BUILDING BLOCKS A PRACTICAL APPROACH TO INFRASTRUCTURE AND LAND SUPPLY - Illawarra and Shoalhaven Edition August 2021
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BUILDING BLOCKS A PRACTICAL APPROACH TO INFRASTRUCTURE AND LAND SUPPLY Illawarra and Shoalhaven Edition August 2021
UDIA BUILDING BLOCKS
NSW ILLAWARRA & SHOALHAVEN
Message from the CEO
Steve Mann
UDIA NSW CEO
The Illawarra Shoalhaven is at a crisis point as we face a rapidly decreasing supply
of serviced land for development. The critical shortage of greenfield housing
extends throughout the region and is having a major impact on deteriorating
housing affordibility.
House sales have seen up to a 50% lift beyond market expectations and we
are well ahead of projected lot releases. This is the result of a combination of
factors including record low interest rates, regional migration, government
home purchase incentives and COVID-19 induced demand for space.
Our 2018 UDIA NSW Building Blocks report proposed several enabling
infrastructure projects for the Illawarra Shoalhaven to support greenfield
housing in the key urban release areas. Over the past three years, not much
has changed.
In-migration is increasing, as people look for regional housing solutions
out of Sydney. Whilst there have been lots released in West Lake Illawarra
and apartment development in the Wollongong CBD and Kiama township,
the pace of development is not keeping up with demand and house prices
continue to climb.
Over the past 12 months, we have seen house prices rise by more than 20%
in Shoalhaven and 12% in Wollongong. Kiama now has an average house
price of $1million.
In June 2021, the Minister for Planning and Public Spaces released the
Illawarra Shoalhaven Regional Plan 2041 and in August 2021, Transport for
NSW (TfNSW) finalised the Illawarra Shoalhaven Regional Transport Plan.
UDIA NSW supports these plans and our new Building Blocks Illawarra
Shoalhaven 2021 report, prepared in collaboration with Cardno, identifies
the critical enabling infrastructure needed to further support up to 500,000
people that will live in the region by 2041.
To help achieve this, we request Government commits $136.6 million for
six recommended water and sewer projects that will unblock 11,600 lots by
2024 in the West Lake Illawarra and Nowra-Bomaderry Urban Release Areas
(URA).
Illawarra and Shoalhaven With no funding allocated in the NSW Budget 2021-22 for critical enabling
Partner water and sewer infrastructure to support growth in the Illawarra Shoalhaven,
we are concerned that the region will continue to suffer from rising house
prices, home rental increases, housing stress and homelessness. The
development industry will also suffer due to a dwindling greenfield pipeline
and a direct threat to construction jobs.
The NSW Government needs to take urgent action to ramp up the delivery
of enabling infrastructure to avoid dire consequences for jobs, housing
affordability and the wider economy in the region. The recent announcement
by the Minister for Planning and Public Spaces to establish a Regional Housing
Taskforce to identify solutions to improve housing supply in regional NSW
is a positive step and this Building Blocks report will be a key advocacy tool
for the region.
2
UDIA BUILDING BLOCKS
NSW ILLAWARRA & SHOALHAVEN
Above: Coast, Manyana by Fountaindale Group
Cover Image: Coast, Manyana by Fountaindale Group
3
UDIA BUILDING BLOCKS
NSW ILLAWARRA & SHOALHAVEN
West Lake Illawarra
West Lake Illawarra is the primary Urban Release Area (URA) in the Illawarra Shoalhaven region and is proposed
for 20,000 dwellings, or 60% of the total 30,000 new houses to be provided in the region by 2041. There are still
large areas of unzoned land at West Lake Illawarra, including Calderwood, Cleveland, and Avondale.
We have focused on the enabling infrastructure required to support zoned areas at Yallah Marshall Mount, North
Macquarie and Tullimbar, which can result in greenfield housing being released in a three-year time frame.
Building Blocks Illawarra Shoalhaven 2021 recommends four key critical infrastructure projects for the West Lake
Illawarra URA, unlocking 8,100 lots within three years, and more in the medium term.
