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W Byron developer blames market for high prices

West Byron developer Terry Agnew.

West Byron developer Terry Agnew.

Luis Feliu & Hans Lovejoy

West Byron developer Terry Agnew has confirmed with The Echo his intentions to aim much of his development at the wealthy.

It comes after the Sydney property billionaire boasted to a Murdoch-owned newspaper last weekend about his plans to build 500 homes on 600 square metre lots, close to Byron’s CBD. Prices would start from $850,000, he said.

Mr Agnew is no stranger to high-end developments. Just this week the Queensland government refused his Tower Holidays company a ’boutique’ casino licence for its $600 million luxury Great Keppel Island makeover, leading  to reports he had ‘all but given up on plans for the resort’.

The Echo asked Mr Agnew if The Weekend Australian article accurately represented his views, which included naming the development The Harvest Estate.

He replied, ‘Firstly, I would like to differentiate The Harvest Estate from the West Byron project. That is a separate project and I cannot make any comment on what will or will not happen on that site.

‘Market demand at the time will determine pricing. Increasing supply of housing will go some way toward increasing affordability of housing in Byron overall. This is not unique to Harvest or Byron, as I am sure you understand.

‘Our commitment is to nurturing a residential community which showcases state-of-the-art sustainability measures, from the use of solar power, water-sensitive urban design, rainwater tanks, cross-flow ventilation and a range of other initiatives.

‘While our research has shown that there exists some pent-up demand from Sydney and Melbourne buyers, we would like to preference locals first.’

The Echo then asked Mr Agnew how that could legally be achieved, but did not receive a reply.

Currently the NSW planning department and Byron Shire Council are preparing a development control plan (DCP) to provide a framework for the 70-hectare site, located on Ewingsdale Road.

Department defends ‘affordability’

And Mr Agnew’s intentions have put him at complete odds with the NSW planning department; according to the government’s own West Byron Bay Assessment Report, the approval decision was made, in part, owing to a perceived lack of affordable housing.

From page 68 it reads, ‘Housing is clearly unaffordable in the Byron Shire, which also extends to the rental market and key workers cannot afford to live in the LGA.’

Given the lack of a coherent planning narrative, The Echo asked the department, ‘How can locals have faith in the planning department’s ability to provide responsible and strategic planning that will ensure social equity.’

The Echo also asked, ‘Does the department expect that Mr Agnew’s wishes be granted?’ and, ‘How will the department ensure that this proposal doesn’t exacerbate Byron Bay’s already recognised social/wealth divide?’

A department spokesperson replied, ‘The planning controls for the West Byron site, developed by the department and currently being finalised by Byron Shire Council, allow for more affordable townhouses and terrace-style homes.’

‘Increasing the supply of homes in the much sought-after Byron Bay market will help ease the pressure on demand and help put downward pressure on house prices.

‘The department is also overhauling affordable housing policies to make sure they are providing affordable housing where it is needed most. For example, the department recently announced a review of regulations to cut red tape and streamline approval processes for manufactured homes. On top of this, the Affordable Rental Housing policy alone has resulted in more than 7,500 dwellings being approved between January 2010 and June 2014.’

The Australian article, by Lisa Allen, also opined that Mr Agnew and his Brisbane-based billionaire partner, John van Lieshout, were allowed to develop, ‘after a virtual lockout by the Greens dominated local council for many years’.

Mr Agnew also told the The Weekend Australian that he and his partners were hoping to launch the estate later this year or early next year.

DCP will determine

West Byron supporter councillor Di Woods for comment said she hoped ‘this is a false report regarding Mr Agnew’s claim of 500 houses at over $850,000 each’

‘That is not what I envisage the DCP will eventually produce, and at the end of the day, the DCP will be the determining factor. It would be good if the noisy objectors turned their energy into working with the owners for an agreed outcome but I think they may have cooked their goose.

‘For my books, it has always been about a mixture of development which would provide some affordable housing, with the advantage of an increase in rates to help bolster Council’s coffers.

‘I can assure you that I will be advocating for more intense development, with lower house prices, making sure that the total number of houses does not exceed the proposed 850 sites approximately.’

Another councillor who supports the development, Cr Rose Wanchap, told The Echo, ‘It is not yet known what size lots will be offered’.

‘The size will designate the selling price. Ideally I would hope that more smaller lots will be offered, but in reality, lots which are 600m2 or more will be able to have two dwellings built on them.

