Insights Library

Precinct structure plan approved? The property-delivery work that begins after strategic approval

Joel Snyder & Jonathan Hourigan

In Victoria, there is no shortage of announcements about unlocking land, accelerating approvals and fast-tracking housing supply. But for developers and landowners working in major greenfield precinct structure plan (PSP) areas, the pattern is familiar. The headline is usually about strategic approval. The delay comes afterwards. Land may be rezoned, a precinct may be gazetted, and the project may be held out as part of the housing pipeline, yet years can still pass before delivery issues are resolved and homes actually reach the market.

That gap is no longer an exception. It is a recurring feature of the system. Projects commonly become bogged down in the post-approval phase while proponents work through section 173 agreements, authority interfaces, servicing requirements, road creation, drainage easements, subdivision staging, vesting, title constraints, contributions and delivery documentation. In that sense, the real risk is often not whether strategic approval can be obtained, but whether the legal and practical pathway to implementation has been properly built.

The Victorian Government’s 10-year plan for Melbourne’s greenfields reflects an obvious policy ambition to move beyond announcements and towards delivery. But the market has become understandably sceptical of claims that more land in the pipeline necessarily means more homes on the ground. Developers regularly see the same pattern: supposedly straightforward or “shovel-ready” sites continue to stall because the difficult work has simply been pushed downstream into post-approval coordination, documentation and infrastructure sequencing.

That is precisely why early engagement matters. Once a project moves beyond the strategic planning phase, value can be lost quickly if the property, infrastructure and delivery issues are treated as secondary or left to be dealt with later. In many matters, the real legal work begins only after the headline approval has been secured. Early attention to title-side obligations, authority-facing agreements, roads, drainage, staging, vesting and contribution triggers is often what separates a project that is merely approved from one that is actually capable of delivery.

The gap between strategic approval and practical delivery

A PSP is, by design, a strategic planning framework. It establishes the intended land use pattern for a precinct, identifies broad infrastructure assumptions and provides the basis for future urban development. But it does not, by itself, resolve the legal and delivery issues that determine whether a project can move from strategic endorsement to shovel-ready status. 

That next phase is where many projects lose time. The friction is often not in the strategic planning outcome itself, but in the documentation, authority requirements, sequencing and title-side implementation that follows. Delivery can be slowed by section 173 agreements that are too rigid, servicing arrangements that do not align with staging, authority requirements that may be improper, road and drainage outcomes that have not been properly documented, or subdivision structures that do not fit the intended delivery pathway.

These issues are not merely administrative. They are commercial. They affect holding costs, feasibility, financing, construction timing, lot release strategy and ultimate project viability. In that sense, the key question after strategic approval is not simply whether the land has planning support. It is whether the legal pathway from that approval to physical delivery has been properly built.

Why post-PSP work is fundamentally property and delivery work

This is also why post-PSP work is often misunderstood. It is sometimes treated as an extension of the planning process, when in reality much of the critical work sits in property, infrastructure and implementation. Once the strategic planning framework is in place, the legal task becomes translating it into registrable, enforceable and commercially workable outcomes.

That translation exercise usually involves a number of connected workstreams. Title-side obligations need to be tested against staging. Authority requirements need to be mapped against subdivision and servicing strategy. Road, reserve and drainage outcomes need to be documented in a form that supports delivery and future dealings. Shared infrastructure arrangements need to be allocated properly between affected landowners or delivered through appropriate agreements with public authorities. Charges and contributions need to be considered early enough to identify trigger events, deferment options and timing risk.

For proponents, this is often the point at which value is either preserved or lost.

Section 173 agreements and title-side controls can shape the whole project

One of the most common title-side issues to emerge after strategic approval is an agreement prepared under section 173 of the Planning and Environment Act 1987 (Vic). Broadly, a section 173 agreement is a statutory agreement connected to land that can bind future owners and occupiers and continue to affect how land is used, developed and transferred over time. Because it often remains operative well beyond the initial approval stage, it can become complex, administratively burdensome and difficult to vary or unwind, particularly after subdivision.

That is why section 173 agreements should rarely be approached as routine permit housekeeping. If drafted poorly, they can constrain future staging, transfers, title outcomes, infrastructure timing and compliance pathways long after the headline approval has been secured. If drafted well, they can support delivery by recording obligations clearly, allocating responsibility sensibly and preserving flexibility where it is genuinely needed across later stages.

We often hear that a Council requests signing of its “standard” section 173 agreement which then evades proper legal and strategic review. While this may assist in a project satisfying its recommencement requirements early, it may have significant impact and delay during implementation. This is why we always stress engaging Best Hooper for a review at the earliest possibility which will include elements of strategic and commercial advice based on experience in negotiating hundreds of similar agreements. 

The same point applies more broadly to title-side controls. Reserve treatment, vesting, easements, access corridors, drainage corridors and authority interfaces all have the potential to shape the project in ways that are not always obvious at the strategic approval stage. A project may look resolved at the planning level but still encounter substantial delay if those property-side issues are not worked through early and coherently.