These key projects are critical because without them development cannot proceed. The projects are:
1. Kembla Grange and Yallah Marshall Mount Sewage Pumping Station and associated Trunk
Gravity Mains
Capacity constraints require a major investment to ensure future development at Huntley, Cleveland and
Avondale can proceed. There is also no capacity available to service proposed development at West Dapto
Stage 3 and Yallah Marshall Mount.
2. Avondale Reservoir and Trunk Main
Without a new reservoir, supply and pressure issues will continue to restrict development.
3. Calderwood Sewage Pumping Station, Rising Main and Trunk Main
Future development on the northern side of Calderwood Road, including Town Centre East and the
proposed school sites, are reliant on the future Calderwood sewage pumping station (SPS). The pump
station was originally to be commissioned by end of 2021 but this has now pushed out to 2026 based on
the latest Sydney Water Growth Servicing Plan.
4. Mt Terry Water Lead-In
The Mt Terry Water Lead-In is required to service elevated pockets of lots within Calderwood especially
those lots above Raised Level (RL) 60m.
LOT YIELD
PROJECT (UNLOCKED LOT YIELD COST PER
INFRASTRUCTURE COST
STAGE WITHIN 3 (TOTAL) LOT
YEARS)
Kembla Grange and Strategic $56M 5,000 14,500 $3,860
Yallah Marshall Mount Planning
SPS and associated
Trunk Gravity Mains
Avondale Reservoir Option $20M 5,100 7,700 $2,600
and Trunk Main Planning
Calderwood SPS, Strategic $18M 1,900 4,500 $4,000
Rising Main and Trunk Planning
Main
Mt Terry Water Lead-In Concept $2.6M 1,200 1,200 $2,170
Planning
TOTAL $96.6M 8,100* 19,000* $5,080 avg
* Some of the projects above have overlapping catchments for the lots benefitted. The total lot calculation seeks
to ensure that lots are not double counted.
4UDIA BUILDING BLOCKS
NSW ILLAWARRA & SHOALHAVEN
West Lake Illawarra
The map below shows only those lots which are within the direct catchment of the projects listed. Lots not
benefited by these projects have not been shown.
Mount
Cordeaux Kembla Cordeaux
Kembla Heights
Heights
Farmborough
Dombarton Heights
Unanderra
Kembla Grange
Wongawilli
#
_
Brownsville Berkeley
Avon AY
RW
TO
MO
ES
NC
Horsley
I
PR
West Dapto 1 and 2 Kanahooka
Urban Release Area
AY
Kembla Grange and
HW
YMM SPS Project
HIG
Approx. 14,500 Lots
ES
Huntley Kembla Grange
SPS Catchment I NC
PR
West Dapto 3 Dapto
Urban Release Area Cleveland
Koonawarra
West Dapto 4
Urban Release Area
Avondale Reservoir
Project Avondale
Approx. 7,700 Lots
!
*
#
_ Yallah
Yallah Marshall
Mount SPS
Catchment
Marshall
Mount Haywards Bay
West Dapto 5
Urban Release Area
#
_
Calderwood SPS
Project
Approx. 4,500 Lots
Calderwood Avondale
Calderwood
SPS Catchment Reservoir
Catchment Oak Flats
Macquarie
Pass North
Macquarie RA ROAD
TONGAR Blackbutt
Albion
I L LAW
Park
AR Rail
RA
HI G
HW
AY Calderwood Albion Park
Urban Release Area
Tullimbar
Tongarra Mt Terry Lead in
TER
Project
RY S
Approx. 1,200 Lots
R EET
Tullimbar
Legend Urban Release Area
T
Croom
!