‘If a 600m2 lot sells for $600,000 then surely two 300m2 duplex lots will sell for half that. If house and land packages are being offered for $800,000 they would have to be larger lots. This would mean two homes could be built and sold for $400,000 each. By my calculations that would make an interest-only loan on the total purchase price of $400,000 at five per cent interest $384 a week.

‘I call this achievable.’


9 responses to “W Byron developer blames market for high prices”

  1. David Michie says:

    “By my calculations that would make an interest-only loan on the total purchase price of $400,000 at five per cent interest $384 a week”.

    Rose must be planning to sell to investors, because owner-occupiers and first home owners generally like to pay off some of the principal.

    Oh, and can Rose please point me in the direction of a builder who can build a home for $100K! If the 300m2 duplex lots cost $300K, how can the total purchase price be $400K?

  2. Rachel says:

    The above discussion is also smoke and mirrors exercise. Affordable or not is irrelevant. The real issue is the multitude of ways this development will destroy byron bay and surrounds and is why it should never go ahead. I suspect Rose is planning to relocate to Auckland, or something, so she won’t have to live amidst the dire consequences
    i dig the new picture selection capture by the way! Infinitely more simple – and somehow ingenious

  3. James Robinson-Gale says:

    By my calculations that would make an interest-only loan on the total purchase price of $400,000 at five per cent interest $384 a week.

    ‘I call this achievable.’

    People who need affordable housing don’t score $400K loans from the bank. Even if they could, they couldn’t afford the repayments. It is staggering that a person elected to represent local people would be so out of touch. Unless there are dramatic conditions in the DCP the affordable housing promises will go up in smoke.

  4. Rossco Phillips says:

    So much for affordable houses for the punters, eh Rose. And Sol, what now? Just another development to make fat cats fatter. And we the residents watch our Shire degraded further by an ever increasing population at the hands of a Council that will not listen to a very vocal community on this subject. We went through this 20 years ago. Check your history. Sol might survive the next election, but it’s “bye bye Rose.”

  5. A Hewson says:

    Mr Agnew wont need to be stuck in traffic chaos like so many others will be, when his West Byron mega – development is built.

    With the new concrete tower being built in the place of the unexplained blaze (see link below), life will be pretty sweet at Wategos.

    http://www.theaustralian.com.au/news/nation/byron-bay-mansions-lost-in-unexplained-blaze/story-e6frg6nf-1225855705114

    Reaping absolutely obscene financial rewards from ‘the Harvest’ at West Byron – which is going to flood the town with thousands more cars and people, and destroy what people like about the place.

    Cnr Wanchap is saying that a finished home on a 300m block will be $400 000. Perhaps she can guarantee this and pay every dollar in excess – for those on low incomes.

    Surely even blind Freddy can see that this development should not happen.

    With forecast sea level rise – why would it even be considered by the government as an acceptable site? Pru Goward signed of on this – where is our planning minister now?

    These basic questions, such as traffic and the environment, should have been answered before the approval of this obscene piece of crap development!

  6. silke dailey-keil says:

    lol … and that does not stand for lot’s of love btw

  7. Val Hodgson says:

    Where does Rose Wanchap ge the idea that a 6oo sq m block can support a duplex development? Currently one needs an 800 sq m block for a duplex. Is NSW Govt changing the rules to plase their developer pals?

  8. Serge Killingbeck says:

    Preferencing locals is a laudable sentiment but definitely a meaningless statement. The average local wage (between Byron, Lismore and Ballina) is between $38,500 and $39,000 a year. An income like that could manage repayments of about $250-300 a week. Even a two income household might manage about $700/week (equates to about a $500,000 loan over 30 years – at current interest rates). What are the chances of picking up a house in West Byron for 500 grand – nil.

  9. m gardner says:

    A False report in the Australian? Harvest Estate? Lockout? 500 houses? W Byron? Differentiate?

    Given all these conflicting remarks are very confusing, I decided to check back with the original article in the Australian itself.

    But This time going back to the source did not help. http://www.theaustralian.com.au/…byron-bay…/story-e6frg6n6-1227330812023

    The photo captioned “Byron Bay” is of Lennox Head. The subheading is “Byron Bay,the idyllic NSW north coast town and playground of the rich and famous”

    I can’t tell who means what?

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