UDIA’s 2025 update to its Illawarra-Shoalhaven Building Blocks report shows how targeted Government investment into enabling infrastructure can help the region to deliver the majority of new homes required to support its 18,800 new homes target over the next 5 years.
“The Illawarra-Shoalhaven Housing targets require the region to deliver 42% more homes than have ever been delivered in a five-year period. UDIA’s research highlights the enabling infrastructure needed to unlock these new homes and provides the Government a roadmap for the region to deliver its five year Housing Targets,” said Stuart Ayres, UDIA NSW CEO.
UDIA partnered with Orion Group to identify and cost the infrastructure required to unlock planned greenfield housing fronts in the Kiama, Shellharbour, Shoalhaven, and Wollongong local government areas. The report finds that with upfront Government investment of $396 million, across 23 essential infrastructure items (including roads, sewer, water, and electrical infrastructure), 13,510 new dwellings will be unlocked over the next 5 years, or 72% of the region’s combined Housing Accord target.
An upfront Government infrastructure investment will be more than recouped through future developer contributions and state revenue like stamp duty, land tax and payroll taxes which only accrue to the Government when new homes are built.
“Government’s business as usual approach of waiting for developer contributions to accumulate before there is enough available to start funding a handful of these housing enabling projects is inefficient and means we will never deliver homes at the rate communities need them. It is also an unfair burden on the future homeowner to expect them to meet the full cost of new infrastructure,” said Stuart Ayres.
The clearest case in point that this report identifies, is the Western Ring Road, and its associated upgrades, which are currently expected to be funded out of Wollongong’s local contributions plan for West Dapto. This is an uncertain funding pathway given local contributions are forecast to be upwards of $80,000 per lot, which will likely mean many housing projects won’t commence and developer contributions will never be received. It is also an unfair outcome for industry and future West Dapto residents who would be solely burdened with funding the cost of a road which will benefit a wider regions beyond West Dapto.
“The Illawarra-Shoalhaven is an attractive and well-located place to live and work, but without further investment in enabling infrastructure we risk the opportunity to leverage the region’s natural selling proposition of its proximity to Sydney and Canberra, its diverse and unique economic base, and its stunning natural features,” said Stuart Ayres.
UDIA and Orion Group launched the 2025 Illawarra-Shoalhaven Building Blocks report at our Spotlight on the Illawarra event. The report can be found at this link http://UDIA and Orion Group will launch the 2025 Illawarra-Shoalhaven Building Blocks report
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Media Enquiries: Deanna Lane, Director of Media & Communications UDIA NSW and National dlane@udiansw.com.au 0416 295 898