastructure.
A council spokesman said these lots were in no one particular area and it was a matter for developers to explain why works hadn’t begun on the approved lots.
Mayor Amy Eden said over a five-year rolling average, 670 residential lots were being created per annum.
“That means, based on our average population growth rates, Cairns has plenty of supply to meet the housing needs well into the next decade,” she said.
While over the past five years in the Cairns region, on average, 737 residential dwellings have been approved per year, according to data from the Australian Bureau of Statistics.
The data suggests there is more demand for new homes than lots being made available.
Cairns Regional Council said within the region there was another 3000 lots “lying dormant” with access to services including water and sewerage, but without development applications; examples included empty privately-held lots within established suburbs.
But industry experts questioned those numbers.
REIQ Cairns zone chair Tom Quaid said demand hadn’t waned and questioned how much land was readily available for “ordinary people to begin construction on in 2025”.
“There might a lot of this land with development approvals, but is it commercially ready?” he asked.
“If we’re looking ahead at 2025, there wouldn’t be 100 lots available right now, ready to be purchased and built on,” he said, questioning the rate of operational approvals being granted to developments.
While the council was adamant ample supply of land was being made available, it recognised the urgency of releasing lots in the 3300ha Mount Peter Southern Growth Corridor – which was poised to deliver 18,500 new dwellings.
“One part of this solution is our unanimously endorsed advocacy strategy to secure a Priority Development Area declaration over the southern growth corridor,” a council spokesman said.
Urban Development Institute of Australia Cairns branch president Nathan Lee Long said the industry did not see a PDA “as suitable or necessary for Mount Peter”.
“In the industry’s perspective it means it’s a longer delay before any commitment can be made to facilitating any infrastructure to that area, because a PDA and its process goes back to the drawing board; and there’s a legislated process,” he said.
“But we have an opportunity where the new state government have committed $1bn for infrastructure funding in regional areas. We have a compelling case to be requesting our fair share of that funding to service that land.
“In talking to our members, and our affiliate peak bodies – my understanding is that yes, we have capacity in our workforce and trades to build more than we are.
“One of my members tells me, two years ago they built 120 homes, and last year because of restricted land supply they only built 80.”
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Originally published as Cairns housing construction rates hampered by land release rate, industry says
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