Approval to build a Coles supermarket in Palmwoods has been granted, after the initial proposal was rejected by the local council.
The NeuBau Group appealed to the Planning and Environment Court in October 2024 after Sunshine Coast Council decided in August 2024 to refuse its plans for the 10-hectare site at 22 Palmwoods-Montville Road.
But court documents dated April 2 say the two parties had agreed to approve a changed development application, subject to 87 conditions.
The development will include a full-line Coles supermarket with a gross floor area of about 3869sqm, plus a bottle shop.
The conditions include a maximum building height of 8.5m and the provision of at least 187 car parking spaces.
A new four-way roundabout will be constructed between Palmwoods-Montville Road, Margaret Street, Churchill Street and a new road going into the development.
Palmwoods-Montville Road must also be upgraded along the site frontage, including kerb and channel works, underground drainage, pedestrian footpaths and installation of street lighting.
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Further conditions were also imposed by the State Assessment Referral Agency (SARA) because the development is within 25m of the state-controlled Palmwoods-Montville Road.
SARA’s conditions stipulate that upgrades must be carried out elsewhere in Palmwoods: at the Margaret Street and Jubilee Drive intersection, including new turning lanes and a pedestrian refuge; and at the Woombye-Palmwoods Road and Chevallum Road intersection, with additional lanes and a left-turn lane.
The initial application was rejected after 10 of 11 councillors voted against it, with concerns being raised about its location outside of the town centre and because there is a long-existing approval for a smaller supermarket within the town centre. Developer Burnett Street Nominees Pty Ltd is behind that project, and was a co-respondent to NeuBau’s appeal, but then withdrew in May 2025.
The Coles site had previous approval for 55 townhouses on its southern edge but the developer is planning to deliver the shopping centre instead.
Other conditions include environmental and amenity measures, with a fauna management plan required and acoustic barrier fencing to be installed. Flood mitigation has also been addressed, and a stormwater management plan has been devised to stop adverse off-site impacts.
Trading hours will be restricted to 6am-9pm Monday to Saturday and 9am-6pm on Sundays and public holidays.
The NeuBau Group website says the supermarket will add to the range of services in the town.
“The site occupies a high-profile and an easily accessible location for the existing and future local resident population,” it says.
“In total, approximately 559 jobs are likely to be created both directly and indirectly, including a number of youth employment opportunities, with retail developments generally employing a large number of younger staff.”
It says specialty shops were specifically excluded from the design to avoid detracting from other retail offerings in the town centre.
“This approach allows for the satisfaction of the community’s needs without adverse consequences on other centre uses in the locality,” it states.
The project attracted 192 properly-made submissions during the initial application process.
A spokesperson for site owner Neubau Holdings No.22 Pty Ltd said they were thrilled to receive the green light for the project.
“We are delighted to receive the approval. We have been committed to providing the Palmwoods community with a long-overdue, full-line supermarket from day one and it is very pleasing to finally realise that this can now happen,” they said.
“We have had overwhelming support from the community from the beginning, and since the decision we have received very positive feedback from a very happy community.”
The spokesperson said the approval followed negotiations with the council.
“It is not unusual for all parties in an appeal situation to re-evaluate their position in respect of the appeal at any point during the process,” they said. “In this case, council resolved at its November 2025 ordinary meeting to seek to settle the appeal, and we were subsequently able to agree on a set of conditions of approval.”
Sunshine Coast Council was contacted by SCN but said it would not comment on the matter.
“Council recognises the role of the Planning and Environment Court in assessing and deciding planning appeals and acknowledges its decision,” a spokesperson said.
“In line with standing practice, Sunshine Coast Council does not discuss specific legal matters.”
The website says the build is expected to take about 12 months but the NeuBau spokesperson said it was hard to say when construction would commence.
“There is still a lot of work to be done before construction can commence in detailed design, engineering and works approvals. The intent is to move into this phase as soon as possible,” they said.
The approval has a six-year currency period.
