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Property development in Australia is getting harder—and this episode unpacks why. Soaring costs, endless planning delays, contradictory government policies, and a risk-averse planning culture are pushing developers to the edge. If you’re struggling to make your numbers work, you’re not alone.
In this episode of the Property Developer Podcast, we explore what’s broken in the system and what needs to change. Our guest, Maxwell Shifman from Intrapac Property, shares blunt insights from the front lines of residential property development including:
- Why planning systems are paralysed by zero-risk thinking
- How rising construction and infrastructure costs are crushing feasibility
- The myth of affordable apartments near train stations
- Why government housing targets are set up to fail
- How rezoning taxes and red tape are stalling supply
- The real reason developers are shelving projects across Australia
- Strategies for surviving and adapting in today’s tough market
“We tax housing like we want less of it—then wonder why no one’s building.”
Property Development Training
Want to learn how to manage property development with confidence?
If you’re ready to take control of your development journey, check out my Property Developer Training. This step-by-step course covers everything from finding a site to running feasibilities and successfully completing a small-scale development. You’ll learn how to avoid the pitfalls I’ve faced and set yourself up for success.
New Course: Building Blueprint – Navigating Construction During Turbulent Times
To help you successfully navigate the construction phase of any project, I’ve added a brand new, standalone course included with the Property Developer Training called Building Blueprint: Tactics for Navigating Construction During Turbulent Times. This course dives deep into construction contracts, common building pitfalls, and how to mitigate risks during the construction phase.
So head over to propertydevelopertraining.com and take a look… I would love to see you on the inside…
Property Developer Quiz
Ready to find out if you’re ready to become a developer?
Take the free Property Developer Quiz and see where you stand. Whether you’re just starting or already working on projects, this quiz will help you assess your readiness and point out any gaps in your development knowledge.
Take the free Property Developer Quiz (https://www.propertydevelopertraining.com/quiz) and get a sense of where you are at…
Free book – Discover the secrets of a Million Dollar Property Developer
Grab Your Free Book: “Become a Million Dollar Property Developer”
Want to know how I delivered a 20-townhouse project on my first development? Grab a free copy of my book, Become a Million Dollar Property Developer, where I share the lessons I learned—and how you can apply them to your own projects.
Grab a free copy of my popular book Become a Million Dollar Property Developer about my journey into property development at https://www.propertydevelopertraining.com/digital_book.
Social Connection
Youtube – catch up on all the episodes and my property project updates – https://www.youtube.com/@propertydeveloperpodcast196
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LinkedIn – connect with me on LinkedIn – https://www.linkedin.com/company/property-developer-podcast
Links
Intrapac Property – https://intrapac.com.au/
Episode Transcript
Justin:
Let’s start with your background. How did you get into property development?
Maxwell:
So I’ve been in the property industry now for about 17 years. My father was a small developer in Melbourne’s Bayside area, so I was exposed to development early on. I did engineering and law at university, worked in construction law and then forensic safety engineering before joining Intrapac.
Justin:
And you’ve now been at Intrapac for over 15 years?
Maxwell:
Yeah, that’s right. Intrapac is a family business founded by David Payes. When I joined, we were mostly active in Victoria. We’ve since expanded across four states and now focus on masterplanned communities and medium-density housing.
Justin:
Tell us about the Darwin project—sounds like it’s been quite a journey.
Maxwell:
Yes, we acquired a 4200-lot site near Darwin about ten years ago. The planning process was incredibly slow—lots of rezoning challenges, infrastructure issues, and water reticulation delays. Even though the NT government’s regional growth plan identifies it as a key area, it’s been a tough road.
Justin:
That’s frustrating. Is that a unique case or reflective of broader issues?
Maxwell:
It’s broader. Across Australia, we see governments with ambitious housing targets, but planning and infrastructure bottlenecks make delivery near-impossible. We often get policy announcements without a pathway to execution.
Justin:
So is property development dead in Victoria?
Maxwell:
It’s not dead—but it’s on life support. Planning delays, the windfall gains tax, infrastructure contributions, and council red tape are strangling supply. Developers are stepping back from feasible projects.
Justin:
What about the government’s focus on apartments near stations?
Maxwell:
That’s a fantasy. Family-sized apartments are incredibly expensive to build and buy. It’s not what the market wants and not where affordability lies. Medium-density infill—like townhouses—is where we should focus.
Justin:
The Suburban Rail Loop is a big government initiative. Your thoughts?
Maxwell:
It’s a $50 billion black hole. The idea of value capture through rezoning is flawed. Much of the land around stations is already residential, so the tax won’t apply. Plus, the cost per dwelling created is astronomical—over $500k. It’s not viable.
Justin:
Why do you think developers are so demonised?
Maxwell:
There’s a huge perception issue. Developers are blamed for housing unaffordability, but we deliver 97% of housing. We’re over-regulated, over-taxed, and vilified in the media and by councils. Yet without us, there’s no new housing.
Justin:
What about the construction industry? Is that a major bottleneck too?
Maxwell:
Absolutely. We’ve seen a shift—labour shortages have overtaken materials as the biggest constraint. Government infrastructure projects are absorbing resources, and developers are being priced out. Apartment construction is down 30% on feasibility alone.
Justin:
Are councils part of the problem?
Maxwell:
Yes. Local councils have too much power to block projects. Often based on subjective criteria like “neighbourhood character.” There’s no accountability. We need deemed-to-comply pathways and reduced council intervention.
Justin:
Tell us about Kinley. What’s happening there?
Maxwell:
Kinley is a large infill project in Lilydale on an old quarry site. We got early-stage housing underway, but multiple agencies created delays on infrastructure approvals. We’ve lost three years and incurred huge holding costs. It’s emblematic of a broken system.
Justin:
For people trying to enter development, what’s your advice?
Maxwell:
Start small and nimble—dual occupancies, simple subdivisions. Avoid complex rezonings unless you have deep capital and long horizons. And partner wisely—get great consultants and understand your risks.
Justin:
What’s your outlook moving forward?
Maxwell:
We need reform. Planning must be streamlined, councils should be sidelined on major projects, and infrastructure contributions must be predictable. If not, supply will dwindle, prices will rise, and affordability will worsen.
Justin:
Well said. Where can people connect with you?
Maxwell:
LinkedIn is probably the best place.
Justin:
Thanks again for joining us, Maxwell.
Maxwell:
My pleasure, Justin. Thanks for having me.
