Build 12 in 12 Expression of Interest For Builders and Developers

BUILD 12 IN 12

Expression of Interest For Builders and Developers

May 2024

We are seeking Expressions of Interest (EOIs) from builders and developers who are passionate about contributing to the growth and development of the Central Highlands through the delivery of sustainable housing solutions.

The Central Highlands region of Queensland is experiencing a critical shortage of housing, particularly in Emerald and Blackwater. The extent of this challenge is documented in the Central Highlands Workforce Development and Accommodation Strategy (WDAS).

To address this pressing need, Central Highlands Development Corporation (CHDC), in collaboration with Central Highlands Regional Council (CHRC), is launching the Build 12 in 12 campaign. This initiative aims to construct 12 new homes within a span of 12 months.

At its core, Build 12 in 12 represents a collaborative effort, bringing together government, private sector landholders, builders, and developers to devise innovative housing

solutions. We believe that by working together, we can make a significant impact on the local housing landscape and improve the quality of life for our residents.

The purpose of this EOI is to identify the incentives that would support your involvement in the campaign. These may include financial assistance, regulatory support, access to land, or any other resource that would facilitate the construction process.

The information you provide with enable us to initiate productive dialogue with both private and public stakeholders to gauge interest in the incentives and conditions proposed.

Thank you for your interest and support.

Central HIGHLANDS

The Central Highlands is a robust and diverse region situated at the heart of Australia’s resource and agricultural sectors.

Spanning almost 60,000km2, the region encompasses a significant portion of the Bowen Basin, Australia’s largest coal reserve, and is home to eight metallurgical and four thermal mines.

POPULATION

28,311

6,000+ Non-resident workforce

1.9% Annual growth (Emerald)

34 YEARS Median age

With the largest cattle inventory in Australia, the Central Highlands stands as a beef powerhouse. It is also characterised by thriving broadacre cropping and horticultural industries, sustained by irrigation sourced from water storage on the Nogoa and Comet Rivers.

Pristine natural attractions, including Carnavon Gorge, the Sapphire

TOP INDUSTRIES

MINING AGRICULTURE

CONSTRUCTION

HOUSING OWNERSHIP

41% Rented

22% Owned outright

28% Owned with a mortgage

MEDIAN SALES

■ Emerald

$365,000 House (up 8.3%)

$215,000 Unit (up 13.2%)

■ Blackwater

$215,000 HOUSE (up 19.4%)

$265,800 UNIT (up 29.7%)

HEADLINES

■ Emerald’s population has grown by 1.9% per annum over the past decade. This growth is compounded by a 7% increase in the non-resident workforce over the past 12 months. On any given day, the region is supporting an extra 30% of workers.

■ To achieve a healthy rental market of 2.5% vacancy rate, Emerald needs 48 additional rentals, Blackwater 14, and Capella 5. The vacancy rate across the region currently ranges from 0.5% to 1.2%.

■ Emerald needs 236 new dwellings to meet current growth, equating to almost 60 builds per annum over the next four years. This contrasts sharply with the current rate of 10 builds per annum across the entire region.

■ Residential construction costs range from $2,200m² to $2,600m². A 200m² house, including land, could cost up to $675,000, significantly exceeding Emerald’s median house price of $365,000 and therefore impacting the viability of new builds.

Gemfields, and Blackdown Tableland National Park, are driving an emerging visitor economy.

CENTRAL HIGHLANDS

MEDIAN WEEKLY INCOME

■ Personal

$1,011 Central Highlands

$787 Queensland

■ Household

$2,095 Central Highlands

$1,675 Queensland

MEDIAN RENTAL

■ Emerald

0.52% Vacancy rate

$450/WEEK House (up 4.7%)

$350/WEEK Unit (up 6.1%)

6.5% - 9% Rental yield

■ Blackwater

1.04% Vacancy rate

$350/WEEK House (up 3.7%)

$240/WEEK Unit

7% - 9% Rental yield

■ At least 300 new beds are currently required to accommodate the nonresident workforce. An additional 800 beds may be required over the next five years.

■ The Central Highlands is short 616 childcare spaces. Addressing the shortfall hinges on affordable construction, alongside the provision of accommodation and incentives to attract educators to the region.

Why BUILD 12 IN 12?

With continued and sustained challenges facing the region, particularly workforce retention and attraction, coupled with ongoing housing issues, the time is right for a bold approach.

