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Building Blocks 2021 Illawarra Shoalhaven

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BUILDING BLOCKS A PRACTICAL APPROACH TO INFRASTRUCTURE AND LAND SUPPLY Illawarra and Shoalhaven Edition August 2021 UDIA BUILDING BLOCKS NSW ILLAWARRA & SHOALHAVEN Message from the CEO Steve Mann UDIA NSW CEO The Illawarra Shoalhaven is at a crisis point as we face a rapidly decreasing supply of serviced land for development. The critical shortage of greenfield housing extends throughout the region and is having a major impact on deteriorating housing affordibility. House sales have seen up to a 50% lift beyond market expectations and we are well ahead of projected lot releases. This is the result of a combination of factors including record low interest rates, regional migration, government home purchase incentives and COVID-19 induced demand for space. Our 2018 UDIA NSW Building Blocks report proposed several enabling infrastructure projects for the Illawarra Shoalhaven to support greenfield housing in the key urban release areas. Over the past three years, not much has changed. In-migration is increasing, as people look for regional housing solutions out of Sydney. Whilst there have been lots released in West Lake Illawarra and apartment development in the Wollongong CBD and Kiama township, the pace of development is not keeping up with demand and house prices continue to climb. Over the past 12 months, we have seen house prices rise by more than 20% in Shoalhaven and 12% in Wollongong. Kiama now has an average house price of $1million. In June 2021, the Minister for Planning and Public Spaces released the Illawarra Shoalhaven Regional Plan 2041 and in August 2021, Transport for NSW (TfNSW) finalised the Illawarra Shoalhaven Regional Transport Plan. UDIA NSW supports these plans and our new Building Blocks Illawarra Shoalhaven 2021 report, prepared in collaboration with Cardno, identifies the critical enabling infrastructure needed to further support up to 500,000 people that will live in the region by 2041. To help achieve this, we request Government commits $136.6 million for six recommended water and sewer projects that will unblock 11,600 lots by 2024 in the West Lake Illawarra and Nowra-Bomaderry Urban Release Areas (URA). Illawarra and Shoalhaven With no funding allocated in the NSW Budget 2021-22 for critical enabling Partner water and sewer infrastructure to support growth in the Illawarra Shoalhaven, we are concerned that the region will continue to suffer from rising house prices, home rental increases, housing stress and homelessness. The development industry will also suffer due to a dwindling greenfield pipeline and a direct threat to construction jobs. The NSW Government needs to take urgent action to ramp up the delivery of enabling infrastructure to avoid dire consequences for jobs, housing affordability and the wider economy in the region. The recent announcement by the Minister for Planning and Public Spaces to establish a Regional Housing Taskforce to identify solutions to improve housing supply in regional NSW is a positive step and this Building Blocks report will be a key advocacy tool for the region. 2 UDIA BUILDING BLOCKS NSW ILLAWARRA & SHOALHAVEN Above: Coast, Manyana by Fountaindale Group Cover Image: Coast, Manyana by Fountaindale Group 3 UDIA BUILDING BLOCKS NSW ILLAWARRA & SHOALHAVEN West Lake Illawarra West Lake Illawarra is the primary Urban Release Area (URA) in the Illawarra Shoalhaven region and is proposed for 20,000 dwellings, or 60% of the total 30,000 new houses to be provided in the region by 2041. There are still large areas of unzoned land at West Lake Illawarra, including Calderwood, Cleveland, and Avondale. We have focused on the enabling infrastructure required to support zoned areas at Yallah Marshall Mount, North Macquarie and Tullimbar, which can result in greenfield housing being released in a three-year time frame. Building Blocks Illawarra Shoalhaven 2021 recommends four key critical infrastructure projects for the West Lake Illawarra URA, unlocking 8,100 lots within three years, and more in the medium term. These key projects are critical because without them development cannot proceed. The projects are: 1. Kembla Grange and Yallah Marshall Mount Sewage Pumping Station and associated Trunk Gravity Mains Capacity constraints require a major investment to ensure future development at Huntley, Cleveland and Avondale can proceed. There is also no capacity available to service proposed development at West Dapto Stage 3 and Yallah Marshall Mount. 2. Avondale Reservoir and Trunk Main Without a new reservoir, supply and pressure issues will continue to restrict development. 