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Newcastle Herald
Newcastle Herald
Business
Jamieson Murphy

How small-to-medium upgrades could open up thousands of new Hunter homes

The smaller projects are the key to more houses. Picture by Marina Neil

Construction could begin on thousands of new homes across the Hunter if the NSW government switched its focus to small-to-medium infrastructure projects, the peak developers body says .

The claim is supported by the Urban Development Institute of Australia (UDIA) new report, which reveals that almost 3000 new homes in Newcastle could be built if the state government spent just $10 million a year over five years on enabling infrastructure, such as road, water and sewage.

Almost 12,000 houses could be built in the Cessnock LGA - which is more than six times its housing target - with a five-year $114-million investment.

Lake Macquarie and Maitland could both build around 6500 dwellings by 2030 with a $116-million and $51-million investment, while $90 million in Port Stephens would unlock almost 1000 houses.

UDIA NSW chief executive Stuart Ayres said it was easy to focus on the really big expensive projects like highways and bridges, but it was the small-to-medium projects that actually helped houses to be built quickly.

"We often underestimated the cumulative effect of lots of smaller projects," Mr Ayres said.

"Most of the land we've identified is ready to be developed, but a local road doesn't exist, or a sewage or water pipeline hasn't been built.

"This approach to enabling infrastructure will give the government maximum bang for buck."

At Fennell Bay in Lake Macquarie, 1000 homes could begin if the state government spent $9-million on a sewage line, relocating high-voltage lines and upgrading the Toronto Road intersection.

An $8-million upgrade to a three-way intersection on Cessnock Road would unlock 2000 homes near Kurri Kurri.

Mr Ayres called on the state government to seriously consider the report.

"We hear politician after politician say we are in a housing crisis, yet the government's actions look like business as usual," he said.

In total, UDIA estimates construction could begin quickly on almost 29,000 homes across the Lower Hunter if the NSW government invested $420 million.

In the Hunter, Mr Ayres said infill developments and apartments to the city and established infrastructure should be welcomed, however the financial climate made their construction challenging and costly.

"That means more greenfield developments are picking up the slack, and there is strong demand in the Hunter for people who want their own block and a backyard," he said.

The report found every local government area in the Lower Hunter had a deficit of enabling infrastructure funding, which was strangling the delivery of new houses.

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