In an open letter to residents and property owners in Wynnum, the Wynnum & Districts Chamber of Commerce Redevelopment Taskforce has issued a warning that changes in the new City Plan for Brisbane will stifle redevelopment in Wynnum. We’ve reproduced the letter in full below. What do you think? Let us know in the comments section below.
Massive limitation to future Development in Wynnum – Are you going to lose 20-25% of your development yield?
Brisbane City Council has completed its community consultation following the advertising of the new Brisbane City Plan. It is expected the new plan will implemented anytime from the end of November 2013 to early 2014.
The new City Plan has increases in car parking ratios that make multi-unit residential unit yields drop significantly due to the increase in car parking requirements.
Landowners have until the current Town Plan is superceded (possibly as early as the start of December 2013) to lodge plans which utilise the current car parking rates and allow a density and yield that is financially viable.
An application lodged in 2013 under the current scheme will be current until mid 2018, and future proofs (land banks) the approval for a long time.
Once the new City Plan is adopted new applications will be very few and of significantly less yield, making those applications that have lodged and approved under the current City Plan more valuable.
Feasibility studies (supplied to BCC as a submission during advertising of the new City Plan) on standard 809sqm (32 perch) blocks show the returns drops from over 23% to around 5% effectively, making them unbankable.
Until Wynnum Central has enough unit approvals then the revitalisation of the retail precinct will not happen and Wynnum Central will languish in its current state of decay.
The Taskforce estimates that a minimum of 250 new units need to be completed to reach a critical mass of people which will ensure retail vitality, viable cafe precinct and better retail offering.
Applications must be submitted before City Plan changes.
The Wynnum Chamber of Commerce Redevelopment Taskforce has more information.
The Wynnum Redevelopment Taskforce