Original source · versioned page text
2022-11-14 GC Agenda - Item 4 - Attachment 1 - Short Term Accommodation Monitoring Report 2022
Text sections have not been matched to the original PDF pages. Use the original document to check page numbers.
General Committee Agenda
Noosa Council 14 November 2022
Attachment 1 to Item 4
Short Term
Accommodation
Monitoring Report
November 2022
See the original
The page text is free to read. Viewing or downloading an original file needs an account.
Log in to see the originalLog in to download the original file
Large file: the download may take up to a minute.
Searchable page text hides email addresses. Original files are unchanged and may show email addresses.
Full text of sections 2 to 97 (of 200)
Section 2
Executive Summary ...........................................................................................................3
Purpose of Report ..............................................................................................................7
Report structure .................................................................................................................8
Part 1 State Planning Policy .............................................................................................. 9
1.1 Planning for liveable communities and housing ...............................................................9
1.2 Planning for economic growth .......................................................................................11
Part 2 – Pre commencement of Noosa Plan 2020 .......................................................... 12
2.1 Noosa Overview 2006 - July 2020..................................................................................12
2.2 Community profile – 2001-2021 .....................................................................................14
2.3 Housing market- Housing Needs Assessment 2017....................................................... 16
2.3 Economy and employment 2001 – June 2020................................................................ 23
2.5 Tourist accommodation - Needs and Supply .................................................................. 28
2.6 The Noosa Plan 2006 – Housing, tourism and visitor accommodation ........................... 51
2.7 Other considerations for Noosa Plan 2020 ..................................................................... 61
2.8 Draft Noosa Plan 2020 ...................................................................................................64
2.9 Initial COVID-19 impacts –June 2020............................................................................ 69
Part 3–Commencement Noosa Plan 2020 July 31 2020................................................. 76
3.1 Overview July 31 2020-July 31 2022 ..............................................................................76
3.2 Noosa Plan 2020............................................................................................................77
3.3 Housing Market 2020-22 ................................................................................................89
3.4 Economy and employment 2020-2022 ......................................................................... 98
3.5 Tourist Accommodation 2022 ....................................................................................... 103
3.6 Community wellbeing ................................................................................................... 121
Part 4 Discussion of issues and analysis .................................................................... 125
4.1 Housing and tourist accommodation ............................................................................ 125
4.2 Economy and employment ........................................................................................... 128
4.3 COVID 19 ....................................................................................................................129
4.4 Community well being .................................................................................................. 129
4.5 State Planning Policy ................................................................................................... 130
4.6 Economic and Social Assessment – AEC .................................................................... 131
Part 5 Recommendations .............................................................................................. 135
5.1 Amendments to Noosa Plan 2020 ............................................................................... 135
Appendices .................................................................................................................... 138
Appendix 1 - Data sources ................................................................................................. 138
Appendix 2 Housing Needs Assessment 2017 Tables and Figures.................................... 138
Appendix 3 Economy and employment Tables and Figures ............................................... 142
Appendix 4 The Value of Tourism supporting Tables and Figures...................................... 148
Appendix 5 Noosa Plan 2006 extracts ............................................................................... 153
pg. 1
Noosa Council Monitoring Report 2022/23
Section 3
Appendix 6 Negative affects of short term accommodation and online platforms report extracts
163
Appendix 7 First draft Noosa Plan 2020 ............................................................................. 165
Appendix 8 COVID Impacts ............................................................................................... 169
Appendix 9 Noosa Plan 2020 extract provisions ................................................................ 173
Appendix 10 Housing Needs Assessment 2021 Tables and Figures.................................. 188
Appendix 11 Economy and employment 2021 Tables and Figures .................................... 192
Appendix 12 Noosa Customer Satisfaction Survey extracts ............................................... 195
Appendix 13 Noosa Short Stay Accommodation Economic & Social Assessment Nov 2022 -
AEC ...................................................................................................................................199
pg. 2
Noosa Council Monitoring Report 2022/23
Section 4
Executive Summary
On 18 February 2020 the then Minister for State Development, Manufacturing, Infrastructure
and Planning advised Noosa Council they could adopt Noosa Plan 2020 (NP2020) subject to
a condition to monitor the provisions relating to short term accommodation, tourism and
housing supply for a 2 year period following its commencement. Council adopted NP2020 and
it commenced on July 31, 2020.
