Dubbo real estate: Council considers property development role

A NSW council is considering a bold plan to help fix a housing shortage which is ‘worse than it’s ever been’ and ease pressure on renters.

A severe shortage of rental properties has prompted a council in regional NSW to consider whether it could move into property development to fix the problem.

In the Orana region of western NSW in March 2021, a Real Estate Institute of NSW survey found there was a residential vacancy rate of just 0.8 per cent — one of the lowest in the state and despite Sydney reporting a rate of 4 per cent.

Acting Dubbo mayor Stephen Lawrence wants to fix the housing crisis. Picture: Christian Gilles

At Dubbo Regional Council’s May meeting, the acting mayor Stephen Lawrence got majority support to request the interim chief executive officer prepare a report on the housing crisis and arrange a forum to look at how to solve the problem.

Dean Frost, council’s interim CEO, has now been tasked with reporting on how council can work with other levels of government or the private sector to reduce pressure on renters, and councillors want him to explore if there if there is a possible role for council in property development.

Cr Lawrence said most new residents moving to Dubbo who he spoke to had said they struggled to find rental accommodation and the shortage was “worse than its ever been”.

“It’s hurting people in the community and I think it’s incumbent upon us to address it,” Cr Lawrence said.

Keswick housing estate, part of the booming development area of Dubbo. Picture: Toby Zerna

Councillor Greg Mohr said he was concerned a potential conflict of interest could arise if council entered the property development space because councils were largely responsible for deciding what developments get approved.

“How can you be the umpire and in the market as well,” Cr Mohr said.

Cr Lawrence said no final decisions had been made and “the motion is seeking advice merely on the possibility” of council entering the property development arena.

“I don’t think people should be too concerned about that particular issue,” Cr Lawrence said.

Former Real Estate Institute of NSW Orana division chairman, Adam Wells, declined to comment when approached to speak about this issue.

Former Real Estate Institute of NSW Orana division chair Adam Wells. Picture: Ryan Young

The Dubbo News understands Mr Wells stepped down from his role as chairman of the division after a media release was sent out on March 16 which suggested council consider using part of Keswick Estate for medium density housing.

Dubbo real estate agent Bob Berry said Dubbo was not out of the ordinary when it came to rental property shortages.

“Dubbo is like most areas of regional NSW, where there is an undersupply of residential housing accommodation,” Mr Berry said.

“With the council working with the whole of the residential housing sector, we can turn the challenges into opportunities.”

Dubbo real estate agent believes more flats and units are needed in the city. Picture: Ryan Young

Mr Berry said Dubbo had a shortage of units and flats, and stakeholders like major employers who were integral to addressing skilled workforce shortages, had a role to play in ensuring their employees had places to live.

“Quite clearly the demand for residential accommodation is exceeding the supply, we’ve got to come up with a way of increasing supply,” he said.

“We’ve got to be able to produce more rental accommodation in the form of flats and units for the younger demographic and the younger professionals who are coming to work at the hospital and the Tomingley mine and all the other places.

Mr Berry said business as usual was not an option if the housing crisis problem was to be solved.

“If the private sector had been providing and producing the accommodation that we needed, we wouldn’t be in the position we’re in now.

“That is not a criticism of any builders or developers in Dubbo … the builders who have been operating in Dubbo have been building homes because there’s been a ready demand, the market has been generally well supported … and if they build those and know they can sell them why depart from that.”

The report into the housing crisis will be delivered to council in July.