Council Delays Put Hundreds of Low-Cost Homes and NDIS facilities for the Hunter at Risk
OIA Group
Hundreds of urgently needed low-cost homes in the Hunter region are at risk after prolonged delays and infrastructure demands imposed by Muswellbrook Shire Council pushed a major residential project to the brink of commercial unviability.
OIA Group says its $50 million Denman Park Estate — designed to deliver affordable housing for families, workers and vulnerable residents — has been stalled for more than two years, threatening not only the project itself but a pipeline of adjoining developments that depend on its core infrastructure.
The Denman Park Estate comprises around 200 homes, priced to meet strong demand for lower-cost housing in the Upper Hunter and to provide NDIS-compliant specialist disability accommodation (SDA). The NDIS component will cater to "Fully Accessible" and "Robust" (mental health) NDIS categories.
It is also the enabling project for nearby approved developments, including an aged-care facility and a separate residential subdivision of up to 400 additional dwellings. Without Denman Park proceeding, those homes are unlikely to be delivered.
James Zhao, Project Director at OIA Group Group, said the delays were exacerbating the Hunter’s housing shortage at the worst possible time.
“The New South Wales Premier, Chris Minns' comments and determination to provide long-term solutions to low-cost housing challenges are welcome.
“But words have to translate into action — and this project is an exemplar of what’s going wrong on the ground,” he said.
OIA Group says council is seeking infrastructure contributions of, nearly 25 per cent of the project’s total value, including stormwater and road works that primarily service surrounding developments rather than the Denman Park site itself.
“These costs push genuinely affordable projects into dangerous territory,” Mr Zhao said.
“At some point, low-cost housing stops being viable — and when that happens, nothing gets built.”
The project also includes homes earmarked for NDIS-compliant accommodation, addressing a critical shortage of specialist housing in the Hunter and reinforcing the project’s role in supporting lower-income and vulnerable residents.
“Across the low-cost housing and NDIS sectors, there is an enormous bottleneck at local council level,” Mr Zhao said.
“Chronic underfunding and archaic regulatory policies are crushing councils under the weight of the new development pipeline — which is the only real solution to the housing shortage.”
OIA Group says Denman Park was intended as the first step in a long-term investment program to deliver affordable housing and community infrastructure across the Hunter region.
“This was meant to be a stepping stone,” Mr Zhao said.
“If Denman Park stalls, it sends a chilling signal that low-cost housing simply can’t get off the ground in regional NSW.”
OIA Group is calling on the NSW Government to intervene to ensure planning and infrastructure frameworks support — rather than block — the delivery of affordable housing in the Hunter.
“Without state-level action to modernise outdated policies and properly resource councils, the housing crisis in regional NSW will only worsen,” Mr Zhao said.
About us:
OIA Group is the Australian investment and operating platform of a diversified global group listed on the Hong Kong Stock Exchange. Established in 2016, OIA Group is backed by a strong balance sheet and long-term capital, the Group invests across Australian real estate, industrial assets, resources, and operating businesses, partnering with management teams to drive disciplined growth and operational performance. With deep local capability in Australia and the financial strength of a global listed parent, OIA Group brings patient capital, rigorous governance, and an international perspective to every investment.
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