‘Build up’: The unanimous verdict from leaders on how to fix Townsville’s CBD
After decades of decline in CBD, Townsville’s leaders agree that we need to dramatically increase apartment construction, but it requires a team effort to overcome the obstacles. Read how we can level up our CBD.
For decades, Townsville’s CBD has been a ghost town, a daunting challenge with no silver bullet in sight. But a fierce new consensus is mounting: Build up or fade out.
From politicians to planners, the message is unanimous – Townsville’s heart needs residents.
Injecting life means tackling Townsville’s housing shortage by leveraging existing infrastructure, smashing suburban sprawl, and using “more eyes on the ground” to discourage anti-social behaviour.
During the recent mayoral by-election campaign, new Townsville mayor Nick Dametto’s made revitalising and breathing life back into the CBD a key plank for his campaign platform.
His ambition was to “start building up again”, like what happened in the CBD during the mid-2000s, to increase the density of residents from 1500 to 5000, so “you can start having a critical mass to make sure everyone in those cafes, bars, restaurants, and businesses has someone in them seven days a week”.
Looking across Townsville’s city skyline, there is just one crane in the sky at Castlerock’s government office building construction site on Walker St, and the last significant apartment project was completed 12 years ago.
Experts say it boils down to apartment projects not stacking up economically, where a range of factors, particularly prohibitive construction costs, have stopped our vertical construction aspirations in their tracks.
This isn’t just a local challenge, with the Australian Bureau of Statistics (ABS) reporting in October that Australia’s total number of dwellings approved fell 6.4 per cent to 15,832, with approved apartments falling 39.2 per cent (to 3,397 dwellings) – 13.8 per cent lower than the average of the past twelve months.
In North Queensland there was a 52.4 per cent drop in multi-unit dwellings for the month, but a rise of 20.2 per cent over the year to 131, according to Masterbuilders and the ABS.
A recently released report from the Property Council of Australia put a price tag on inaction on redeveloping five of Townsville key CBD sites, saying we were missing out on $240m in economic benefits, including $44.2m annually, as well as 1400 construction jobs, 366 permanent jobs, 558 new residents, and a $1.95m annual boost in rates.
While building upwards isn’t the only solution for bringing life to Townsville’s ailing city heart, it was the guiding star for a broader discussion between the Townsville Bulletin and the city’s leaders and visionaries, in the quest to transform words into tall, concrete actions.
Property Council maps out Townsville’s CBD challenges
Townsville’s CBD is “struggling”, and even with significant policy levers and incentives, new projects in the city centre are still difficult to make financially feasible, according to the Property Council’s recent report.
Property Council of Australia Queensland Division executive director Jess Caire feasibility challenges remained the largest barrier to transforming the CBD, driven by the toxic mix of high construction costs, low appeal, and underinvestment in the city centre.
Even with incentives like site value gifting, waiving infrastructure charges, and height increases, she said projects still largely failed to stack up.
Despite the Townsville City centre being the focus of planning efforts for more than a decade, with the council introducing incentives and planning initiatives, and Priority Development Area (PDA), alongside ambitions to revitalise the Ross Creek Waterfront, she said there had been “little movement”.
“Every year we delay, we lose opportunities for jobs, housing, and a vibrant city centre. And for those sceptics asking why to proceed in an environment that is financially challenging this is precisely where local government can play a key leadership role,” Ms Caire said.
“By maintaining a laser-sharp focus on the city centre and championing catalytic projects that support the private sector, we can transform Townsville into a thriving, connected heart of the region.
“The only way to drive vibrancy and life back into the city centre is with a clear, targeted vision supported by a plan to deliver. Without that, we’ll keep spinning our wheels.”
She said bringing people back to CBD was the key to revitalising the area, and the best way to directly do that was by encouraging more residential developments, which activated spaces and created safe environments, which in turn attracted even more people.
“What we need now is a catalytic project (like the Waterfront Priority Development Area), backed by a clear vision, to kickstart foot traffic and transform how people experience the city centre,” she said.
“The Property Council has long called for a Coordinated Townsville CBD Redevelopment Strategy, a plan that brings all levels of government together with the development industry to apply targeted incentives (levers) to unlock under-utilised sites.
“This strategy must also consider alternative delivery models and governance structures that enable effective implementation and clear accountability.
“We see this as a critical first step in resetting the agenda and driving real change and it is pleasing to see newly appointed Mayor Nick Dametto have a real focus on the importance of the CBD.”
No option should be off the table from density bonuses, infrastructure charge relief or deferrals, and the council leveraging their own assets to generate revenue.
“We’ve seen this done successfully in Adelaide, where the council sold air rights above a market to fund its refurbishment, top up a future fund, and secure ongoing rates from the apartments delivered,” she said.
“That’s the kind of bold, creative thinking we will continue to advocate for.”
New mayor outlines his CBD density-boosting vision
Freshly sworn into Townsville’s mayoral role, Nick Dametto has begun pursuing his vision of encouraging more residential development in the city centre, which he regarded as key for its revitalisation.
He was also keen to broaden the activation of the CBD through other diverse projects including hotels, short-stay accommodation, new office space, and vibrant restaurants, bars, cafes, and entertainment to attract both residents and visitors
“Equally important is investment at street level, through greening, activation, and importantly community safety to create a lively, welcoming environment where people feel encouraged to explore, support local businesses, and enjoy our city,” Mr Dametto said.
“We need both feet on the street and cranes in the sky.”
He said the economics of apartment construction were challenging, even in capital cities, with housing prices rising sharply, and construction costs climbing even higher.
“Recent research by the Property Council of Australia confirms that, without significant government support, new apartment development in Townsville’s city centre is not currently viable,” he said.
“To stimulate investment, we need a co-ordinated support program between the State Government and Council in partnership with industry. This must include financial incentives, removal of unnecessary regulatory barriers, and investment in the public realm – alongside continued activation and action on anti-social behaviour.
“The state government’s key land use planning and property development agency) Economic Development Queensland can play a pivotal role in identifying and backing the projects that will put cranes in the sky and get Townsville moving.”
To support more apartments being built, the council offers a waiver of up to $275,000 in infrastructure charges for infill housing development in established areas, like the city centre.
The mayor was heartened to see the CBD experiencing its strongest wave of confidence and investment in years, where projects like the $30m Flinders Street Wharves had opened, and the six-storey Castlerock development was taking shape, and several buildings were having new life breathed into them. including the former Westpac Bank, Citilink building, and Metway Arcade.
“The formation of the Uptown group has also begun to drive activation, and importantly the State Government and Council are stepping up to tackle anti-social behaviour,” he said.
“But I’ve listened to Townsville and the message is clear, we must do more – I and Council are committed to working with the State, industry, and community to deliver a vibrant, thriving city centre our whole city can be proud of.”
Check out Monday’s paper where the Townsville Bulletin will continue to explore the challenges and solutions to help lift Townsville’s CBD to the next level, hearing from designers Counterpoint Architecture and planners Brazier Motti.
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Originally published as ‘Build up’: The unanimous verdict from leaders on how to fix Townsville’s CBD
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