Palmwoods Coles appears set for green light after long battle

Many residents are in favour of the proposed supermarket. Others say it will split the town, commercially, to the detriment of existing small businesses.

The long-running battle over a proposed Coles supermarket in Palmwoods appears to be nearing its conclusion. The Gazette understands the Planning and Environment Court is poised to approve the controversial development.

The project, led by NeuBau Group, centres on a full-line supermarket and associated retail on Palmwoods–Montville Road. The proposal has been the subject of debate since it was lodged in 2023.

Sunshine Coast Council rejected the development last year, citing concerns about its location outside the town’s designated centre, its scale, and the risk it would fragment the existing village heart.  

At the time Div 5 Cr Winston Johnston acknowledged that there was community support for a supermarket in Palmwoods but emphasised that the town plan was in place to protect the character of small towns. “A town plan is a document which tells us or tells the community that you can have certain uses in certain areas,” he said at the time. He warned that approving the supermarket would cause a breakup of the business centre of Palmwoods and could lead to further issues in the future.

Cr Joe Natoli also supported the rejection, at the time, arguing that large supermarkets often drew trade away from existing shopping precincts and could destroy the uniqueness of small towns. “What are we doing to protect the character of these railroad towns?” he asked.

Cr Natoli stressed the importance of foot traffic for local businesses and expressed concern that the proposed supermarket would not bring competition to Palmwoods but rather create a dominant player.

Planning officers had also warned the project conflicted with the planning scheme and could undermine the established activity centre, raising concerns about character, amenity and walkability. 

The refusal set the stage for a legal fight, with the developer lodging an appeal in the Planning and Environment Court soon after. 

An earlier approval for a supermarket on a different site in town was withdrawn by the proponent, significantly altering the case before the court, and weakening council’s case. That developer applied to council to withdraw all previous approvals. “As a result Council’s case fell apart,” a source said. 

Supporters argue Palmwoods, a growing hinterland town of more than 6000 people, has long lacked a full-service supermarket, forcing for a full grocery shop. 

The development would be the first full-line supermarket in the town and could dramatically effect the existing smaller Spar Supermarket, not to mention other small retail businesses in town.