When it comes to property development, there are several options to consider, such as greenfield, infill, and brownfield developments. Each type of development has its advantages and disadvantages. However, in this blog, we will focus on the differences between greenfield and infill development and how they impact Section 94 contributions.
Greenfield Development
Greenfield development involves building on previously undeveloped land, such as farmland or natural vegetation. These developments can range in size from a few residential lots to entire new towns or cities. One of the significant advantages of greenfield development is the ability to plan and design the entire development from scratch. This allows developers and planners to create an integrated and cohesive community complete with the necessary infrastructure, amenities, and green spaces. Greenfield developments tend to be less complicated than infill developments, as there are fewer existing structures and infrastructure to consider.
However, greenfield development also comes with some drawbacks. Building on previously undeveloped land can be expensive since the necessary infrastructure must be built from scratch, plus if some necessities such as schools and public transport are not built adequately on time it can lead to significant traffic and other community issues. Additionally, greenfield developments can have a significant impact on the environment and local ecosystems, as natural habitats and wildlife are often displaced.
Infill Development
Infill development refers to the process of developing vacant or underutilised land within existing urban areas. This type of development can range from single residential lots to larger multi-use developments, such as mixed-use apartment buildings or shopping centres. Infill development has become increasingly popular in recent years, as it allows for the revitalisation of urban areas while minimising the environmental impact. Infill development can also be more cost-effective than greenfield development, as the necessary infrastructure is already in place.
However, infill development can be more complicated than greenfield development, as developers and planners must work around existing infrastructure, zoning regulations, and community expectations. Infill development can also be more disruptive to residents and businesses, as construction can cause road-works and other disruptions to daily life. There are also environmental impacts to consider with infill developments, if established backyard trees and vegetation are demolished to be replaced with housing.
Examples of Greenfield and Infill Development Projects
Greenfield development projects include new housing estates on the outskirts of cities, industrial parks built on previously undeveloped land, and large-scale commercial developments. In contrast, infill development projects include the conversion of disused buildings into residential apartments, the construction of new homes in established urban areas, and the development of brownfield sites.
Social and Economic Impacts
Greenfield development can have both positive and negative social and economic impacts. It can create new employment opportunities, boost local economies, and provide much-needed housing in areas with high demand. However, it can also lead to increased traffic congestion, as it often contributes to car dependency – which can negatively impact residents and may contribute to urban sprawl and the loss of farm and bushland. Infill development can help to address some of these concerns by utilising existing infrastructure around strong transport networks.
What is Brownfield Development?
Brownfield development involves the redevelopment of previously industrial or commercial land that may be contaminated with pollutants, meaning the area may require re-mediation before development occurs. The process offers a sustainable way to revitalise areas that have fallen into disuse, creating new job opportunities, and improving the local economy. Moreover, it can help protect natural habitats and agricultural land, reducing the need for greenfield development. However, brownfield development can be complex and expensive due to the extensive re-mediation required. In recent years, the approach to urban renewal has gained increasing popularity despite these challenges. This is primarily due to the presence of established infrastructure in the area, which offers the potential to develop medium-high density housing in proximity to various amenities.
Section 94 Contributions
One of the main differences between greenfield and infill development is the impact they have on Section 94 contributions. Greenfield development often requires significant investment in new infrastructure and facilities, such as roads, sewerage, and electricity, to support the development. As a result, greenfield projects have a higher Section 94 contributions cap for large scale developments to cover these costs. In contrast, infill development generally takes place in established areas with existing infrastructure, reducing the need for new infrastructure and the associated costs. This has historically resulted in a lower Section 94 contributions cap for infill development projects.
How do Greenfield and Infill Development Impact Section 94 Contributions?
Section 94 contributions are fees imposed by local councils on new developments to fund necessary infrastructure and community amenities. They are crucial considerations for developers and planners, regardless of whether they engage in greenfield or infill development. In greenfield development, developers and planners can design and plan the entire development from scratch, allowing them to factor in necessary infrastructure and amenities and negotiate Section 94 contributions in their construction budgets easily. In contrast, infill development is more constrained by existing infrastructure and community expectations, which can make negotiating Section 94 contributions more challenging. Moreover, existing infrastructure may be inadequate to support the new development, necessitating higher Section 94 contributions to fund necessary upgrades.
Are you looking for a quantity surveyor to sort out your Section 94 contributions?
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