Primed for turnaround

Jump-start for residential investment

THE Queensland region with the tightest residential vacancy rate in the state is primed for a turnaround, after its council cut fees to incentivise multidwelling construction.

Goondiwindi Regional Council (GRC) has introduced a year-long rebate for all council fees and charges associated with constructing new multi-dwelling buildings such as units, townhouses, duplexes and granny flats.

Real Estate Institute of Queensland (REIQ) chief operating officer Dean Milton said the move, welcomed by the real estate peak body, was an exemplary way councils could help incentivise much-needed new housing supply.

“With the Goondiwindi region hovering barely above the ‘no vacancy’ line at just 0.1 per cent for the past two quarters, it’s welcome news to see council acting to remove financial barriers to new housing supply,” he said.

“The REIQ has been advocating for innovative ways to incentivise investors to bring more housing supply to market, both in the short and long term.

“In this vein, we recently welcomed the state government opening up renting granny flats to a separate household and similarly, it’s pleasing to see GRC trying a carrot – rather than a stick – approach to maximise new housing opportunity in a targeted way.”

To be eligible, the building application must be received and approved between January 3 and December 31 this year, with construction completed and certified before December 31, 2025. The rebate will not apply to stand-alone houses, temporary multi-dwellings or shortterm accommodation.

Goondiwindi Regional Council Mayor Lawrence Springborg said the council was doing all it could to encourage private sector development in the region and relieve rental pressure.

“Ultimately, the private sector is best placed to determine supply and demand requirements – but council is assisting by removing a cost barrier to proceeding with the construction.

“Rental shortages and housing affordability are a national issue, and Goondiwindi Regional Council is the first in the state to take this extremely proactive approach of refunding all council fees for multi-dwelling buildings,” he said.

A healthy housing rental vacancy rate should be 3 per cent as this allows for population growth, enabling local employers to attract and retain both skilled and unskilled workers to a region.

“There is land availability in our region, and good capital and rental returns to be made from investment in the Goondiwindi region,” Mr Springborg said. “We’re all aware of the construction challenges of recent years, however, we’ve had confirmation that there are local builders able to start works in 2023, and even more with the ability to meet the 2025 construction deadline.

“The focus on multi-dwellings is in direct response to market needs.

“We know for example that there’s huge demand locally for twobedroom units – from professionals to young couples and older people looking to downsize.”