Market Correction
Newcastle developers can now access a $17 million Mine Subsidence Remediation Fund (MSRF) to eliminate site-specific financial risk associated with remediation works – a legacy of the city’s coal mining heritage.
The MSRF reflects the solution to a market failure which was first proposed by the Property Council in 2012 and has been a key advocacy priority since.
The Baird Government has adopted each of our strategic recommendations to finally fix the problem of mine subsidence;
- Strategically asses affected areas.
- Apply a fixed rate per square metre.
- Provide a supportive developer contributions scheme.
- Make Hunter Development Corporation the coordinating authority.
No longer will the feasibility of city building projects be trashed by costs that can run to % of land value or up to $3 million on a typical CBD development site.
Critically, it means investors will not carry the finance burden, often at mezzanine rates, for the duration of the project.