* Proposed Reservoir
#
_ Proposed Pump Station
Proposed Water Main Yellow Rock
Robertson
Proposed Gravity Main
Proposed Rising/Pressure Main
Zoned Land
Dunmore
Unzoned Land
O AD
Curramore
Release Staging
KnightsBoundary
Hill
OR
Approximate Water Servicing
O
ER
Catchment
MB
Jamberoo
JA
r
Critical Infrastructure investment
1:55,000 Scale at A3 needed to accelerate land holdings Map Produced by Cardno NSW/ACT Pty Ltd (WOL)
in the Illawarra
Date: 2021-06-07 | Project: 48982021-550
km Coordinate System: GDA 1994 MGA Zone 56
0 0.5 1 1.5 2 Map: 48982021-550-GS-003-Critical Infrastructure Illawarra.mxd 05
WEST DAPTO, NSW Basemap supplied by Esri
Figure 1 - Lots within West Lake Illawarra URA that benefit from the listed projects
5UDIA BUILDING BLOCKS
NSW ILLAWARRA & SHOALHAVEN
Nowra-Bomaderry
Nowra-Bomaderry is the primary URA in Shoalhaven Region and covers land on the north side of the Shoalhaven
River.
This URA presently remains underdeveloped. Building Blocks Illawarra Shoalhaven 2021 has identified two critical
water and sewer projects along Moss Vale Road that could unlock 3,500 lots within three years.
1. Moss Vale Road North and South SPS
The existing sewer network adjacent to the Moss Vale Road precinct is at capacity and is unable to accept
additional loads, even as an interim solution. A new pump station and rising main are required to service
these lots.
2. Moss Vale Road Reservoir and Potable Water upgrades
The existing reservoir does not have the capacity to support the new Moss Vale Road precinct. A new
additional reservoir of appropriate size is required to support the URA, as part of a long-term future
supply scheme.
LOT YIELD
PROJECT (UNLOCKED LOT YIELD COST PER
INFRASTRUCTURE COST
STAGE WITHIN 3 (TOTAL) LOT
YEARS)
Moss Vale Road North Detailed $26M $7,430
and South SPS Design
3,500 3,500
Moss Vale Road Concept $14M $4,000
Reservoir and Potable Design
Water upgrades
TOTAL $40M 3,500 3,500 $11,428 avg
These key projects are critical because without them development cannot proceed.
6UDIA BUILDING BLOCKS
NSW ILLAWARRA & SHOALHAVEN
Nowra-Bomaderry
Red Rocks
Jaspers Brush
Beaumont
M O SS V
AL ROA
E
D
The map below
Browns
Mountain
shows only those lots which are within the direct catchment of the projects listed. Lots not
benefited by these projects have not been shown and rely on other critical infrastructure.
Cambewarra
Additional
3.5ML
Reservoir PRINCES HIGHWAY
!
*
Moss Vale Road
Reservoir & PW upgrades
Approx 3500 lots
Meroo Meadow
APA23 Connection
#
_
#
_
MVRN SPS
Tapitallee
SPS08
#
_ #
_ Bolong
MVRS SPS
Moss Vale Road
Bangalee
North Nowra Diversion North & South SPS
Approx. 3,500 lots
Bomaderry
North Nowra D
OA
LONG R
BO
Longreach
Terara
Legend
!
* Proposed Reservoir
#
_ Proposed Sewer Pump Station West Nowra Nowra
TREET
Proposed Water Main Mundamia
Proposed Gravity Sewer
EAS T S
Proposed Pressure Main
Eastern Gas Pipeline (Jemena)
Zoned Land
r
Critical Infrastructure investment
1:30,000 Scale at A3
m
needed to accelerate land holdings Map Produced by Cardno NSW/ACT Pty Ltd (WOL)
Date: 2021-06-07 | Project: 48982021-550
0 250 500 750 1,000 in the Shoalhaven Coordinate System: GDA 1994 MGA Zone 56
Map: 48982021-550-GS-004-Critical Infrastructure Shoal .mxd 03
NOWRA, NSW Basemap supplied by Esri
Figure 2 - Lots within Nowra Bomaderry URA that benefit from the listed projects
7UDIA BUILDING BLOCKS
NSW ILLAWARRA & SHOALHAVEN
Building Blocks Catalytic Infrastructure
Methodology
UDIA and Cardno have identified catalyst infrastructure on land that is ‘ready to go’. We pinpointed areas where
the last missing piece of infrastructure cannot be delivered by the development industry alone.
