Deadline looming for UGB legislation. Industry waiting with bated breath for Upper House outcome
The Victorian residential development market is waiting with bated breath to see if the Victorian Urban Growth Boundary (UGB) legislation will be passed the next time State Parliament sits on 27 July, according to MAB Corporation Planning Director Mr Greg Bursill.
He said there was intense speculation by developers that unless the UGB legislation is passed in the Upper House the looming Federal and State elections could stall the legislation until 2011.
The Victorian election is due to be held on 27 November 2010 and the Federal election is expected to be announced shortly.
“If the boundary move is stalled until 2011, the upward pressure on the price of new homes will intensify and major developers like MAB will take another year to bring the new UGB land to the market .
“The effect of this will be that home affordability will be hit hard as the price of land will continue to rise,” Mr Bursill said.
He said MAB and its JV partner Gibson Property Corporation were keenly waiting on the UGB approval to commence infrastructure development at their multi-billion dollar Merrifield satellite city in Mickleham that will provide 10,000 lots.
Mr Bursill said the final date before the State election for the ratification of the UGB legislation is 12 August.
He said the impasse was over the Liberals request to remove two components from the UGB Bill – the E6 Freeway Acquisition Overlay and Clause 12 changes regarding intensification of established areas of Melbourne.
“There is a very real risk that unless the impasse is resolved in the next month the UGB change may be dragged out until after the State Election.
“This could blow out the Growth Area Framework Plans by 18 months and would have the knock on effect of delays to the PSPs for all of the new land,” Mr Bursill said.