Townsville Enterprise, council seek funds to support Build-to-Rent scheme
A 1000-unit project could be developed in Townsville’s inner-city if plans by the council are supported. See why they’re asking for $4om.
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Townsville Enterprise has welcomed state government incentives to encourage Build-to-Rent housing schemes as it seeks $40m to support 1000 units being developed in the inner-city.
Treasurer Cameron Dick announced on Tuesday incentives, including a 50 per cent land tax discount and exception from foreign land tax surcharges and duties, to apply from July 1.
Townsville Enterprise and Townsville City Council are seeking support for a Build-to-Rent project on the former North Yards railway land the council owns in Flinders St.
The project forms part of Townsville Enterprise’s Unlock the North submission which the organisation and the region’s mayors are promoting to state and federal governments.
Townsville Enterprise CEO Claudia Brumme-Smith said the development body welcomed any incentives to make the Build-to-Rent model more attractive but indicated more was needed to support it in the North.
“Our Build-to-Rent Feasibility Study has shown for North Queensland the issues are more severe than in South East Queensland because the Build-to-Rent model is not as attractive in the North for developers due to higher costs associated with insurance and the supply chain.
“It is 25 per cent more expensive to build in Townsville than in Brisbane,” Ms Brumme-Smith said.
The Unlock the North submission seeks a $40m housing fund to ensure the financial viability of a 1000-apartment Build-to-Rent project.
It says Townsville Enterprise and Townsville City Council have investigated the feasibility of a Build-to-Rent project on the council-owned North Yards site but that there are several locations in Townsville which would be prime sites for Build-to-Rent projects.
Build-to-Rent projects are developed and retained by developers but which provide more secure and flexible leasing arrangements to tenants.
Ms Brumme-Smith said an independent housing demand analysis had demonstrated that to meet future population growth forecasts an additional 9142 dwellings were required in Townsville by 2026.
She said an additional 1574 dwellings were required in the inner-city by 2026.
“To ensure financial viability for developers, we are asking the government for $40m to fund the shortfall for Townsville’s Build-to-Rent project to build 1000 inner city apartments,” she said.
Last year the council asked CEO Prins Ralston to investigate a suitable model to oversee a housing development at the North Yards.
At the time, Mayor Jenny Hill said the project could help address the city’s affordable housing shortage and that there was a great opportunity to partner with superannuation funds.
It is understood the project would be the first Build-to-Rent scheme in regional Queensland.
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Originally published as Townsville Enterprise, council seek funds to support Build-to-Rent scheme
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