Council officers have now prepared a Short Term Accommodation Monitoring Report,
including recommendations to amend NP2020, which must be submitted to the Minister within
6 months of the 2 year monitoring period.
As a baseline measure, the Monitoring Report undertook an extensive review of short term
accommodation under the provisions of the former Noosa Plan 2006 (NP2006) and the
economic, tourism and housing conditions from 2006 – July 2020, prior to the commencement
of NP2020. Various background studies, issues papers, short term accommodation data, as
well as community and economic census data helped to inform the pre NP2020 baseline of
information.
In the 2 year period since the commencement of NP2020, the Monitoring Report has examined
the provisions relating to short term accommodation, tourism and housing supply across all
zones in NP2020. More recent housing and economic studies and strategies, census data,
community feedback and updated short term accommodation data helped to inform the
situation over the last 2 years.
Covid-19 impacts on the economy, employment, tourism, short term accommodation and
housing were also examined both prior to and over the 2 years since NP2020 commenced. A
social and economic impact assessment has also been undertaken by AEC.
The Monitoring report found that legacy provisions from past planning schemes and the
provisions within the former Noosa Plan 2006 generally allowed for a mix of permanent
residential dwellings and short term accommodation for visitors throughout much of Noosa
Shire. The use of dwellings could generally move from permanent occupancy for residents to
short term use for visitors without further approval, resulting in no long term housing security
for permanent residents.
With the emergence of online booking platforms, the number of dwellings being used for short
term accommodation, particularly the use of dwelling houses, increased and issues emerged
around the impacts on residential amenity, housing supply and affordability and the
competition between residents and visitors for a limited supply of existing and future dwelling
stock.
During the preparation of Noosa Plan 2020, the biggest issue for consideration was the
increased use of dwellings, particularly dwellings houses, for short term accommodation in
residential zones and the introduction and spatial allocation of the Tourist Accommodation
zone and the Medium and High Density Residential zones.
In response to rising concerns over the impacts of short term accommodation Council made
the decision to make short term accommodation an inconsistent use in the Low Density
Residential zone in Noosa Plan 2020. Council also introduced a short stay letting and home
hosted accommodation local law to deal with residential amenity, complaints and guest safety.
Other than the Low Density Residential zone, Noosa Plan 2020 currently allows for short term
accommodation of an entire dwelling throughout Noosa Shire, in residential zones, rural
residential and rural zones, major centres, local centres and parts of the district centre zone.
However, since the commencement of NP2020, there has been a world wide pandemic and
national housing crisis, with record low rental vacancy rates and significant price increases in
the rental and purchase markets. Small affordable dwellings for key workers, particularly those
pg. 3
Noosa Council Monitoring Report 2022/23
Section 5
supporting the tourism and hospitality industry, and the older population as well as affordable
family homes are an unmet housing need in Noosa Shire.
This has reached crisis point with many businesses unable to secure staff due to affordable
accommodation shortages and long term residents having to leave Noosa to find housing
elsewhere or seeking refuge in temporary accommodation.
The proportion of Noosa Shire residents either not in the workforce, or earning their income
outside the Shire is relatively high, as is the level of home ownership. These elements also
contribute to the shortage of permanent rental accommodation for workers.
Whilst Covid-19 created unique circumstances for the housing market and there is a national
housing crisis, the legacy planning issues and the current provisions within NP2020 contribute
to the housing situation in Noosa Shire.
The community have been very clear in consultation on various plans and strategies that short
term accommodation is having a significant impact on housing supply and affordability as well
as residential amenity. The long term security in housing supply and housing affordability has
become the biggest issue facing Noosa Shire residents.
It is also considered that Noosa has begun to overreach its carrying capacity, particularly
during tourist peak periods and weekends, with road networks, open space, Noosa River and
Main Beach often at full capacity, with negative impacts associated with this being experienced
by residents and visitors.
