The Property Council of Australia has given a muted welcome to the NSW Government's second State Budget, with significant funding set to lay solid foundations for growth in the Illawarra Shoalhaven.
Property Council of Australia's Illawarra Regional Director Michelle Guido said funding commitments across housing, transport and health would boost economic activity, but cautioned against new tax and cost hikes on the property sector.
"We've got significant and welcome funding pouring in to key projects right across the Illawarra Shoalhaven region that will provide stimulus and support growth.
"It is great to see funding being announced for housing infrastructure in West Dapto to support the delivery of housing, as well as funding for the redevelopment of a 32-hectare site in Warrawong and the BlueScope Surplus Land Masterplan.
"We also welcome the Budget funding to continue the delivery of the new Shellharbour Hospital, as well as funding to deliver accommodation for health workers in regional areas and a Key Worker Build to Rent Program to be delivered in metropolitan areas.
"We have long argued the importance of transport infrastructure to delivering positive housing outcomes, so it is also good to see a continued commitment of funding towards major road projects across the region.
"This includes funding for major construction of the Mount Ousley Interchange and the Nowra Bypass, Picton Road Upgrade, Jervis Bay Road Intersection Upgrades, Jervis Bay to Sussex Inlet Upgrade and the Milton-Ulladulla Bypass," Ms Guido said.
Ms Guido said the Budget news wasn't all good, with the NSW property sector facing a massive $6.38 billion cost hike in the middle of a housing and construction crisis.
"The $4.7 billion cost shift of the Emergency Services Levy (ESL) from insurers to property owners, combined with a $1.68 billion stealth tax hike on land tax and foreign surcharges will cripple the sector's potential to deliver urgently needed housing.
"It's a massive cost for property owners and developers facing a once-in-a-generation housing supply and affordability crisis, a critical shortage of industrial land and low vacancy rates, and an already challenging development cost environment.
"While the government's record investment in social housing must be applauded, these additional costs add to the pressures facing the property and construction industry. Now is not the time to increase property costs or cut off access to vital investment in housing," Ms Guido said.
KEY BUDGET FUNDING FOR ILLAWARRA SHOALHAVEN
Housing and Planning:
- A share of $85 million of Housing Infrastructure Funding for West Dapto as part of a total $201.9 million state and local council investment.
- $47.9 million has been allocated in 2024-25 for Sydney Water Corporation to do work on West Dapto water infrastructure. Project has an estimated total cost of $107 million and is due to be complete in 2027.
- $5 million for the BlueScope Surplus Land Masterplan, preparing for the creation of a jobs centre for the state in the Illawarra.
- $2 million to masterplan the 32-hectare site at King Street Warrawong for more public parklands, recreation, culture, arts, heritage, tourism and entertainment facilities.
- $5 million for Landcom to deliver an additional 10 Build to Rent dwellings in Bomaderry.
- $17.7 million for a condition assessment of Venues NSW assets including and Wollongong – with 11.6 million allocated in 2024-25.
- $253.7 million to bolster the State's planning system and $200.0 million for the Faster Assessments Program to incentivise councils.
- $200.1 million to deliver accommodation for health workers in regional NSW.
- $450 million for a Key Worker Build to Rent Program to be delivered by Landcom across metropolitan areas of the state.
Transport:
- $293.8 million for major construction at Mount Ousley interchange.
- $10.0 million Illawarra Rail Resilience Plan for South Coast Line.
- $105.0 million for Nowra Bypass and Network Planning.
- $18.9 million to investigate extension of Memorial Drive for bypass of Bulli town centre.
- $9.0 million for planning and additional entry and exit ramps to connect motorists in Dapto to the M1 Princes Motorway.
- $1.1 billion for Jervis Bay Road Intersection Upgrade, Jervis Bay to Sussex Inlet Upgrade and Milton-Ulladulla Bypass.
- $89.3 million for Picton Upgrade to improve safety and connectivity.
Health
- $781.9 million for New Shellharbour Hospital and Integrated Services.
- Additional funding of $196.5 million to deliver ongoing redevelopments in regional hospitals including Shellharbour Hospital.
- $21.3 million to support Waminda's Gudjaga Gunyahlami Birth Centre and Community Hub in South Nowra.
Environment:
- $80.4 million for creating multi-day walking trails including the Great Southern Walk and Illawarra Mountain Biking Network.
