HOUSING FUND TO SUPPORT 1,000 NEW INNER CITY APARTMENTS

Addressing The Housing Crisis Caused By The Global Pandemic

Townsville North Queensland and the country are currently experiencing a housing crisis that has been exacerbated by the impacts of the global pandemic. Many people do not have access to long-term, secure and affordable housing.

Additionally, the regional vacancy rate is sitting at 0.9% (SQM, 2022) which is a record low for the region and is compounded by the region’s low unemployment of 2.5% and high proportion of renters (36.6% of Townsville residents are renters compared to the State average of 33.1%).

Townsville Enterprise and Townsville City Council have investigated the financial feasibility of a Build-To-Rent project in Townsville. As a regional city, Townsville faces unique challenges that drive up capital and operating costs associated with developing such a project. These include costs of energy, affordability of insurance and availability and rising costs of construction. In fact, the cost of building new developments in Townsville is 25% higher than in Brisbane. In order to attract private investment a Housing Fund is required to cover the existing cost disadvantages.

BUILD-TO-RENT MODEL:

Build-To-Rent is an emerging housing trend in Australia with most projects currently located in major capital cities. This housing model sees apartment complexes built and designed by developers who retain ownership when complete. The apartments are then rented to tenants with the developer maintaining and managing the complex. These developments are typically underwritten by an institutional investor like a Superfund.

BENEFITS :

Flexible lease arrangements for tenants

Variety of amenities and lifestyle benefits

What We Need

Local and State Government partnership with private and institutional investors to deliver 1,000 dwellings/apartments in the Townsville Local Government Area.

$40 million from State or Federal Government for the shortfall of the Build-to-Rent project for 1,000 dwellings/apartments in the inner city to ensure financial viability for developers.

Urban renewal and activation

Additional housing for growing labour market

Influx of mid to higher end apartment options

STATUS:

An independent housing demand analysis demonstrated that in order to meet future population growth forecasts, an additional 9,142 dwellings are required by 2026. In the inner city specifically, an additional 1,574 dwellings are required by 2026. The feasibility analysis can be made available on request.

There are several locations in Townsville that would be prime sites for Build-To-Rent projects. Townsville Enterprise and Townsville City Council have investigated the council-owned site of the North Rail Yard.

$18.5M GROSS REGIONAL PRODUCT

FTE 135 CONSTRUCTION JOBS

9,142 DWELLINGS REQUIRED BY 2026