Our focus was on infrastructure, including roads, electricity, sewer, and water that can be delivered within 3 years.
UDIA NSW and Cardno have developed a framework that addresses the current market conditions and unlocks
the most supply:
• Greenfield land released and/or zoned for residential development in the key urban release areas of the
Illawarra Shoalhaven that can supply dwellings to market within 3 years.
• Infrastructure projects that can be delivered within a 3-year time frame.
• Infrastructure projects unlikely or unable to be delivered by developers.
BUILDING BLOCKS METHODOLOGY
Identify stakeholders, growth Review technical inputs and Infrastructure analysis
and dwelling yields infrastructure projects
• DPIE Development Scenarios • Technical Reports • Identify Project Status
• Development Pipeline (UDP) • SIC and LUIIP Infrastructure (Funded/Unfunded, Delivered
• VPAs, Master Plans, ILPs etc Schedules etc)
• Land Ownership • Identify Infrastructure Trigger
• Review DPIE Housing Supply Points
Forecasts • Define Infrastructure
“Catchments”
• Identify Funding Source and
Delivery Time frames
Evaluation & recommendation Development industry ground
of projects truthing
• Review & identify • Review Housing Supply
infrastructure projects that Forecast Data with developer
can release development intent
within 3 years • Identify infrastructure
• Identify High-Level Costs delivery & funding issues on
• Calculate $ per dwelling key sites
• Finalise recommended
projects
8UDIA BUILDING BLOCKS
NSW ILLAWARRA & SHOALHAVEN
So What’s Changed since
Building Blocks 2018
In the three years since Building Blocks Illawarra Shoalhaven 2018 was released, we have seen record dwelling
completions in greenfield markets in 2018-19, followed by a significant slowdown in 2019-20. The response to
COVID-19 towards greenfield housing, regional migration and the roll-out of HomeBuilder in mid-late 2020, has
caused a major rebound to occur. We now have a fast-depleting supply of zoned and serviced greenfield land
resulting in a housing supply and emerging affordability crisis.
In 2018, UDIA NSW identified 15 water, sewer, road, and electrical utility projects to support growth in the key
URAs in the Illawarra Shoalhaven region. Since this time, there has not been a significant roll-out of enabling
infrastructure to sustain greenfield supply.
Only a handful of these projects have progressed to design, including: Moss Vale Road and intersections, sewer
pumping stations at Nowra-Bomadery, Northcliffe Drive extension. Some are due to commence construction
within 12 months at Nowra-Bomaderry and 24 months at Mundamia. However, most projects previously identified
have been deferred or delayed, especially at West Lake Illawarra.
This report has focused on those projects that are critical to housing release in these Urban Release Areas.
However, we support funding for those secondary projects identified in Appendix A to ensure integrated planning
and infrastructure outcomes.
The lack of a greenfield pipeline continues to present a major problem and now is the time to respond with firm
infrastructure measures to offset an impending housing affordability crisis.
Conclusion
There is a land availability crisis in the Illawarra Shoalhaven region. This crisis can be averted through the funding
of critical enabling infrastructure. Building Blocks Illawarra Shoalhaven 2021 identifies practical and realistic
infrastructure solutions to help sustain greenfield housing supply in the region at the key urban release areas of
West Lake Illawarra and Nowra-Bomaderry.
We recommend that the NSW Government provides direct funding ($136.6 million) for six water and sewer
projects identified in the key urban release areas to unlock 13,600 greenfield lots within a three-year time frame.
We hope that the NSW Government commits to the projects we have recommended to sustain the greenfield
supply, achieve housing affordability, and support the ongoing economic recovery in NSW.