Since the April 2020 Tourism Carrying Capacity Analysis was undertaken, there has been an
increase in the number of dwellings being used for short term accommodation, despite the
impacts of COVID-19 throughout the last 2 years; the high demand for permanent rental
properties; the introduction of the short stay letting and home hosted accommodation local
law; and changes made by NP2020 making short term accommodation in the Low Density
Residential zone an inconsistent use.
5,265 dwellings are currently identified as being used for short term accommodation across
Noosa Shire, the highest concentration in the coastal urban area between Noosaville and the
coastal stretch to Peregian Beach, with 31.6% of dwellings used for short term
accommodation. Significantly, 52.7% of dwellings are used for short term accommodation in
Noosa Heads, 33% in Sunshine Beach and 26.4% in Noosaville.
Overall, the use of dwellings for short term accommodation grew by 307 dwellings or 5.7%
over the 2 year monitoring period. Given past growth trends, the use of dwellings for short term
accommodation is likely to continue to grow if left unregulated.
However, the true number of dwellings with use rights for short term accommodation is much
higher, with the majority of all multiple dwelling having use rights for short term
accommodation. Therefore, continued growth in dwellings converting to or being development
for short term accommodation is of high concern for current and future housing supply,
particularly within residential zones intended for permanent housing supply.
Growth in other forms of visitor accommodation, as well as short term accommodation, will
also come from designated visitor only Tourist Accommodation zoned land, at the exclusion
of residents. At the time of writing, around 345 hotel rooms, 15 luxury villas and 16 eco cabins
are either pending a Council decision or at the application stage.
Whilst tourism peaks may see high demand for short term accommodation and supply being
taken up with high occupancy rates, latent supply exists throughout non-peak periods, with
AirDnA figures showing average occupancy of 57.5% on AirBnB and Stayz booking platforms
for the year ending July 2022.
Notwithstanding this, the provision of visitor accommodation is important to the tourism
industry and should continue to be supported in the designated Tourism Accommodation zone.
The extent of land zoned for tourist accommodation, including key sites currently subject to
development proposals, together with the current provision of visitor accommodation, including
pg. 4
Noosa Council Monitoring Report 2022/23
Section 6
short term accommodation, is considered more than adequate to meet current and future
visitor needs.
The continued growth in use of existing or future dwellings for short term accommodation,
particularly in designated residential zones and business centre zones, compromises housing
for permanent residents, particularly key workers who support the tourism industry with labour,
businesses and services.
Short term accommodation being a consistent use in the Medium and High Density Residential
zones, as well as the Rural and Rural Residential zones, compromises the purpose of these
zones for the provision of housing for permanent residents. Likewise, short term
accommodation in the business zones compromises future development for small more
affordable dwellings for key workers in close proximity to transport, employment and services.
This creates competition for Noosa’s limited dwelling stock and land supply, between the
provision of accommodation for visitors and provision of housing for residents, reducing
available supply of permanent housing and driving up prices for both the rental and purchase
housing markets.
Conversely, the take up of accommodation within traditional holiday resorts by residents
seeking accommodation, and multiple dwellings being a consistent use in the Tourist
Accommodation zone, compromises the zone’s tourism purpose and preference for visitors
only.
The mix of permanent and short term dwellings within NP2020 zones creates land use conflict
between visitors and residents impacting residential amenity, sense of community, social
cohesion and resident lifestyle, as well as visitor experience and enjoyment.
Overall, the extensive and growing use of dwellings for short term accommodation has a direct
impact on the community, housing supply and level of affordability, as well as the tourism
economy and labour supply. Without a long term known and secure supply of housing for
residents, including for workers supporting the tourism / visitor accommodation industries, the
hospitality and tourism economy and community are at risk.
The AEC economic and social assessment report concluded that:
Increase in STA between April 2020 and October 2022 suggests NP2020 has not
detrimentally impacted on market supply to meet tourism demands.
There has been no noticeable negative impact of NP2020 on demand or values, with
people wanting to buy more dwellings in Noosa and at considerably higher prices.
Combined with dwelling sales market data, rental market data suggests Noosa is
experiencing considerable issues of undersupply of affordable dwellings available for
residential or worker use, with considerably higher dwelling prices and rents than in
SEQ exacerbating issues associated with rising costs of living.