Rental vacancy rates in Emerald are at a record low of 0.5%, and rental waitlists are extensive. Other towns in the region are in a similar situation.

Employers across a range of sectors, from mining and agriculture to professional consulting and government, are struggling to fill vacancies due to the lack of accommodation.

Build 12 in 12 is all about understanding how and under what conditions a push in new builds could be accommodated in the current market. We are actively seeking the views, thoughts, and ideas from the experts in industry on what and how this could happen. Without

The OPPORTUNITY

This EOI process aims to understand what will motivate and incentivise the building sector to invest and construct within our region.

It is purposely open in its ask and is seeking genuine ideas on what is needed to see a fundamental shift to stimulate development activity.

We encourage builders to specify the minimum number of builds they would need to undertake to make new

EXAMPLE RESPONSES

• Builder 1 Build dual occupancies in Blackwater with a view to hold for rent.

Incentives sought Serviced lot, support for development approval, and a guaranteed fixed rent at $350/week for a two-year period.

• Builder 2 Build two 4-bedroom properties in Emerald. Incentives sought Side-by-side serviced lots, reduced land price, and rates waiver for two years from completion.

• Developer 1 Using modern methods of construction, deliver a variety of products including studio, 1-bedroom, and 2-bedroom.

Incentive soughts Land lease of five years at nominal rate and a guaranteed rental of each unit for a minimum of three years.

collaboration and a genuine shift in thinking, this challenge will not be overcome.

From the use of modern methods of construction to financial assistance and land consideration, we want to know how we can collectively accelerate the construction of new housing without compromising the local asset base and expectations of community for quality housing.

KEY OBJECTIVES

• Address the housing shortfall in the Central Highlands region, with a particular focus on Emerald and Blackwater.

• Collaborate with builders to deliver high-quality housing that meets the needs and preferences of our community.

• Explore innovative solutions to make new builds more affordable and accessible to a wider range of residents.

• Construct at least 12 new homes in region within 12 months.

housing options more affordable. New builds may include different forms of both detached and attached product, provided for both sale and rent.

All methods of construction are encouraged, including diversity of the product, with the fundamental principles applied ensuring the quality of end asset, appropriate certification, and valuations on par with existing median price.

• Developer 2 Partner with a large local employer to construct key worker accommodation.

Incentives sought Serviced lot, support for development approval, and a guaranteed commitment to long-term lease.

• Builder 3 Build five 4-bedroom homes in Emerald, targeting first homeowners.

Incentives sought Serviced lots located in the same street and an additional local cash grant up to $20,000 to support an overall reduced build price.

These examples are not exhaustive and will require further consideration. The more detail that can be provided in relation to the incentives or conditions sought the better.

EOI respondents need to acknowledge that identified incentives may require collaboration and/or approval from other parties.

EXPRESSION OF Interest

1 2 3 4

EXPRESSIONS OF INTEREST SOUGHT

EOIs open from 15 May 2024 to 15 June 2024.

EXPRESSIONS OF INTEREST CONSIDERED

Review undertaken of the EOIs, including assessment by the Workforce and Accommodation Collective at the June 2024 meeting.

ENGAGEMENT WITH LANDOWNERS

Major property owners, such as CHRC, will consider the EOI responses as part of their own property process.

FURTHER TENDER, REQUEST FOR PROPOSALS

Private and public sectors will conduct their own procurement processes or put opportunities to market based on the feedback received during the EOI process.

SUBMIT Here

To lodge your Expression of Interest, visit chdc.com.au to either complete the EOI form online or download the EOI form to submit via email.

Application close on 15 June 2024.

Build 12 in 12 is an action of the Central Highlands Workforce Development and Accommodation Strategy. The full strategy and action updates can be found at chdc.com.au

ACTION 4 Build 12 in 12

CHDC to develop and launch an Expression of Interest (EOI) from builders and developers to support the Build 12 in 12 campaign, aiming to have at least 12 new builds across the region within 12 months. CHDC will collaborate with key property owners, government agencies, and companies to develop additional incentives that may support the new builds, such as traineeships, materials, and additional grants for first home buyers. Land (as identified in Action 2) would be located across the region and nominated by both government and the private sector.

Any enquiries throughout the EOI process can be directed to the Workforce Development and Accommodation Strategy team.

CENTRAL HIGHLANDS DEVELOPMENT CORPORATION

76 Egerton Street Emerald Q 4720

T +61 7 4982 4386 E enquiries@chdc.com.au W chdc.com.au