The huge cost of providing water and sewerage infrastructure in new housing releases in Macarthur and Wollondilly could scuttle plans for tens of thousands of new homes.
And while developers would be asked to pay the infrastructure levy the cost would ultimately be paid by the families buying a home in such greenfield estates.
Sydney Water is reported to be pushing for such levies, which were recommended in a NSW Productivity review into infrastructure contributions three years ago.
Such a scheme would cost $40,782 per lot if implemented across the Greater Macarthur region.
But it could go as high as $91,926 for the proposed Appin and Gilead land releases, and $53,023 for Picton if these areas were released separately.
Wollondilly Mayor Matt Gould says the Sydney Water push has put a huge spotlight on the massive infrastructure costs of new greenfield housing on the outer fringes of Greater Sydney.
It could mean plans for greenfield land releases in Appin for housing could turn out to be a pipe dream.
“The reality is that providing infrastructure in new greenfield developments costs money, and ultimately someone has to bear the burden,’’ says Mayor Gould.
“This is not even taking into consideration the billions of dollars in other state infrastructure that is needed for transport, schools, hospitals and other essential services for these new communities.
“We really have to question whether this project is too expensive and whether we should focus that money on areas that are already zoned and housing in metropolitan areas that already have basic services available.
“The NSW Premier is on the right track with his approach to the housing supply issues facing our state, with a plan to build affordable, social and universal housing on surplus public land close to existing public transport hubs where possible.
This would unlock housing supply in those areas where billions have already been spent.
“When it comes to Appin, developers can’t afford it, the State government can’t afford it, and councils definitely can’t afford it – so we have to question why it is this area is a priority for growth for NSW,’’ he said.
Pictured above is the Appin township.
