The City of Cockburn is considering substantial increases to infrastructure contributions that could significantly raise costs for developers building in the area. Proposed changes to the city's local development plans would see fees for new projects potentially double or even triple in some cases.
Substantial Fee Increases Proposed
Under the new proposal, the infrastructure contribution for multi-unit developments would jump from the current rate of $2,000 per dwelling to a staggering $6,000 per dwelling. This represents a 200% increase that developers would need to absorb when constructing new residential projects within the City of Cockburn.
For single residential lots, the increase is equally dramatic. The contribution would rise from $2,500 per lot to $5,000 per lot, effectively doubling the cost burden on developers creating new housing in the area.
Rationale Behind the Proposed Changes
City officials argue these increases are necessary to keep pace with the growing demands on local infrastructure. The additional funds would be directed toward essential services and facilities required by new residents moving into developing areas.
The proposed changes come as the council reviews its Local Planning Scheme 3 and Local Development Plans, with the fee adjustments being considered as part of this broader policy update. Council documents indicate that the current rates have not kept up with actual infrastructure costs.
Potential Impact on Housing Affordability
Industry representatives have expressed concern that these substantial cost increases will inevitably be passed on to homebuyers and renters. The Urban Development Institute of Australia has warned that such fee hikes could further strain housing affordability in the region.
Developers operating in the Cockburn area now face difficult decisions about project viability and pricing. Some smaller developers may reconsider projects altogether if the increased costs make them financially unworkable.
The City of Cockburn council is expected to make a final decision on the proposed fee increases in the coming months, following further consultation with stakeholders and community members.
