The Queensland region with the tightest residential vacancy rate in the state is primed for a turnaround, after its Council cut fees to incentivise multi-dwelling construction.
Goondiwindi Regional Council (GRC) is introducing 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) COO Dean Milton said the move, welcomed by the real estate peak body today, was an exemplary way Council’s 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,” Mr Milton 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, its pleasing to see GRC trying a carrot (rather than a stick) approach to maximise new housing opportunity in a targeted way.”
Meanwhile, Logan City Council will introduce new secondary dwelling infrastructure charges from February 2023, to match the charges for auxiliary units in Logan.
“Logan’s vacancy rate is 0.7 per cent which is still a far cry from what we consider ‘healthy’ at 2.6 – 3.5 per cent,” Mr Milton said.
“Our view is that introducing new fees acts as a deterrent for property owners to bring secondary dwellings to the rental market, and is contrary to the intension of the amended regulations for granny flats.
“Private investors are playing a really vital role, housing a significant proportion of the community, and there’s opportunity for government to do more to encourage and incentivise that.”
This article was contributed by REIQ.
You can find more information at: https://www.reiq.com/
Original article source: https://www.reiq.com/articles/states-tightest-rental-market-cuts-construction-fees/