Recent interest rate rises have meant higher mortgages for home owners. But for people building their home there may be some relief with new resolutions adopted by Council to drop housing costs by up to $5,000. 

Council resolved to amend traffic head works charges on local and state controlled roads and reintroduce reduced water and waste charges under the CairnsPlan.

"The traffic, water and waste water charges are levied by Council when a development commences. For example, when a residential lot is created, or a new business established," said Council media coordinator, Sonja Anderson.
 
In terms of the dollar impact for households, I believe the most major impact to be at time of purchase of a new property - the effect will likely be a reduction in the cost of buying a new block, or establishing a new business.  said Council's media coordinator, Sonja Anderson. 

"These costs make the cost of land less on the market. They do not reduce Council's rates to individual residents, which are charged after a house has been built."

The resolutions mean the cost of an average housing block is set to fall by between $2,000 and $5,000.

Mayor Val Schier said in practical terms this means a reduction in infrastructure charges payable on the development of residential and industrial land.

“The infrastructure costs affected by this decision represent a large component of the costs in land development,” Cr Schier said.

“Council has held extensive consultation with industry and the state government to come up with a plan that encourages development and at the same time delivers land to buyers at a lower cost.

“All in all, this move is aimed at increasing land sales, directly stimulating the local economy and creating jobs.”

The reduction in charges to developers could reduce infrastructure charges payable for development for one hectare up to $26,000 for residential land and $80,000 for commercially zoned land. 

Cairns Branch President of the Urban Development Institute of Australia (UDIA), Adam Gowlett said the local chapter of the Institute has been working closely with Council over the past year since the amended charges were introduced.

“This outcome is a terrific result for the entire community,” Mr Gowlett said.

“In the past Council was put in a difficult position by charges introduced by the State.  This decision clearly recognises the value of creating a strong building and development sector.

“The positive side is that the industry is very competitive and new home owners should get great value.”