3. Calderwood Sewage Pumping Station, Rising Main and Trunk Main Future development on the northern side of Calderwood Road, including Town Centre East and the proposed school sites, are reliant on the future Calderwood sewage pumping station (SPS). The pump station was originally to be commissioned by end of 2021 but this has now pushed out to 2026 based on the latest Sydney Water Growth Servicing Plan. 4. Mt Terry Water Lead-In The Mt Terry Water Lead-In is required to service elevated pockets of lots within Calderwood especially those lots above Raised Level (RL) 60m. LOT YIELD PROJECT (UNLOCKED LOT YIELD COST PER INFRASTRUCTURE COST STAGE WITHIN 3 (TOTAL) LOT YEARS) Kembla Grange and Strategic $56M 5,000 14,500 $3,860 Yallah Marshall Mount Planning SPS and associated Trunk Gravity Mains Avondale Reservoir Option $20M 5,100 7,700 $2,600 and Trunk Main Planning Calderwood SPS, Strategic $18M 1,900 4,500 $4,000 Rising Main and Trunk Planning Main Mt Terry Water Lead-In Concept $2.6M 1,200 1,200 $2,170 Planning TOTAL $96.6M 8,100* 19,000* $5,080 avg * Some of the projects above have overlapping catchments for the lots benefitted. The total lot calculation seeks to ensure that lots are not double counted. 4 UDIA BUILDING BLOCKS NSW ILLAWARRA & SHOALHAVEN West Lake Illawarra The map below shows only those lots which are within the direct catchment of the projects listed. Lots not benefited by these projects have not been shown. Mount Cordeaux Kembla Cordeaux Kembla Heights Heights Farmborough Dombarton Heights Unanderra Kembla Grange #_ Wongawilli Brownsville Berkeley Avon AY RW TO MO ES C IN Horsley R West Dapto 1 and 2 P Kanahooka Y Urban Release Area A W H Kembla Grange and G I YMM SPS Project H S Approx. 14,500 Lots E Huntley C Kembla Grange N I SPS Catchment R West Dapto 3 P Dapto Urban Release Area Cleveland Koonawarra West Dapto 4 Urban Release Area Avondale Reservoir Project Avondale Approx. 7,700 Lots !* #_ Yallah Yallah Marshall Mount SPS Catchment Marshall Mount West Dapto 5 Haywards Bay Urban Release Area #_ Calderwood SPS Project Approx. 4,500 Lots Calderwood Calderwood Avondale SPS Catchment Reservoir Catchment Oak Flats Macquarie Pass North RA ROAD Macquarie TONGAR Blackbutt Albion Park I W L LA A RR Rail A H IGH WA Calderwood Albion Park Y Urban Release Area Tullimbar T Tongarra E Mt Terry Lead in R R Project Y S Approx. 1,200 Lots T R E Tullimbar E T Urban Release Area Legend Croom !* Proposed Reservoir #_ Proposed Pump Station Proposed Water Main Yellow Rock RoberPtsroonposed Gravity Main Proposed Rising/Pressure Main Zoned Land Dunmore Unzoned Land D A Curramore O Release SKtangiginhgts B Hoiullndary R O Approximate Water Servicing O R E Catchment B M Jamberoo A J Critical Infrastructure investment 1:55,000 Scale at A3 needed to accelerate land holdings Map Produced by Cardno NSW/ACT Pty Ltd (WOL) Date: 2021-06-07 | Project: 48982021-550 km Coordinate System: GDA 1994 MGA Zone 56 0 0.5 1 1.5 2 in the Illawarra Map: 48982021-550-GS-003-Critical Infrastructure Illawarra.mxd 05 r Basemap supplied by Esri WEST DAPTO, NSW Figure 1 - Lots within West Lake Illawarra URA that benefit from the listed projects 5 UDIA BUILDING BLOCKS NSW ILLAWARRA & SHOALHAVEN Nowra-Bomaderry Nowra-Bomaderry is the primary URA in Shoalhaven Region and covers land on the north side of the Shoalhaven River. This URA presently remains underdeveloped. Building Blocks Illawarra Shoalhaven 2021 has identified two critical water and sewer projects along Moss Vale Road that could unlock 3,500 lots within three years. 1. Moss Vale Road North and South SPS The existing sewer network adjacent to the Moss Vale Road precinct is at capacity and is unable to accept additional loads, even as an interim solution. A new pump station and rising main are required to service these lots. 2. Moss Vale Road Reservoir and Potable Water upgrades The existing reservoir does not have the capacity to support the new Moss Vale Road precinct. A new additional reservoir of appropriate size is required to support the URA, as part of a long-term future supply scheme. LOT YIELD PROJECT (UNLOCKED LOT YIELD COST PER INFRASTRUCTURE COST STAGE WITHIN 3 (TOTAL) LOT YEARS) Moss Vale Road North Detailed $26M $7,430 and South SPS Design 3,500 3,500 Moss Vale Road Concept $14M $4,000 Reservoir and Potable Design Water upgrades TOTAL $40M 3,500 3,500 $11,428 avg These key projects are critical because without them development cannot proceed. 6 UDIA BUILDING BLOCKS NSW ILLAWARRA & SHOALHAVEN Nowra-BomaderryRed Rocks Jaspers Brush Beaumont M OSS VA L E ROAD Browns The map belowMountain shows only those lots which are within the direct catchment of the projects listed. Lots not benefited by these projects have not been shown and rely on other critical infrastructure. Cambewarra Additional 3.5ML Reservoir PRINCES HIG !* HWAY Moss Vale Road Reservoir & PW upgrades Approx 3500 lots Meroo Meadow APA23 Connection #_ #_ MVRN SPS Tapitallee SPS08 Bolong #_ #_ MVRS SPS
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