'Public' assets and the master planned estate

Traditionally in Australia, developers have been responsible for providing either serviced residential lots, or house and land packages. Increasingly however developers are now offering housing estates that cater to those interested in particular lifestyle options. Aimed predominately at the second or third home buyer with greater disposable income, a new style of master planned estate which includes additions such as recreational and community facilities or environmental features, promoted to appeal to particular market segments. However with these additional features come new ownership arrangements which may mean compulsory membership to bodies corporate responsible for ongoing maintenance. Of concern in relation to this new approach to residential development is the shift of responsibility for some community assets from public to private hands. This paper explores the implications of this shift through investigation into some recent master planned estates in Victoria. We highlight prominent examples where assets of state or national significance are being transferred to body corporate ownership, and discuss the changing role of local government in relation to these developments. We examine some of the conflicts arising from the role of the body corporate in one particular Melbourne estate and consider issues relating to information available to potential buyers. We consider recent legislation to deal with bodies corporate which are attempts to provide a clearer framework for dispute resolution in such cases. Finally we conclude that greater caution should be exercised by those in a position to approve these arrangements as the array of potential pitfalls and conflicts is considerable.