9UDIA BUILDING BLOCKS UDIA BUILDING BLOCKS
NSW ILLAWARRA & SHOALHAVEN NSW H U N T E R R E G I O N
APPENDIX A – ILLAWARRA AND
SHOALHAVEN REGION CATALYST
ENABLING INFRASTRUCTURE
In the Building Blocks 2018 report, a number of projects were identified as being critical enabling infrastructure to
support development in the Region. The following table identifies those projects previously identified by the report
and updates their current status.
Urban Release Area /
Infrastructure Current Status
Precinct
West Lake Illawarra
Hayes Lane extension Road The Hayes Lane extension is now a part of the Western Ring
Road project which has not progressed other than the Hayes
Lane Bridge which is currently in concept design phase. The
current contributions plan indicates delivery timing of 2021-
2051.
Yallah Road / Marshall Road This project is currently only in investigation phase. The current
Mount Road contributions plan indicates delivery timing of 2031-2056.
SPS at Kembla Grange Sewer Some concept planning has occurred, but the project has been
deferred by Sydney Water. This project is identified in the 2021
Building Blocks critical infrastructure project list.
SPS and Rising Main Sewer Project has been delayed and is identified in the current Sydney
(Calderwood) Water Growth Servicing Plan for delivery beyond 2025. This
project is identified in the 2021 Building Blocks critical
infrastructure project list.
SPS and Rising Sewer Projects have been delayed and is identified in the current
Main and Lead-in (Yallah / Sydney Water Growth Servicing Plan for delivery beyond 2025.
Marshall Mount Road) This project is identified in the 2021 Building Blocks critical
infrastructure project list.
Cleveland - Kembla Grange Sewer The project is identified in the current Sydney Water Growth
rising main SPS connection Servicing Plan for delivery beyond 2025. This project is identified
in the 2021 Building Blocks critical infrastructure project list.
Northcliffe Drive extension Road Some design work has commenced, but the current
contributions plan indicates delivery timing of 2031-2036.
10UDIA BUILDING BLOCKS
NSW ILLAWARRA & SHOALHAVEN
Urban Release Area /
Infrastructure Current Status
Precinct
Nowra Bomaderry
Moss Vale Road Upgrade Road
Shoalhaven City Council (SCC) and Transport for NSW are
currently working on the draft concept designs to assist with the
Housing Acceleration Fund (HAF) funded roundabout project.
Two Moss Vale Road Road First roundabout into both the North and South of the precinct
Intersections has HAF funding. Design is complete and construction is
expected to commence in July 2021. There is no funding
commitment to a 2nd roundabout (Main Road/Moss Vale
Road) based on SCC designs. Bells Lane/Moss Vale Road/Far
North Collector Road intersection is in detailed
design with Federal Government funding.
Electrical Lead In Electrical Endeavour Energy has advised that there is capacity for early
stages of development, which is subject to further assessment.
Electrical Zone Substation Electrical Endeavour Energy is presently investigating a suitable
site and discussions have commenced with property owners to
service the Moss Vale Road precincts (North and South) in the
longer term.
2 x Sewer Pumping Stations Sewer Both SPS’s are in detailed design and construction to commence
at the start of 2022.
Mundamia URA
Update Yalwal Road Road SCC has secured funding from the NSW Government’s Low-Cost
Loan Initiative (LCLI) to upgrade three intersections on Yalwal
Road (at George Evans Road, Rannoch Drive, Lightwood Drive).
Delivery deadline is June 2023.
Intersection Yalwal Road and Road The SCC Contributions Plan includes all works, as well as design
Albatross Road and construction.
Extension of George Evans Road SCC has secured LCLI funding to deliver, which could also occur
Road from Roundabout at via a planning agreement with first developer. Delivery deadline
University is June 2023.
SPS and Rising Main Sewer Design work partially complete and SCC will commence
construction at the initial stages of the URA’s development.
11UDIA NSW
Level 5, 56 Clarence St,
Sydney NSW 2000
P: 02 9262 1214
E: udia@udiansw.com.au
W: www.udiansw.com.au
Cardno
16 Burelli St, Wollongong, NSW 2500
P: (02) 4231 9600 | W: www.cardno.comYou can also read
