2017-04-11 Planning & Environment Committee Agenda

PLANNING & ENVIRONMENT COMMITTEE MEETING AGENDA    11 APRIL 2017




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PLANNING & ENVIRONMENT COMMITTEE MEETING AGENDA                                                     11 APRIL 2017

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                 Figure 2.1 shows the average annual occupancy rate from July 2015 to June 2016 based
                 on available data. As is evident, seasonal trends in occupancy rates for Beach Road Holiday
                 Homes generally reflect that of Noosa’s broader market. However, low occupancy levels
                 achieved during the peak Christmas period are indicative of owner usage during the holiday
                 periods rather than a lack of market demand.
                 Although data for only two of the 22 dwellings in the letting pool must be interpreted with
                 some caution, discussions with the owners/applicants suggest that they are reasonably
                 typical of the broader performance, as lettings should be evenly distributed over available
                 dwellings over time.  That is, property management does not favour one dwelling over
                 another comparable one in the letting pool.
                 Figure 2.2: Occupancy Rates, Beach Road Holiday Homes in Letting Pool (Two Dwellings)

                 70.0%

                 60.0%

                 50.0%

                 40.0%

                 30.0%

                 20.0%

                 10.0%

                  0.0%
                        Jul-1S Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
                 Source: 2015-16 Occupancy records for two Beach Road Holiday Home properties.
                 An average occupancy rate of 22.8% is quite low, particularly after several years of
                 operation and, were the Beach Road Holiday Homes purely a commercial venture, it would
                 not be economically viable. However, as all 48 owners pay body corporate fees to maintain
                 common properties and facilities regardless of occupancy levels achieved (or even their
                 participation in the centrally managed letting pool — which most do not), the development is
                 not dependent upon achieving a “breakeven” occupancy level as might apply to other
                 resorts, hotels and motels for survival.
                 The indicative low occupancy level does not reflect owner use for holidays or use by friends
                 and relatives under private arrangement, which would probably increase the overall
                 occupancy of the Holiday Homes, but not (necessarily) the revenue generated.

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                 Noosa North Shore Needs Assessment
                 16017 Rev 0 Draft
                 11 November 2016

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