April 10, 2010

Developers on a winner in Ipswich as they leave the Gold Coast in droves because of high Council charges

QT

INCREASING development costs for builders has forced a business once based on the Gold Coast to move its operations to Ipswich.

The Reklaw Property Group – headed by Ipswich Jets coaching luminaries and former NRL Stars Ben and Shane Walker – moved their business to Ipswich last year.

Director Ben Walker said when weighing up the increasing development costs of the Gold Coast compared to developer-friendly Ipswich City Council, the decision to move west was easy.

He said fees were up to two to three times more expensive on the Gold Coast.

"Even when we were based at Burleigh, Ipswich was a region we always had our eye on," Mr Walker said.

"The region is really growing and it's a great place for us to build the entry-level homes we want to create.

"You will start seeing more developers moving here. I think many on the Gold Coast keep threatening to leave to make council rethink its fee system, but we just decided, long term, Ipswich was going to be a better prospect for our business."

Ipswich City Council's Planning and Development Committee chairman Paul Tully said the council had received plenty of feedback from developers who said the Gold Coast was too expensive.

"A builder recently told me he was quoted $1.2 million in head-works fees for a project he had on the Gold Coast, when the fees for the same development in Ipswich were about $200,000," Cr Tully said.

"Our head-works fees are significantly less, and the Gold -Coast is almost pricing itself out of the market.

"We've heard reports of other builders moving to the Ipswich region because it is cheaper and can be faster for approvals."

The Walker brother's development on North Station Road in North Booval – two free-standing townhouses – is currently nearing completion.

Shane Walker said their Reklaw Property Group has more developments in the works, with plans to develop more residential lots on North Station Road and on Thorn Street towards the University of Queensland campus.