Is proposed major Appin development unaffordable pipe dream? Planned water infrastructure costs highlight massive costs of new housing developments
Posted on: 12.05.2023
The massive infrastructure costs of new greenfield housing on the outer fringes of Greater Sydney has been laid bare, with the required infrastructure contributions for water and sewer highlighting Appin housing may just be a pipe dream.
The new contribution scheme would most greatly impact the State-led fast tracking of the Greater Macarthur Growth Area, and the cost would ultimately be passed on to homebuyers.
Mayor Matt Gould said, “The reality is that providing infrastructure in new greenfield developments costs money, and ultimately someone has to bear the burden.”
“This report suggests that $1.5 billion may be required just for water and sewer, plus $1.3 billion for local infrastructure. That is not even taking into consideration the billions of dollars in other state infrastructure that is needed for transport, schools, hospitals and other essential services for these new communities.”
“We really have to question whether this project is too expensive and whether we should focus that money on areas that are already zoned and housing in metropolitan areas that already have basic services available.
“The NSW Premier is on the right track with his approach to the housing supply issues facing our state, with a plan to build affordable, social and universal housing on surplus public land close to existing public transport hubs where possible. This would unlock housing supply in those areas where billions have already been spent.”
“When it comes to Appin, developers can’t afford it, the State government can’t afford it, and Councils definitely can’t afford it - so we have to question why it is this area is a priority for growth for NSW.”
“We need to slow down so we can get the infrastructure right for the future residents of these new communities and for the broader Wollondilly Shire.”
“There already a shortfall in funding for infrastructure at Wilton and opening up another massive development front at Appin will only see growth areas competing for the same inadequate bucket of money to vital infrastructure in place.”
The re-introduction of water and sewer charges was a recommendation of the NSW Productivity Commissioners 2020 review into infrastructure contributions. Just like local infrastructure contributions, this funding is vital to build successful communities.