Townsville’s housing shortage will be met head on by a new build-to-rent residential project, promising to build almost 300 apartments in two 12 storey towers, accommodating between 500 to 700 residents.

Last Friday, Queensland-based property developer GEON lodged a development application with Townsville City Council for the city’s first large scale Build-To-Rent (BTR) project at Fairfield & Co – its $125 million mixed-use retail and lifestyle precinct at Darcy Drive, Idalia.

The Queensland Government has partnered with the development sector to deliver affordable rental housing through new BTR developments, offering concessions to construct large-scale residential properties specifically designed, built and managed for long-term rental, generating long-term income for developers, rather than upfront sales or capital growth.

Hopeful of receiving council approval before the end of the year, GEON Project Director Mark Hunt​​​​ said their next stage involved detailed design and obtaining additional approvals, with ground broken in 2025, and the project completed by late 2027.

Taking a “broad brushstroke across all demographics”, the north-facing towers will offer a range of different apartments for both short term and long term stays, with the ground floors set aside for retail and commercial, and the next two floors providing a total of 252 parking spaces.

“There’s a massive housing shortage across the country, and it’s pretty acute in Townsville, (which) has been specifically mentioned in industry forums down here (in Brisbane) as being a real issue,” Mr Hunt said.

“In particular … finding accommodation for those essential workers that Townsville needs. So this is in response to that demand and housing supply issue.

“We’ve had engagement with major employers and organisations that are certainly interested in the proposal, and ultimately, it boils down to just the need for housing across the board.”

The total value of the privately funded project remains unclear.

With the large format retail sector experiencing “some challenges”, he said Fairfield & Co represented a pivot towards exploring other opportunities, by embracing entertainment and lifestyle related businesses like Urban Climb and X-Golf, and now BTR.

The development is ideally located to help meet the planned influx of Australian Defence Force members and their families into the city.

GEON Living Chief Executive Officer Dan Moore said Fairfield & Co BTR would make a significant impact on both job creation and economic development.

“With nearly 10 consulting firms currently involved, including four with local offices, the project will then generate between 100 and 150 construction jobs, providing a substantial boost to the local workforce,” Mr Moore said.

“Beyond the construction phase, the development will continue to benefit the community by creating permanent on-site management positions, cafe and convenience and utilising a wide range of local goods and services.”

Given the flood prone nature of the suburb, Mr Hunt said the project would be built up to a minimum of 4.4m above sea level, or even higher, to provide flood immunity.

GEON is already very active in Townsville, redeveloping Rasmussen’s Riverway Plaza, and nearing completion of the $60m Weststate Private Hospital in West End.

Source: Townsville Bulletin, September 2024.