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Pre-sold developments already under construction are facing fresh assessments by Melbourne Water after sweeping changes to flood mapping pushed the properties into flood zones.
In Brunswick, diggers are busy at work excavating underground carparks from the dark brown clay for a new $40 million townhouse development, but the homes, many of which have been pre-sold, are now subject to an overlay to minimise flood impacts.
Planning experts warn the changes to flood mapping are long overdue but a slow rollout and a lack of co-ordination between planning and building approval systems are creating uncertainty for home buyers around Melbourne.
Among the developments potentially affected by the flood mapping changes are 24 luxury townhouses under construction at 144-146 Union Street in Brunswick, a suburb where development has continued to surge after severe floods along Sydney Road in 2017.
The Neometro development received planning approval from Merri-bek council in June last year, and was previously issued a building permit by a private building surveyor.
But in January, the site became subject to a special building overlay requiring a planning permit to ensure new buildings are designed to minimise flood impacts.
Planning permit applications under the overlay include a statutory referral to Melbourne Water, the floodplain management authority.
Melbourne Water has since assessed the development and given advice on minimum flood protection and floor-level requirements.
“Flood mapping does not create risk; it identifies the risk that already exists,” Chris Brace, executive general manager for service futures at Melbourne Water said.
It is unclear what the full effect will be on the development, but according to Melbourne Water, Merri-bek council has advised that permit amendments and further statutory processes are required.
“Mapping flood-prone land through the special building overlay gives property owners and developers clear information about flood risks and the requirements that must be addressed during the planning process,” a council spokesman said.
Advertisements for the townhouses, priced from $1.6 million to more than $2.2 million each, showcase architecturally designed three-bedroom homes clad in brown brick.
Neometro director James Tutton declined to say whether any alterations would be made to the development as a result of the flood-mapping changes or whether buyers had been informed.
Tutton said rigorous multi-stage approvals, such as statutory referrals to various authorities, were standard procedure in property development, with local government planning schemes continually updated.
“As is always the case, our expert design team proactively made all relevant applications and technical amendments to meet regulatory obligations,” he said. “This covers the full gamut of issues including flood risk.”
One potential buyer, who asked to remain anonymous, put down a deposit on one of the townhouses before the application of the overlay, prior to deciding not to proceed with a purchase for reasons unrelated to the flood mapping.
“We had a serious look at four of the units,” he said. “We eventually withdrew, but we never had anything mentioned about flood risk or flood mapping.”
Planning experts warn that what is happening in Brunswick is playing out around Melbourne.
“The reality is that there are many parts of Melbourne and Victoria that are and will be subject to flooding,” said Jane Keddie, vice president of the Victorian chapter of the Planning Institute of Australia.
Keddie said many of the areas had not been previously identified because the flood models were not up to date and the planning overlays were not in place.
“Because of the delay and the outdatedness of a lot of the current modellings, there will certainly be a difficult transition period where we do have development that’s been approved in what are essentially floodplains,” she said.
Keddie said changes brought in by the state government meant that when a residential development under seven storeys came before a council, the council could not consider flood risk as part of its decision-making process when overlays were not in place.
Melbourne Water can consider flood risk, but it is only involved at the building approval stage.
“At the moment, we have a significant disconnect between the planning approval stage and the building approval stage,” she said.
Keddie said this situation was likely to continue to occur as flood mapping was brought up to date, but would hopefully become less frequent.
A Department of Transport and Planning spokesman said development could still occur in flood-prone areas, subject to meeting appropriate design, construction and flood protection measures.
The number of developments in Melbourne affected by the updated flood mapping is unknown: Merri-bek, the City of Yarra and the City of Melbourne were all unable to provide any figures for their municipalities.
“Until the final maps are incorporated in the planning scheme, council is limited to making landowners and permit applicants aware of the proposed mapping and to contact Melbourne Water for advice,” a spokeswoman for the City of Yarra said.
Just down the road from the Neometro development, neighbour Rob Veitch said he had not had any issues with flooding but was surprised to find sitting water when he had to dig a hole for a retaining wall in his backyard.
A recent letter from the council informed him that the flood mapping for his home had changed.
“My understanding is just if it rains, there is nowhere for the rain to go,” he said.
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