With the existing supply of short stay accommodation, the additional take-up of latent
supply within these premises to achieve increased occupancy, in addition to
anticipated new supply from commercial accommodation providers, visitor demands
within Noosa’s carrying capacity should be appropriately met into the future without the
need for additional residential housing stock to be diverted.
To meet state planning policy requirements, security of current and long term housing supply
that is affordable and diverse, and meets the housing needs of Noosa’s community, is
required.
Whilst Noosa Council has responded to the residential amenity issues with the introduction of
a new local law, addressed some housing supply issues by restricting further short term
accommodation in the Low Density Residential zone and introduced a specific Tourist
Accommodation zone, further review of the provisions in NP2020 is required.
To this end, amendments to Noosa Plan are recommended to both ensure:
pg. 5
Noosa Council Monitoring Report 2022/23
Section 7
adequate long term housing stock is available and secured to meet the diverse needs
of Noosa Shire’s current and future residents consistent with Noosa Council’s adopted
Housing Strategy 2022; and
adequate long term tourist accommodation, including short term accommodation, is
available to meet the needs of tourists, only where it is compatible with the housing
and economic needs of Noosa’s resident and business community and results in
sustainable levels of tourism consistent with Noosa Council’s Economic Development
Strategy 2021.
Specifically, it is recommended short term accommodation be made an inconsistent use in the
Medium and High Density Residential zones and the Rural and Rural Residential zones, with
the only allowance being residents making their principal place of residence available for short
term accommodation for no more than 4 times and 60 days per calendar year.
Further allowances for home hosted accommodation should remain in place throughout these
zones, and other tourist accommodation such as cabins, farm stays and nature based tourism
only be permitted in the Rural and Rural Residential zone where the resident remains on site.
In the Rural zoned, application may be made for short term accommodation where no resident
remains on site, however this will be impact assessable.
This will ensure no loss of existing land in the Rural and Rural Residential zone to visitor only
and tourist related uses at the expense of permanent residents and all future housing
developments in the Medium and High Density Residential zones are for permanent residents
only.
It is recommended that the Tourist Accommodation zone be reinforced for a range of visitor
accommodation types and tourism related uses, by making multiple dwellings for permanent
residents an inconsistent use in the zone. This will ensure long term provision for tourist
accommodation and related uses, and reduce any future conflict with residents.
A review of the spatial allocation of the Tourism Accommodation zone and Medium and High
Density Residential zone is recommended to ensure the zoning reflects the desired long term
uses within each zone being either for permanent housing for residents or visitor
accommodation and tourism uses.
To ensure future development for small dwellings in business centres is delivered and not
taken up or competing with short term accommodation, it is also recommended that short term
accommodation be an inconsistent use in business centre zones. The exception is in the
Village Mix Precinct at Noosa Shire Business Centre and District Centre zone in Cooroy, where
motel or serviced apartment style accommodation is appropriate to support surrounding uses,
such as in the Innovation zone. Small dwellings for permanent residents would continue to be
permitted in Centre zones, to ensure the provision of permanent dwellings for key workers as
a priority over visitor accommodation.
pg. 6
Noosa Council Monitoring Report 2022/23
Section 8
Purpose of Report
The purpose of this report is to monitor provisions in the Noosa Plan in relation to short term
accommodation, tourism and housing supply in response to the Ministerial conditions imposed
on Council’s adoption of Noosa Plan 2020 (NP2020) on 16 July 2020.
The Minister’s conditional approval requires that:
The council must:
1. Monitor the provisions relating to short-term accommodation, tourism and housing
supply considering the outcomes sought across the residential zones.
The process shall, at a minimum:
include a detailed analysis of the existing situation within the Noosa Shire,
including numbers and types of short-term accommodation uses. This analysis
should include annual comparison data that demonstrates the performance of
the relevant scheme provisions; consider the economic and social benefits of
the current situation, and forecast the potential long-term impacts of short-term
accommodation across the residential zones;
consider the zone intent, levels of assessment and regulation short-term
accommodation across the residential zones;
• consider the state interests of Housing supply and diversity and
Tourism;
• be evidence-driven, comprehensive, and prepared in a detailed
manner.
