By Sonia Isaacs
A LONG-running and divisive proposal for a Coles supermarket in Palmwoods has been approved, with the Planning and Environment Court overturning Sunshine Coast Council’s refusal and clearing the way for a major new shopping centre.
The April 2, 2026 ruling allows NeuBau Holdings to proceed with a 3,869sqm retail development at 22 Palmwoods–Montville Road, anchored by a full-line supermarket and liquor store.
The project will reshape the 9.8-hectare site, including subdivision into two lots, a new internal access road, and at least 187 car parks, with dedicated spaces for staff, people with disabilities and electric vehicles.
A key component of the approval is a new four-leg roundabout at the intersection of Palmwoods–Montville Road and Churchill Street, aimed at improving safety and access.
Developers must also deliver pedestrian footpaths up to three metres wide along nearby roads to improve connectivity.
The court imposed extensive conditions in response to 192 public submissions, including acoustic fencing up to 3.5 metres high to protect neighbouring properties, and environmental measures such as a nest box management plan to offset habitat loss.
The developer must also implement a comprehensive stormwater management plan utilizing bioretention basins to ensure no adverse flood impacts occur on external properties.
Division 5 Councillor Winston Johnston said council’s legal case was significantly weakened after a previously approved supermarket site in Palmwoods was withdrawn last year.
The council had initially refused the development because the site lay beyond the local area plan for Palmwoods’ commercial core, already had approval for medium-density housing and because another supermarket site existed within the commercial core.
“With that approval gone, it really came down to Palmwoods needing a supermarket and there being no other viable location,” Cr Johnston said.
He said council shifted its focus during mediation to securing the best possible outcome, including infrastructure upgrades, floodplain land transfers and strict amenity protections.
First lodged in 2023, the proposal has divided the community, with supporters citing the needs of the growing town, while critics fear it could undermine Palmwoods’ village character and existing small businesses.’
The development permit remains valid for six years.