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Sprawl has so many extra costs too particularly around transportation. Given council budgets are already severely pressured its hard not to pre-judge that there’ll be at the least a decrease to overall public transport by dilution if not just no services in some areas. So more traffic on local roads which means more emissions and more cost on councils maintaining roads for more cars.
#1 & #2 does feel like a bit of a gift to the folks who got in some years ago and banked land on the boundaries. Explains why an apple orchard down the road felled all the trees and just left them there - no new grafts or anything; the block got bought by a major property developer who must have seen the chances of either a zoning change or removal of the urban/rural zone coming.
Sprawl typically also means fewer 200+m2 houses on larger blocks of land when looking at opening up public spaces and building denser housing close to public transport is a better solution for long term transport emissions.