Property is set to devalue significantly in a wide area of East Dubbo as the State Government pushes ahead with a halfway house to resettle prisoners.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Orana Real Estate Institute chairman Rod Crowfoot believes community perception about the controversial facility had already affected house and land prices throughout the Orana Heights, Dulhunty and Keswick Estate residential areas.
And he expects prices to plummet even further once former prisoners were on site at Mitchell House 24 hours a day, seven days a week.
The Department of Corrective Services was understood to have paid $450,000 for the disused low-cost accommodation complex located on the Mitchell Highway, opposite the Orana Mall shopping complex.
Once major improvements were carried out to clear asbestos and meet fire rating and other requirements, the department anticipated housing 25 offenders staying an average of three months each.
When high profile Dubbo-based company Southlands Developments found out about the Corrective Services deal five months ago it immediately cancelled plans to build a multi-million dollar gated retirement community on land next door.
The sign for La Dolce Villa came down and Southlands general manager Mark Stanford now expects the land to become an eyesore, lying vacant for years to come.
“We purchased the site for La Dolce Villa in 2002 and invested a lot of time, money and effort on civil infrastructure and getting development approval for 39 seniors’ units,’’ Mr Stanford said.
“Our company has lost about $1.5 million on the deal and couldn’t give the land away now because no-one wants to live next door to prisoners.
“The mums and dads who live immediately behind Mitchell House should be genuinely concerned about the value of their properties. Real estate is hard enough to sell at any time without having a correctional facility on the back step.
“Buyers are always looking for a reason to discount and if a house is offered for sale in the area for $250,000 sellers might find themselves receiving offers as low as $150,000.
“It doesn’t matter what the facts are, a lot of people will be reluctant to purchase or rent anywhere near a prison facility. The impact will be felt in a wide area extending in all directions from Mitchell House - including the major residential development still to occur in Keswick Estate.’’
Mr Stanford does not expect Dubbo City Council to lodge objections with the State Government but Rod Crowfoot urged local residents to voice their concerns.
“There’s been a lot of discussion about this sensitive issue and community resistance is strong about having a prisoner rehabilitation unit on a highly visible site at the entrance to the city,’’ he said.
“Consensus is that such a facility should not be in close proximity to suburban families and businesses.
“The State Government doesn’t need council approval for the development but there is nothing stopping the community from voicing its opinion.
“Council’s draft environmental plan has long earmarked the land around Mitchell House for residential development and it is disappointing to see the Department of Corrective Services blatantly going against a clearly defined local government master plan.’’