7 Waratah was crown land historically zoned for Community Purposes and used that way for decades – it remained crown land even after the NT Government rezoned it in 2013 despite massive community opposition. This changed in 2014 when it was – converted to freehold title.- privatised so it could be sold to private developers.
How did this happen?
According to the 2024–2025 LDP Outlook Report, the Land Development Corporation (LDC), a Northern Territory Government development body, “purchased 7 Waratah Crescent from the NT Government in 2014 for market valuation,” thereby acquiring freehold title to this land. This was not a genuine contract of sale but an internal NT Government transfer so there’s no public record of any open tender process, no detail on how the “market valuation” was calculated, and no public notification of the intention to transfer . The rezoning of 7 Waratah Crescent to medium density residential in 2013 was a necessary legal step that enabled the Land Development Corporation to convert the land from crown land historically zoned for community purposes into freehold title so it would be able to then offer the land for sale to private developers. Had the land retained its original community purposes zoning, it would have remained legally restricted from such a transfer or privatisation. Under the NT Planning Scheme Land zoned for Community Purposes is intended for public and not private or residential use. Without prior rezoning, any attempt to transfer or develop the site for private residential purposes would likely have triggered public notification, planning approval requirements, or legal challenge — all of which were avoided by rezoning the land in advance. The 2013 rezoning thus removed the planning restrictions and administrative safeguards that would otherwise have constrained or delayed privatisation.
More Statutory Protections for Community Land in Other States
Unlike the Northern Territory, other Australian states have clear laws that protect land set aside for community use. These laws require public consultation, transparency, and proper oversight before governments can rezone or sell such land.
The Northern Territory still lacks these protections. The 7 Waratah Crescent case shows how easily community land can be privatised in the NT—first through rezoning, then through an internal transfer to the Land Development Corporation, converting it to freehold private title “owned” by the LDC, which can then offer it for sale to private developers.
Public funds for private Development
In 2016, the LDC spent 185,000 of public funds on a design concept for 7 Waratah Crescent, with no outcome. The 2024–2025 LDP Outlook Report notes the site was offered to the private sector but the development “struggled to deliver a commercial return.” This money was in addition to the $692,848.70 of public funds used to demolish Sport House in 2015—a still-functioning community sports facility.
The current terrace housing design concept, which does not comply with existing planning regulations and therefore requires rezoning to Special Purpose to proceed, has so far cost $147,000 in public money—covering consultants, designs, marketing, and engagement. This level of public investment in a private residential development project on land historically set aside for the community would be unlikely to occur in other states because statutory safeguards would require public exhibition, social impact assessments, and transparency in funding decisions—preventing governments from internally rezoning and disposing of such land without scrutiny or justification.
As the EIOs received by the LDC in June from private building partners are reportedly “weak,” this suggests industry doubts the commercial viability of the current design—like the 2016 proposal. Weak EIOs indicate low market confidence in the proposed development and reduce the likelihood that it will proceed, even if rezoning is approved.
The rezoning application is still going ahead . A public hearing has now been called . Please join me in calling for reform and stronger statutory protections for community land in the NT