NOOSA PLAN 2020 PROPOSED AMENDMENT NO. 2 - POST PUBLIC NOTIFICATION FOR FINAL STATE GOVERNMENT MINISTERIAL APPROVAL · Report

SPECIAL MEETING                                                                12 DECEMBER 2024


Heads raised concerns with loss of character, amongst other issues.

Response
Since drafting the proposed amendments all costs have risen including construction, land costs and
holding costs so further feasibility considerations have been undertaken.

Whilst making dual occupancies inconsistent on lots 600sqm or greater and mandating small
dwelling provisions are well intentioned and seek to achieve greater small dwelling supply, cheaper
construction costs for larger dwellings and higher sales prices, with the additional costs of kitchens
and bathrooms required for more small dwellings all impact feasibility and development potential.

The current small dwelling bonus incentives have been successful in delivering a greater diversity in
small dwellings.
Given the uncertainty of market conditions, significant rise in construction costs and changes since
drafting the amendments, mandating small dwellings; requiring 3 or more dwellings on small lots;
and making dual occupancies inconsistent on lots 600sqm or greater; is considered a potential risk
to development. Mandating these requirements could possibly lead to poor quality building
outcomes or sites not being developed at all.

Allowing the landowner/applicant to opt in for the small dwellings bonus provisions where feasible is
a more flexible approach and responds to changing and uncertain market conditions, particularly on
smaller lots. If the small dwelling bonuses are feasible and provide a return on investment, they will
be taken up, as has already occurred over the last few years.

Notwithstanding this, lots of 1000sqm or greater have the potential for a minimum of 3 or more larger
dwellings or a greater number of small dwelling. Dual occupancies on sites over 1000sqm are
considered an underutilisation and should be inconsistent above this lot size.

Recommendations
It is recommended that a change be made to the proposed amendments in response to submissions
to:
   •   retain the current Noosa Plan 2020 small dwelling bonus provisions as opt-in rather than
       mandatory in the Medium and High Density Residential zones;
   •   make dual occupancies consistent on lots less than 1000sqm in the Medium Density
       Residential zone; and
   •   make dual occupancies inconsistent of lots 1000sqm or greater in the Medium Density
       Residential zone.

8. Affordable Rental Premises and associated bonus provisions, including building height
The advertised amendments proposed
   •   a definition for affordable rental premises requiring management by a registered housing
       provider as long term rental for a minimum of 30 years;
   •   optional development bonuses in the Medium and High Density Residential zone if providing
       10% of the total GFA as affordable rental premises;
   •   optional development bonuses including an additional storey (2m) in height on key sites if
       providing 20% of the total GFA as affordable rental premises.
Submissions
Most submissions were supportive about doing something about housing affordability, however
many stated housing would never be affordable due to land and construction costs. Submissions
raised concerns with the feasibility of affordable housing citing there was not enough scale and the
incentive bonuses did not go far enough.
Car parking in centre zones was identified as an obstacle to feasibility.