Plan to kickstart Mackay’s sluggish housing market

Seven-year slump in residential development approvals forces the council to consider new incentives

A development services proposal said Mackay’s building approvals had plummeted, with current rates a fifth of what they were in 2012-13. Picture: Zizi Averill

SLUGGISH housing growth has provoked Mackay Regional Council to review its development policies, potentially offering greater discounts for new homes.

A development services proposal said Mackay's building approvals had plummeted, with current rates a fifth of what they were in 2012-13.

The council report said Australian Bureau of Statistics data recorded 1792 detached and other dwellings were approved in 2012-13.

Last year, that dropped to just 340 approvals.

In response, the council will consider a proposal to extend concessions under the Facilitaing Development policy at the Wednesday meeting.

"(It) responds to a more recent decline in the new supply of housing types such as townhouses, units and attached dwellings," the report said.

"The demand for units and townhouses has remained relatively constant, irrespective of changes in median sale price or the supply of new housing to the market.

"In response to local market conditions it is proposed that the policy be amended to include a new schedule that promotes the development of other housing options that are not currently being provided in the market."

The changes, if approved, would reduce infrastructure charges and delay payments for housing developments in priority development areas, including the waterfront Prioity Development Area.

The new incentives would slash reduced infrastructure charges by up to 25 per cent, with a maximum concession value of $250,000.

Mackay Regional Council will consider a proposal to extend concessions for developers at the Wednesday meeting. Picture: Zizi Averill

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It suggested a delayed payment of up to 12 months and a service connection fee discount of up to $500.

"(We) seek to achieve a settlement pattern that includes a range of housing to improve housing diversity and choice, is more affordable and achieves greater residential densities than historical patterns of development," it said.

The council said while the changes would not directly influence demand, it would provide financial incentives to willing developers.

But the changes, if approved, will have an impact on council coffers.

It said council payments for a one or two-bedroom home would be $5239 less, while a home with three bedrooms or more would be $7334 cheaper than under the previous scheme.

"However, in the absence of the proposed schedule then potentially either the targeted development would not occur at all or an alternative development outcome would be realised," the report said.

Without the incentives, it also suggested developments may produce less council revenue, with developments attracting smaller charges, or seek construction projects in lower density areas.

This would go against the council's aim of creating "housing diversity and greater residential densities".

 

Mackay Regional Council will consider a proposal to extend concessions for developers at the Wednesday meeting. Picture: Zizi Averill

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Since 2014, the council has approved 57 community facilities through the facilitating development policy, with a total construction value of $434.8 million.

The report estimated the flow-on economic impact would have generated $1 billion for the region and more than 2000 construction jobs.

The council consulted with the City Centre Reference Group, Mackay Tourism, Urban Development Institute of Australia and Master Builders as part of the proposed changes.

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