Is it Good for Business, or is the Scope Too limited?
It sounds like an opportunity has opened up in Qld with the State Government introducing what appears to be a generous fund to help facilitate an increase in housing development to areas that have potential to be developed or redeveloped to meet affordable housing goals and the demand for housing in Qld.
In a nutshell, the 15 page guidelines downloaded from Govt website provides the following summary:
Homes for Queenslanders (H4Q) is an orchestrated approach to fast track one million new homes over the next 20 years. The Incentivising Infill Development Fund (the fund, or the IIDF) is a $350 million fund to incentivise infill development that will deliver new housing in the right locations. We need to support more housing and housing choice on land that is underutilised or can be redeveloped and renewed.
Providing more housing choice will help meet the needs of our growing population with changing demographics. Our preferences for how we live are changing and we need different types of homes to allow people to live in the neighbourhoods they know and love throughout the various stages of life.
It will mean more opportunities for:
- Key workers to live near where they work.
- First homebuyers to enter the market.
- Increased ability for retirees to downsize but stay in their neighbourhood.
- Investment in both new and established communities.
The fund will support the viability of residential development that can increase housing density and diversity where we need it. Market ready projects which increase density in areas with high demand may be eligible for support, including relief from council infrastructure charges.
For developers who would undoubtedly seek to take advantage of the incentive offered by the program, there are limitations and timeframes that the Govt have imposed on the ability to claim a grant to pay for infrastructure charges and council development fees.
It would appear that most of the attention will be placed around the Brisbane infill market and some other high density areas, which negates small developers due to the size, complexity and scale of constructing multilevel residential buildings in busy city suburbs. For example:
-
- Bowen Hills
- Fitzgibbon and Carseldine Village
- Northshore Hamilton
- Mackay Waterfront
- Parklands
- Southport
- Woolloongabba & Yerong
The opportunity for regional grants for infill development is the area with most potential considering much of the population growth will occur in regional areas due to the historical demand and perceived lifestyle advantages. More precisely, the Govt explains the fund as follows:
This fund is a targeted stimulus style package aimed at supporting residential
projects that are currently uncommercial or unviable that can demonstrate how
infrastructure charge relief would materially shift the proposal into delivery and
mean more homes on the ground, faster.
ELIGIBLE DEVELOPMENT ONLY
This is where the focus needs to be for any developer or property owner intending to capitalise on the grant, but at a glance, it would appear the eligibility criteria may be difficult to comply with, and the risk of relying on the grant too great considering the Govt have particular clauses that disclaim any commitment to their scheme.
To be eligible, a project must be consistent with the objectives of the fund; and
- Be in Queensland; and
- Be for a material change of use (MCU) or reconfiguring a lot (RaL); and
- Be well-located residential development (this includes the residential component of a mixed-use
development); or - Be accommodation for workers or tertiary students and near major employment centres such as (but not limited to) tertiary institutions, hospitals and medical precincts, or in high-tourism areas; and
- Be for dwellings other than luxury housing; and
- At the time of the application for funding being decided:
-
-
- construction for a MCU has not started. IIDF Guideline, DHLGPPW, May 2024 (V1.0) Page 6 of 15
- for all other development, the levied charge has not become payable under the Act.
- Development must be able to meet the milestones within the relevant specified period identified in Table 1
-
A copy of the guidelines can be downloaded HERE for those who are interested in reading more about the grant for infill incentive development fund. The outcome is to provide further housing to a State that is part of a national under supply of about 1,000,000 homes over the next 5 years.
Much needs to be done economically, and with interest rates on the rise, insufficient building industry workers, high material costs and a declining global economy, the ability to buy a home may need some creative thinking.
How can we assist you?
If you have land in excess of an average size allotment that you would like to develop or sell, please get in touch. If there’s a positive solution that appeals or compliments your own plans, we would be happy to discuss our skills and possible involvement further. Get in touch today!
