
Challenges
Because building a townhouse development presents unique challenges, it’s essential to acknowledge them upfront. However, these obstacles are not insurmountable. In fact, they often serve as opportunities for innovation and strategic planning. As we’ll explore in more detail, the potential rewards of such a venture far outweigh the risks.Stringent Local Planning Requirements
The Brisbane City Council is known for its stringent local planning schemes, such as the Brisbane City Plan 2014, which impose highly specific rules on various aspects of residential developments. These can range from how far the building must be set back from the edge of the property to the heights of buildings, site coverage, and more. This is particularly complex in established suburbs, and developers need to understand the planning schemes well to avoid issues with permits and sidestep any legal issues.
Environmental Factors
The Brisbane area has a history of flooding, particularly near the Brisbane River, which adds a degree of complexity for developers who are building anywhere near the water. As such, Brisbane developers need to ensure that they conduct thorough flood risk assessments and design their townhouses in such a way as to comply with the city’s stringent flood mitigation requirements. This might contribute to increased costs and more complex approval processes.
Resistance to Urban Densification
Although Brisbane, like many major cities around Australia, is facing a housing crisis, those who already live here value the city’s suburban feel and frequently oppose large townhouse developments, as they are perceived as contributing to the over-densification of the urban environment.
Developers frequently face organised opposition from local community groups and need to navigate these with sensitivity and care, engaging with the community to gain project approval and minimise potential delays.
Inadequate Infrastructure in Outer Suburbs
If you are developing large townhouse complexes in some of the outer suburbs, such as Logan or More ton Bay, you might have to invest in building additional infrastructure, such as upgrading roads or facilitating public transport access, to ensure that your development is connected to the city around it.
High Land Prices
Land is expensive in Brisbane, particularly in highly sought-after areas such as Paddington, West End, or New Farm. It’s important to carefully evaluate the financial viability of such parcels of land, as competition is fierce, and you might have a hard time ensuring a good return on your investment due to high upfront costs.
Navigating Government Approvals
Depending on the size of your development, you might require approval from not only the local council but also from state government agencies, such as the Department of State Development, Infrastructure, Local Government, and Planning. The process surrounding this dual-layered approval mechanism can be complex and time-consuming, so developers need to factor this into their planning. This is especially true when large-scale developments are proposed near state-controlled roads or environmentally sensitive areas.Sustainability Mandates
Speaking of environmental impact, Brisbane is very much in favour of sustainable development practices, particularly when it comes to new residential developments. As such, developers are under significant market and regulatory pressure to build homes that incorporate energy efficiency, water-sensitive designs, and other sustainability features. The aim is to enhance the city’s sustainability through projects that are beneficial in the long term. However, in the short term, this can increase your initial investment costs and complicate the design.Material and Labour Shortages
There is a surge in construction activity ahead of the 2032 Olympics, which has put some strain on the availability of skilled labour and materials for new developments. If you don’t have the right contacts and builders working with you, you might struggle to get your project delivered within the timeframe you originally envisioned, resulting in delays and cost increases as you compete for limited resources and labour.
Opportunities
With the downsides out of the way, we can now focus on the positives. Let’s take a look at the many reasons why overcoming the challenges presented above is worth the effort.High Demand For Housing
The rapid expansion of Brisbane’s population, particularly in areas like the Gold Coast, Ipswich and the Sunshine Coast, means that there is a prime market for new housing developments. There are significant opportunities to meet the demand for medium-density housing, such as townhouses, which can provide suitable domiciles for families and professionals who want to live in the city at a more affordable price.Urban Renewal Incentives
The Brisbane City Council and the Queensland Government are actively promoting urban renewal projects, which gives developers access to various incentives. These incentives come in the form of infrastructure grants, tax benefits, and fast-tracked approvals. The aim is to support the creation of large developments to revitalise areas such as Fortitude Valley, South Brisbane and Woolloongabba, while simultaneously meeting the growing demand for housing in the city.The Olympics Are Coming
With the 2032 Olympic Games ahead, Brisbane is driving up its infrastructure investment, particularly in public transport, public amenities and sports venues. Therefore, developers building new residential complexes in strategic areas will be able to take advantage of the upgraded infrastructure, providing their residents with access to new train lines, sports venues and more. This will drive up property values and boost the demand for housing.
The Appeal of Sustainable Living
Lots of people want to live in Brisbane because of the area’s pleasant subtropical climate. In subtropical climates, there are many opportunities for adopting sustainable living practices, whether it’s installing solar power, harvesting rainwater, or implementing energy-efficient designs.
Moreover, subtropical climates require less heating and cooling, which drives energy costs down. Developers who can incorporate sustainable living features into their townhouse complexes can take advantage of the growing market of environmentally conscious buyers and renters who will pay a premium for them.
Proximity To Major Employment Hubs
Brisbane is a major employment hub, so living close to work is a huge attraction factor for many potential residents. This drives up the demand for housing and provides an opportunity for developers to attract professionals looking for convenient and low-maintenance living options. Building townhouses in well-connected suburbs, such as Chermside or Kangaroo Point, can cater to this market, offering a lifestyle balance that is close to work and minimises the need for commuting.
Brisbane Lifestyle Appeal
The outdoor lifestyle, abundance of parks, riverside walks and other cultural amenities make Brisbane a highly attractive place to live. Capitalising on this can give developers a distinct advantage. Designing townhouse complexes that emphasise the benefits of Brisbane’s lifestyle and outdoor living can help appeal to buyers. Including features like private gardens, communal green spaces and easy access to recreational facilities can go a long way towards leveraging this advantage.
Strategic Partnerships With Brisbane City Council
The Brisbane City Council is open to developing proactive partnerships with large developers whose projects are aligned with the city’s strategic planning goals. If you can achieve this, your collaboration with the Brisbane City Council will facilitate a smoother approval process and give you access to some of the incentives and benefits that are available. This could include infrastructure funding or even potentially favourable adjustments to planning regulations to accommodate certain special requests.
Conclusion
Here at Groove Properties, we offer full-scale townhouse building services to residential land developers who will settle for nothing but the best. Contact us today to find out more about how we can bring your new Brisbane development to life.