Two Southern Highlands developers have launched court appeals after Wingecarribee Shire Council rejected small-scale housing projects despite statewide reforms designed to accelerate new home construction.
According to the Australian Financial Review, Bundanoon Hotel owner and publican Martyn Downs says his near-$6 million proposal was progressively reduced from 17 townhouses to eight following council feedback, yet still failed to gain approval. Downs claims repeated requests for additional information dragged the process out over years, even though the final development application complied with planning controls and was located close to shops and public transport.
After the council refused the application, citing neighbourhood impacts, tree removal and 11 public objections, Downs began preparing an appeal in the NSW Land and Environment Court. He argues the drawn-out process reflects a broader issue facing compliant housing developments in the region.
The dispute unfolds as the Minns government pushes councils to help deliver 377,000 new homes in NSW by 2029. A performance league table shows Wingecarribee Shire Council averaging 239 days to assess development applications in 2024–25, well above the state benchmark and the slowest in NSW this financial year.
Property law partner Emma Whitney of Mills Oakley says developers increasingly receive notices claiming “insufficient information” despite meeting regulatory requirements. Delays in issuing lodgement invoices, she says, can stall assessments and force applicants into costly court action simply to progress their applications.
Veteran developer Theo Onisforou has faced similar obstacles. His proposal for seven build-to-rent townhouses in Moss Vale, aimed at providing lower-cost rentals, was rejected on public interest grounds. He is also appealing the decision in the Land and Environment Court.
Wingecarribee council spent more than $1.16 million on planning-related court matters last financial year. In response to questions, a council spokesperson referred to publicly available reasons for refusing both developments.
As NSW grapples with housing shortages, the standoff highlights the growing tension between state housing targets and local council decision-making.
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