Roads, drainage easements and delivery documentation are often where delay crystallises

One of the clearest differentiators in post-approval work is the need to translate broad infrastructure assumptions into precise legal outcomes. On many projects, the path from strategic approval to delivery requires careful structuring of new roads, road widening, reserve interfaces, drainage easements, drainage reserves, access corridors, land vesting and land transfer outcomes.

It is often also overlooked that an authority requirement may in fact be improper or unlawful; just because that it the “standard” process does not make it correct. 

These are not incidental issues. They often determine whether engineering design, staging, servicing and title registration can proceed in an orderly way. If a road outcome is not properly reflected in the subdivision structure, if a drainage corridor is not supported by appropriate easement treatment, or if vesting assumptions are not aligned with authority expectations, delay can emerge quickly and expensively.

This is also why the most useful legal work at this stage is often highly practical. It involves asking whether the proposed road can be created in the manner assumed, whether the drainage easement language supports the intended asset outcome, whether access has been preserved for construction and servicing, whether the vesting pathway is clear, and whether the relevant documents support the project’s sequencing in the real world.

Construction access, cost sharing and authority works agreements often become critical

Large-scale delivery also frequently depends on agreements that sit beside the formal subdivision pathway. Depending on the project, these may include construction access agreements, deeds of access, cost sharing agreements between adjoining or benefitted landowners, and works or delivery agreements with councils, water authorities and other servicing or public authorities.

Those agreements are often central to enabling works to proceed at all. They can govern access, temporary occupation, sequencing, reimbursement, risk allocation, shared infrastructure delivery, ownership, usage rights and the interaction between private development obligations and public authority requirements. In practice, they are often the documents that allow physical delivery to catch up with strategic approval.

It is critical to obtain proper legal and strategic advice prior to the execution and implementation of such construction and access agreements. While, again, we appreciate a form of document without proper review may assist in commencement, it often will create a risk during delivery or compliance stages. 

Contributions and charges need early trigger-event strategy

For many greenfield projects, delivery risk also sits in the wider matrix of statutory contributions and value-based charges that are easy to underestimate if they are not addressed early. Depending on the project location, planning controls and delivery pathway, that matrix may include Growth Areas Infrastructure Contribution (GAIC), Windfall Gains Tax (WGT), the Melbourne Strategic Assessment (MSA) levy, Infrastructure Contributions Plan (ICP) and Development Contribution Plan (DCP) levies and public open space contributions. 

Strategy on these items is critical at the front end, not only to identify the relevant trigger events, but also to understand when liability may crystallise, how different contribution regimes interact with each other, how they affect staging and transactions, and whether there is any available scope for deferment, staged payment or alternative payment timing. The answer will differ depending on the regime. These are not matters to leave until the end of the project. They can materially affect acquisition strategy, transaction structuring, subdivision sequencing, feasibility and exit timing. 

Post-strategic approval delivery work is often where project value is protected

For developers and landowners, this work is often the difference between an approval that exists in principle and a project that can progress. Careful structuring of section 173 agreements, roads, drainage easements, authority works agreements, access arrangements and contribution timing can avoid months of downstream inefficiency. Early attention to title outcomes, vesting, delivery dependencies and trigger events can preserve flexibility and reduce the risk of the project becoming constrained by documents or assumptions that do not match how it will be delivered.

That is why this phase should not be treated as administrative follow-through. It is core project work. It goes directly to timing, cost and feasibility.

How Best Hooper assists with post-PSP delivery matters

Best Hooper is well placed to assist this point in the development lifecycle. Our work in post-precinct structure plan matters is focused on helping developers, landowners and project participants move from strategic approval to practical delivery.

That includes preparing and settling section 173 agreements and related title-side instruments, advising on subdivision strategy and title implementation, assisting with road and reserve creation, drainage easements, access arrangements, vesting and authority-facing property outcomes, and structuring the legal workstreams that sit behind coordinated project delivery.

It also includes the preparation, review and negotiation of delivery agreements that often become critical once the project moves beyond strategic approval, including construction access agreements, deeds of access, cost sharing agreements and works agreements with councils, water authorities and other servicing or public authorities.

Best Hooper also advises on the broader matrix of contributions and charges that can materially affect timing and feasibility, including GAIC, the MSA levy, WGT and, depending on the project, ICPs, DCPs and public open space contributions. The key issue is not simply identifying that a contribution or charge exists. It is developing tailed contribution and charges strategies which identify the relevant trigger events, understand when liability may arise, assess whether payment can be deferred or staged, and structure transactions, subdivision sequencing, delivery milestones and title outcomes accordingly. 

Importantly, that work is approached through a delivery lens. The objective is not simply to describe the approval framework. It is to understand how the relevant documents and obligations will operate in the real world, how they interact with the broader project structure, and whether they support or undermine efficient execution.

Why Best Hooper?

For developers and landowners, the real legal work often begins after strategic approval. Best Hooper advises on the property, infrastructure and delivery issues that determine whether a project can move efficiently from framework approval to subdivision, title issue and physical delivery, including title-side agreements, roads, drainage easements, authority documentation, shared delivery arrangements, and early strategy on contributions and charges.

Joel Snyder

Partner
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Jonathan Hourigan

Partner
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