On commencement of the planning scheme for a period of two years.
2. Submit a report to the Minister on completion of the monitoring process. The report
must detail the findings of the monitoring process and provide an accompanying
statement from the council that identifies whether the council considers an
amendment should be made to the planning scheme as a result of the monitoring
process, and the reasons for the council’s position on this.
Within six months of completing 1.
Noosa Plan 2020 commenced and took effect on 31 July 2020. As required, this report has
been prepared following a two year monitoring process following the implementation of
NP2020, being the period between 31 July 2020 and 31 July 2022. Following endorsement by
Noosa Council at its meeting on xxxxx, this report is submitted to the Minister within the six
month timeframe following the two year review period.
For clarity, references to “Noosa” in this report imply the whole of Noosa Shire.
pg. 7
Noosa Council Monitoring Report 2022/23
Section 9
Report structure
This report contains 5 parts:
Part 1 State Planning Policy
Part 1 of this report identifies the outcomes sought by State planning policies and the
Ministerial conditions around housing supply, diversity and tourism to provide context for this
report.
Part 2– Pre commencement of Noosa Plan 2020
Part 2 provides the baseline of information and data prior to the commencement of Noosa Plan
2020 (NP2020). It examines and provides commentary on the situation during the life of Noosa
Plan 2006, generally between 2006 and July 2020.
Part 2 provides data and analysis on the community profile; housing; the economy,
employment; tourism; tourist accommodation; and relevant provisions within The Noosa Plan
2006 (NP2006) that influenced planning and development outcomes in Noosa.
Part 2 further outlines the provisions in both drafts of NP2020 applying to residential and tourist
accommodation zones, particularly around short-term accommodation and other visitor
accommodation types and the community issues arising from public consultation.
It provides the baseline database of properties being used for short term accommodation prior
to commencement of Noosa Plan 2020.
A number of past studies, plans, strategies and statistics are used to inform this part.
The initial impacts from COVID-19 up to the commencement of NP2020 are also examined.
Part 2 provides the benchmark of information for the purpose of comparison against the
introduction of NP2020.
Part 3 – Post commencement of Noosa Plan 2020
Part 3 examines the impacts of the planning provisions within NP2020 in relation to housing,
tourist accommodation – specifically short-term accommodation, housing, the economy and
tourism.
Part 3 further discusses the housing, economic and employment situation since the
commencement of Noosa Plan 2020 and the impacts arising from Covid-19.
It provides a revised database of properties being used for short term accommodation since
the commencement of Noosa Plan 2020.
It further looks at community wellbeing and issues around short term accommodation on the
community.
Part 4 and 5 – Analysis and Recommendations
Parts 4 and 5 of this report will consolidate and analyse the issues and findings of Parts 1, 2
and 3 of the report to make conclusions and recommendations as to whether NP2020 should
be amended to better achieve the outcomes sought by NP2020 and State Planning Policies.
pg. 8
Noosa Council Monitoring Report 2022/23
Section 10
Part 1 State Planning Policy
The State Planning Policy (SPP) is a key component of Queensland’s planning system. The
SPP expresses the state’s interests in land use planning and development. The SPP sets the
state interests that apply to plan making that should be given effect through the planning
scheme.
The Minister’s conditional approval relevant to this report relates to SPP – State interest for
Planning for Liveable Communities and Housing (Housing supply and diversity) and Planning
for Economic Growth (Tourism). The SPP interests relevant to the Minister’s conditions are
outlined below.
1.1 Planning for liveable communities and housing
For the state interest of Planning for Liveable Communities and Housing, the SPP states in
part:
Liveable communities are well-serviced, accessible and attractive environments that
provide the foundations for a healthy, sustainable and prosperous Queensland…
The SPP divides this state interest into housing supply and diversity and liveable communities
for the purpose of identifying the state interests as outlined below.
1.1.1 Housing Supply and diversity
The SPP states in part that for housing supply and diversity:
Housing across the state needs to cater for different
households and family types, ages, community needs,
lifestyles, and incomes. The state is interested in ensuring
sufficient land and housing stock is available in appropriate
locations to support development, resource and infrastructure-
related projects, and to meet the diverse needs of all sectors in
the community.
