A federal government plan to restrict building near airports may threaten $8.8 billion of new property developments in Western Australia, a developer lobby group says.
Urban Taskforce Australia said that up to 35,200 new dwellings may never be built if the government goes ahead with proposed guidelines to limit residential developments across Perth in areas affected by aircraft noise.
Nationally, the rules jeopardise 134,300 new dwellings valued at $33.5 billion.
The group's chief executive, Chris Johnson, said the government's push to change planning rules near airports was selectively applied to suit the operators of airports and would lead to planning chaos.
In Sydney, the changes could stop 34,100 dwellings valued at $8.5 billion across an area of 63 square kilometres, the report found.
The report also said that for established properties in affected areas, values could fall about five per cent.
The government says changes in planning rules are needed to improve community amenity by minimising aircraft noise-sensitive developments near airports.
Comments on the draft plan close on Thursday, March 15.
Urban Taskforce Australia was established in 1999 to represent the interests of Australian property developers and equity financiers.