Securing Cairns Housing Foundations

• Australian and Queensland governments have announced a combined $220 million in grants, alongside an $80 million Federal concessional loan, to deliver housing-enabling infrastructure in Mount Peter.
• The Mount Peter PDA will streamline planning and accelerate infrastructure and housing delivery.
• Critical water, wastewater and transport upgrades will unlock thousands of new homes while reducing pressure on ratepayers.

Cairns, like many Australian communities, is facing a growing affordable housing crisis, impacting its growth, liveability, and economic prosperity. The issue is driven by population growth, limited housing supply, rising construction costs, and labour shortages.

With a rental vacancy rate of just 0.7%, Cairns is experiencing severe housing shortages. To tackle this, all levels of government, the development industry, and other stakeholders must collaborate.

Council is playing an active role by ensuring an adequate supply of approved land for development and offering incentives like infrastructure charge waivers and fast-tracked assessments for community housing providers and private developers. While addressing current housing needs is urgent, the focus must also extend to medium- and long-term planning. By working together on planning and infrastructure, Cairns can ensure sustainable housing solutions for the future.

Our vision

The Mount Peter Southern Growth Corridor, spanning approximately 3,300 hectares south of Cairns between Edmonton and Gordonvale, is the last remaining greenfield development area in the region. Around half of the land is suitable for development, capable of accommodating approximately 18,500 new homes for an estimated 42,500 people.

This area will play a crucial role in Cairns' future growth, as it is projected to account for 37% of the city’s population growth between 2021 and 2046.To ensure sustainable development, Council is seeking the declaration of a Priority Development Area (PDA) to accelerate housing supply.

This approach will facilitate strategic planning for land use and infrastructure in collaboration with the Queensland Government, landowners, and industry stakeholders. The plan includes diverse housing options to meet the community's evolving needs, as well as retail, commercial, and industrial zones for job creation.

All of government investment

Funding for essential infrastructure remains a challenge. Queensland councils have long faced a funding gap between the cost of essential infrastructure and the revenue generated through developer contributions, which typically cover only 39% of costs.  The remaining 61% must be funded through increased rates, which is a significant burden on local residents, especially given the rising cost of living. To address this, external funding is critical for delivering affordable housing and infrastructure.

Council welcomes the recent announcement by the Australian and Queensland governments of a joint $220 million grant funding package ($110 million each), alongside an $80 million Australian Government concessional loan, to support housing-enabling infrastructure including water, sewerage and road upgrades within the Mount Peter Southern Growth Corridor.

Independent analysis has identified the significant infrastructure required to support the next stages of development in the Mount Peter Southern Growth Corridor. A staged approach is being progressed to prioritise delivery-ready infrastructure that can unlock housing in the near term while laying the foundation for long-term growth.

Initial investment in priority water, wastewater and transport infrastructure has the capacity to enable up to 2,400 new homes, including approximately 870 homes that can be delivered by addressing current wastewater constraints. These works represent a critical first step in unlocking housing supply within the corridor, which has the ultimate capacity to deliver around 18,500 new homes.

This investment represents a significant partnership between local, State and Federal governments to deliver the enabling infrastructure required to support housing supply, sustainable growth and long-term liveability for the Cairns community, while reducing the financial burden on local ratepayers.

For more information on the Mount Peter Priority Development Area (PDA), visit Economic Development Queensland's Mount Peter Priority Development Area.

Securing Cairns Housing Foundations brochure

Ministerial media release: Mount Peter priority development area declared to give more Queenslanders a place to call home

Key stakeholders support Council’s plans to unlock Southern Growth Corridor