Our Shire is experiencing a chronic housing shortage with accommodation urgently needed for the existing workforce.
Population and economic growth have been held back by the lack of suitable available land to further expand residential areas within proximity to the tourism destinations and agricultural producers in the southern and coastal areas of the Shire.
Residential growth is hampered by an increasingly inappropriate housing mix, the marginal viability of residential land development (development costs are close to the final sale prices), and a relative lack of affordable and environmentally sustainable housing.
Private investors alone are unlikely to make enough profit to make development viable without a subsidy to offset infrastructure costs. The delivery of water and sewer infrastructure, footpaths, street lighting, drainage, intersection works, electrical and telecommunication service will be required to secure the developments.
We know tourism and the visitor economy have been impacted with the COVID-19 pandemic, and the subsequent reduction in overall overseas and interstate visitors to the Great Ocean Road Region. It is still important to plan for projected increases in visitation to the region as a long-term strategic context to planning for the future of Simpson and Timboon.
We have established strategic direction in our ‘Council Plan 2021-2025’ to support new housing opportunities and population growth, promoting Corangamite Shire as a lifestyle residential destination.
A projected short-term increase in the local tourist market also presents opportunity.
The forecast growth in tourism will require new development and building of infrastructure to service tourism operations. This project identifies Simpson’s capacity to act as a key service centre for the growing tourism and agricultural sectors, including housing for workers in tourism facilities along the Great Ocean Road.
‘Unlocking Housing – Simpson’ addresses post COVID-19 population growth and associated demand for housing in regional locations, as people from metropolitan areas of Melbourne and Geelong seek to relocate to towns within Corangamite Shire.
The combined effect of these housing dynamics is that there is a significant shortage in housing for key workers and potential residents to rent or purchase right across the region. The shortage of supply has compounded inflation in the local property market.
Affordable land supply is a key element of Corangamite’s strong economic competitiveness and must be maintained.
The key issues are:
- The region has experienced minimal growth in housing stock;
- Many short-term rentals, particularly in tourism destinations, are unoccupied and underutilised;
- There is a strong correlation between high house prices and holiday homes;
- Rent increases because of lack of supply;
- Workers having to travel large distances for employment;
- The cost of developing land and buildings in some locations does not allow for commercial returns based on land value.