Wednesday 26 September 2007

New housing estate enigma !

The planned new housing estate at West Dapto will be huge. It will further enhance the population of the Illawarra - and will constitute a city in it's own right eventually.
The big problem being tossed around between the state government, Wollongong council and the developers concerns the development levies that will be charged against each building block - and that creates a conflict of interests.
The council wants the levies to be capable of paying for the services the new estate will require. If they are pitched too low then the council will inevitably have to makeup the shortfall.
The government wants to create housing land that is affordable to first home buyers.
The developers need land prices that will create an affordable mix of land and building to attract buyers and sell their product.
What is needed is an objective look at the needs of a newly developed housing estate.
It will be impossible to duplicate the amenities already existing in well established suburbs in the early years. Past experience with other such developments is a good guide. The law of supply and demand applies. If the demand is there for a product - and that includes shopping facilities, bus transport and entertainment - private enterprise will respond if it can be provided at a profit.
That usually means that what is provided falls far short of of what the customers would desire.
For instance, private bus companies will run buses on routes that are profitable, but forget about services late at night or at times when just one or two patrons are passengers.
The same applies when it comes to shopping facilities. If there is demand, service will be forthcoming.
The levies that apply to West Dapto need to be angled at providing affordable homes for the average person. A fair impost on each block will be needed to make sure government services such as schools, fire services and medical facilities are promptly installed - but beyond that there is no point in creating utopia if it is out of reach of the consumer.
Hopefully, a practical compromise will err on the side of reality !

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