A public war of words has erupted between Muswellbrook Shire Council and a Sydney-based property developer over a major housing project that has been stuck in the approvals process for more than two years.
Developer Warns Project at 'Brink of Unviability'
Australia Oriental Investment Group, the Australian property arm of Hong Kong's China Oriental Group, launched a stinging attack on the council this week. The company claims its $50 million Denman Park Estate project, promising around 200 affordable and NDIS-compliant homes, has been pushed to the "brink of commercial unviability" by local government red tape.
The residential development on Almond Street in Denman, about 20 minutes from Muswellbrook, was approved but remains stalled. The company's project director, James Zhao, stated that years of delays have made the project an exemplar of systemic problems as the state races to meet housing supply needs. He warned that if this project fails, it sends a "chilling signal" that low-cost housing cannot get off the ground in regional NSW.
The company argues that Denman Park Estate is a watershed project, and without it, about 400 other planned homes and community facilities in the area are unlikely to be delivered.
Mayor Fires Back: 'Developer Margins Aren't Our Concern'
Muswellbrook Mayor Jeff Drayton hit back forcefully on Tuesday, December 31, 2025. He vowed the council would not accept "sub-par consultants' reports" for a project of this scale and complexity.
"Developers' margins are not council's concern," Cr Drayton stated bluntly. He emphasised that council staff were reviewing the proposal "on its merits", and the extended timeframe "reflects the quality of the designs and the scale and complexity of the project."
The mayor stressed the council's primary duty is to ensure developments meet community standards and do not place future financial burdens on ratepayers. He rejected the developer's claim that required contributions—estimated by the company at 25% of the project's total value—were crippling affordability.
Council Defends Process and Infrastructure Funding
A council spokesman accused the developer of misrepresenting the council's position. The spokesman outlined that the council had already taken steps to reduce costs for the developer, including voluntarily part-funding water infrastructure works and reviewing its development contributions plan.
"These contributions fund essential infrastructure including road upgrades, shared pathways, drainage, and community facilities that enable new housing to function safely and sustainably," the spokesman said. He added that without these contributions, ratepayers would be forced to subsidise private development.
The spat occurs as Muswellbrook Shire Council seeks to increase rates paid by local mines to shore up essential services and mitigate the impact of future mine closures. Submissions on that proposal close on January 7, 2026.
The Denman Park Estate subdivision covers approximately 600,000 square metres and was listed as a major development by China Oriental Group in an October company newsletter. The developer has promoted it as a potential driver of sustained capital growth, capitalising on internal migration trends forecast to significantly increase the regional population.