Affordable, accessible, innovative and adaptable housing is
required throughout all regions of the state to ensure a range of
housing is available to all sectors of the community, including
Queensland’s ageing population…
The state interests for housing supply and diversity are:
Diverse, accessible and well-serviced housing, and land for housing, is provided and
supports affordable housing outcomes.
1. Land for housing development and redevelopment in areas that are accessible and
well-connected to services, employment and infrastructure are identified.
2. The development of residential land is facilitated to address and cater for all groups
in the current and projected demographic, economic and social profile of the local
government area, including households on low to moderate incomes.
3. A diverse, affordable and comprehensive range of housing options in accessible and
well-serviced locations, is facilitated through:
a. appropriate, responsive and proactive zoning
b. supporting an appropriate mix of lot sizes and dwelling types, including housing
for seniors and people requiring assisted living
c. considering incentives to promote affordable and social housing outcomes,
particularly in areas in close proximity to services and amenities
d. Best practice, innovative, and adaptable housing design and siting is provided
for and encouraged
pg. 9
Noosa Council Monitoring Report 2022/23
Section 11
e. Sufficient land for housing is provided in appropriate locations to support the
projected non-resident workforce population associated with approved largescale
mining, agriculture, industry or infrastructure projects.
1.1.2 Liveable communities
The SPP states in part that for liveable communities:
The liveability of communities concerns all levels of
government as it directly influences our quality of life and
wellbeing. As the population of our cities and towns grow –
and socioeconomic and demographic profiles change – the
importance of attractive, healthy, safe, accessible and
inclusive places and spaces increases. Liveable communities
are those that are vibrant, prosperous, diverse, inclusive,
accessible, attractive, healthy and safe…
The state interests for liveable communities are:
Liveable, well-designed and serviced communities are delivered
to support wellbeing and enhance quality of life.
Built and natural environment:
1. High quality urban design and place making outcomes are facilitated and promote:
a. affordable living and sustainable and complete communities
b. attractive, adaptable, accessible and inclusive built environments
c. personal safety and security
d. functional, accessible, legible and connected spaces
e. community identity through considering local features, character, needs and
aspirations.
2. Vibrant places and spaces, and diverse communities that meet lifestyle needs are
facilitated by:
a. good neighbourhood planning and centre design
b. a mix of land uses that meet the diverse demographic, social, cultural,
economic and lifestyle needs of the community
c. consolidating urban development in and around existing settlements
d. higher density development in accessible and well-serviced locations
e. efficient use of established infrastructure and services
f. supporting a range of formal and informal sporting, recreational and
community activities.
3. Development is designed to:
a. value and nurture local landscape character and the natural environment
b. maintain or enhance important cultural landscapes and areas of high scenic
amenity, including important views and vistas that contribute to natural and
visual amenity
c. maintain or enhance opportunities for public access and use of the natural
environment. Infrastructure and services.
4. Connected pedestrian, cycling and public transport infrastructure networks are
facilitated and provided.
5. Community facilities and services, including education facilities (state and non-state
providers), health facilities, emergency services, arts and cultural infrastructure, and
sport, recreation and cultural facilities are well-located, cost-effective and multi-
functional.
pg. 10
Noosa Council Monitoring Report 2022/23
Section 12
6. Connection to fibre-optic telecommunications infrastructure (e.g. broadband) is
supported in greenfield areas.
7. All development accessed by common private title is provided with appropriate fire
hydrant infrastructure and has unimpeded access for emergency service vehicles to
protect people, property and the environment.
1.2 Planning for economic growth
For the state interest for Economic Growth, the SPP states in part:
Planning plays a critical role in achieving economic growth. It
needs to encourage growth in Queensland’s traditionally
strong primary industries, and construction and tourism
sectors, while also supporting new and emerging sectors to
grow and prosper…
This state interest is divided into a number of key areas, relevant to
the Minister’s condition is tourism.
1.2.1 Tourism
The SPP states in part that for tourism:
Tourism contributes significantly to creating and sustaining jobs, generating export
revenue, and strengthening local and regional economies. The state’s interest in
tourism seeks to support these economic opportunities for local communities, regions
and the state.
