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Calls for tougher regulations on developer 'promises' in new suburbs

Jazeer Nijamudeen has been waiting a decade for a promised shopping centre. (ABC News: Margaret Paul)

When Jazeer Nijamudeen bought his home in a new development in Melbourne's outer south-west, he said he paid extra to be near a "future town centre".

The town centre was featured on the developer's advertising material, as well as in the state government-approved Precinct Structure Plan (PSP) for Truganina South, from 2011.

The Allura housing estate was pitched as a future suburban hub.

"This area was marketed as a premium area, so we really wanted to be in a place near to the school, near to the shopping centre, walking distance to everything," he said.

Almost 10 years later, the town centre is still on the plan, with a banner advertising it is due to open in 2024.

When it does, it will be smaller than residents expected, with fewer shops and likely a much smaller supermarket.

Housing is currently being built on land which was initially only slated for the town centre. (ABC News: Peter Drought)

About half the land residents thought would make up the town centre is now being built into medium and high-density housing, which residents fear will put more pressure on already-congested roads.

"When we bought in, we were expecting something very, very different from what's being delivered at the moment," Mr Nijamudeen said.

Evy Soneja said she paid 20 per cent more than comparable homes in neighbouring areas, so she could walk to do her weekly supermarket shop.

"I'm really disappointed, it's an understatement," she said.

She tried walking to her nearest supermarket recently. It took her an hour.

The Allura town centre is due to open in 2024. (ABC News: Margaret Paul)

Residents say it points to a broader issue, where home owners in estates have to wait years for infrastructure that appears off the plan to be built, if it ever is.

It is a familiar refrain – from concerns about traffic in Melbourne's outer north, footpaths in the south-east, or traffic in the west – locals say infrastructure in new areas is not keeping up with housing.

There are calls for that to change.

The 'dream' of a town centre

Advertising materials show a bustling urban centre with shops and amenities. (Promotional material)

The local Wyndham City Council approved the original permit for the Allura town centre in 2014 when it was owned by the developer, Stockland.

The Council's Director of Planning and Livability, Peter McKinnon, said in a statement the 2014 permit included some land set aside for "future speculative expansion of the town centre".

"The Urban Design Framework did not envision that the land would be solely commercial," he said.

He said the developer requested a change in 2019 for "additional residential density", which was granted in 2021.

"The Planning Permit authorises the development of the land for a town centre comprised of three mixed-use buildings including retail, dining, medical and recreation and residential (apartment and townhouse) development," he said.

The current developer, Empire Property Group, took over the project in 2021, and declined to comment.

Residents say they feel let down because the town centre will be much smaller than they thought. (ABC News: Margaret Paul)

Resident Craig Ansell has kept all the advertising material from the developers.

"They sell you on a dream," he said.

He said being able to walk to the local shopping centre was one of the reasons he decided to buy at Allura.

"It was one of the lynch pins, and you paid a premium for that, 20 per cent more than you would have to pay in another suburb next door," he said.

He said he was not alone in feeling let down that the town centre will be much smaller than they thought. 

"Buying a house is one of the biggest decisions you'll make in your life, and you buy based on the information you're given," he said.

Calls for state government intervention

Members of the Truganina Residents Action Group met with the Minister for Consumer Affairs, Danny Pearson, to outline their concerns with the way new developments are advertised.

"We want the state government to make sure the laws properly protect consumers," Mr Nijamudeen said.

Jazeer Nijamudeen is hoping to see changes to the way developers can advertise. (ABC News: Margaret Paul)

He said he told the minister locals were upset it can take so long to deliver infrastructure which is outlined in a plan.

"If they cannot put a time frame for when certain things are going to be built, even if it's a time bracket — if they can't do that, they shouldn't be able to promise it," he said.

The Consumer Action Law Centre has similar concerns.

Chief executive Stephanie Tonkin said consumers calling the law centre relied on contracts or marketing images of infrastructure that may never be built.

"Simply, it's not working" she said.

"The system is not working, people are not being provided with enough accurate information, they're not being warned that some of these assets may never materialise."

Stephanie Tonkin says the current system is not working for consumers. (ABC News: Margaret Paul)

She said while consumers should always check due diligence on a major purchase, the state government should mandate clearer up-front warnings that infrastructure often relies on commercial tenants or various levels of government for funding and approval, and in some cases, may not happen.

"It's families putting their entire life savings into buying a home and buying into a community where the school never eventuates, or the shop never eventuates, and they have to drive kilometres down the road to get their shopping," she said.

"So I think it's a big enough problem that governments should step in."

The Property Council of Australia is calling on the state government to require that Precinct Structure Plans be completed within two years of starting.

Its Victorian executive director, Cath Evans, said that would require more state government funding.

"We would really like to see that effort being put in to see the delivery of precinct structure plans in a more accelerated fashion," she said.

Ms Evans said developers would welcome more transparency.

"Any new development areas require multiple agencies to be involved, to look at what the community needs will be beyond a 10-20 year and beyond cycle," she said.

"That involves roads, schools, hospitals, transport, drainage, et cetera, all the things required to make a precinct really successful and sustainable over the long term."

For residents moving to new developments in growth areas, Consumer Affairs Victoria recommends conducting a due diligence check to see plans for the surrounding land, which can be done online.

Consumer Affairs Minister Danny Pearson said he was considering strengthening consumer protections after meeting with residents from Truganina.

"They thought they were going to get a Coles or a Woolworths, they're going to get a smaller supermarket. They thought they were going to get beautiful playgrounds and equipment and that's fallen short," he said.

"So the undertaking I gave to them was I was going to seek some further advice to see what we can do to strengthen those consumer protections."

Premier Daniel Andrews said he was very concerned about the issue.

"Those developers say one thing to guarantee the sale, then say deliver something very different to guarantee profits. That's wrong," he said.

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