The real costs of DA delays in property development

Behind the Blueprint series

For seasoned developers, the direct financial implications of Development Application (DA) delays — increased holding costs, financing charges, and opportunity costs among others — are well understood. 

But the broader ramifications of these delays extend beyond individual projects. They influence market dynamics, housing affordability, and the overall health of the property development sector.

At a time when the housing crisis is splashed across front pages almost daily, and politicians are trading blows over affordability, availability, and cost-of-living pressure, DA delays aren’t just a developer’s frustration — they’re part of a much larger national conversation. 

Projects stuck in planning limbo mean fewer homes being built, fewer options for buyers, and more pressure on an already strained system. 

And while developers are now unfortunately used to navigating complexity, the cumulative effect of these delays is rippling far beyond balance sheets and timelines.

Beyond the balance sheet

The financial impact of DA delays is immediate — but the knock-on effects often carry more weight over time. These delays are decreasing supply, driving up prices, straining infrastructure, and shaking investor confidence. 

1. Escalating housing shortages

DA delays contribute significantly to the bottleneck in housing supply. According to the Australian Bureau of Statistics, dwelling approvals fell by 5.7% in April 2025, with a notable 19% decrease in approvals for apartments and medium-to-high density housing (ABS). This shortfall exacerbates the existing housing crisis, making it increasingly challenging to meet the National Housing Accord's target of delivering 1.2 million homes by mid-2029.

2. Inflationary pressure on property prices

Delays in the planning and approval process can lead to increased development costs, which are often passed on to buyers. Research by the Urban Development Institute of Australia (UDIA) indicates that delays in planning approvals directly increase holding costs, pushing up total project costs and, consequently, house prices (UDIA NSW). This inflationary pressure further diminishes housing affordability, particularly for first-time buyers.

3. Strain on infrastructure and services

Prolonged DA processes can delay the delivery of essential infrastructure and community services tied to new developments. This lag can strain existing facilities and services, leading to overcrowded schools, congested transport systems, and overburdened healthcare services in growing communities.

4. Erosion of investor confidence

Consistent delays and regulatory uncertainties can deter both domestic and international investors. The collapse of significant projects, such as the Akin development in South Brisbane, underscores the risks associated with prolonged approval processes and the potential for financial instability within the sector. 

Strategies for mitigating the challenges

To address and mitigate the multifaceted impacts of DA delays, a collaborative approach involving developers, government bodies, and industry stakeholders is essential:

• Streamlining approval processes: Implementing standardised and transparent approval timelines can reduce uncertainty and expedite project commencement.
  
  
• Leveraging technology: Adopting digital tools potentially supported by advancements in AI for application submissions and tracking can enhance efficiency and accountability within planning departments.
  
  
• Engaging in early consultation: Proactive engagement with planning authorities and community stakeholders during the early stages of project development can identify potential issues and facilitate smoother approval processes.
  
  
• Policy reforms: Advocating for policy reforms that balance development needs with community interests can create a more conducive environment for timely project approvals.
  
  

While the direct costs of DA delays are quantifiable, the broader implications on housing supply, affordability, infrastructure, and investor confidence are profound and far-reaching. 

Addressing these challenges requires a concerted effort to streamline approval processes, embrace technological advancements, and foster collaborative relationships between developers and regulatory bodies. 

By doing so, the property development sector can contribute to alleviating the housing crisis and promoting sustainable urban growth.

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