Tourism encompasses a diverse range of development types, sizes and locations, and
includes accommodation, attractions, facilities, infrastructure and other ancillary
services. Planning needs to recognise this diversity and be sufficiently flexible to
support tourism, particularly where it can complement other land use and economic
activities. Tourism development can complement and co-exist with other land uses.
Advances in online technology are creating innovative approaches for tourism to co-
exist with different activities (e.g. glamping, bed and breakfasts, farm gate produce
sales and guest lodges). Other opportunities for land uses to co-exist include cheese
tasting or farm-stay activities on an existing dairy farm operation, and ecotourism in a
natural area to promote outdoor recreation or education regarding the area’s
environmental values…
The state interests for tourism are:
Tourism planning and development opportunities that are appropriate and sustainable
are supported, and the social, cultural and natural values underpinning tourism
developments are protected.
1. The findings of state endorsed tourism studies and plans are considered and
reflected where relevant.
2. Existing and potential opportunities, localities or areas appropriate for tourism
development are identified and protected.
3. The delivery of sustainable tourism development is facilitated where it:
a. is complementary to and compatible with other land uses, including sensitive
land uses
b. promotes the protection or enhancement of the character, landscape and
visual amenity, and the economic, social, cultural and environmental values
of the natural and built assets associated with the tourism development.
4. Appropriate infrastructure to support and enable tourism development is planned for.
pg. 11
Noosa Council Monitoring Report 2022/23
Section 13
Part 2 – Pre commencement of Noosa Plan 2020
This part discusses the situation prior to the commencement of NP2020 on 31 July 2020. It
sets the baseline for the purpose of comparison with any changes that have occurred following
the introduction of NP2020 as it relates to housing, short-term accommodation, tourism,
economy and community.
This part will provide:
an overview of the situation in Noosa and emerging issues during the life of Noosa
Plan 2006 up to July 2020;
statistics on the community, economy, employment and tourism;
housing needs and issues identified in the 2017 Housing Needs Assessment;
review of provisions in NP2006 relating to housing, visitor accommodation and
tourism;
tourist accommodation needs and issues identified in 2017 Housing Needs
Assessment;
the extent and type of tourist accommodation as at April 2020;
findings and issues considered in the preparation of Noosa Plan 2020;
provisions within the draft versions of NP2020 and community consultation issues;
initial impacts from COVID 19 up to July 2020.
2.1 Noosa Overview 2006 - July 2020
Prior to and during the period between 2006 and the introduction of Noosa Plan 2020, Noosa
Shire experienced a great deal of change.
Noosa’s mild subtropical weather, outstanding landscape and rural hinterland backdrop to
Noosa River, Noosa Main Beach and the eastern beaches, positioned itself as a desirable
place to live, work and visit.
Noosa steadily grew from a series of small coastal and hinterland villages, productive rural
land and location for holidays, to a substantial resident community attracting primarily families
and retirees to a number of lifestyle opportunities.
With a growing population came increased demands for development and a range of housing
types, infrastructure, services and facilities, placing pressure on the environment.
During the preparation of Noosa Plan 2006 (NP2006) the community was very engaged with
the environment where a “population cap” or carrying capacity was identified to ensure Noosa
developed in a sustainable way.
The “Noosa style” was also established to ensure development sat lightly in a landscape
setting and became a guiding tool for new development. The Noosa style excluded big city
symbols such as traffic lights, large or neon signage and high rises and became a key part of
the distinct Noosa brand and lifestyle for both residents and visitors. Some of these low key,
low density elements were later encapsulated in the iconic values of Noosa provided for by
the Iconic Queensland Places Act 2008.
In 2007 the community was heavily involved in the designation of Noosa Shire as a Biosphere
Reserve under the United Nations Education, Scientific and Cultural Organisation (UNESCO)
and Man and the Biosphere program.
Around the introduction of NP2006, the urban area of Noosa experienced significant change
with a number of key development and infrastructure projects occurring including the
construction of Eenie Creek Road, Walter Hay Drive, Noosa Civic at the Shire Business
Centre, Noosaville industrial estate extension and a number of residential housing and tourist
accommodation projects.
Most of Noosa’s unit and townhouse developments were already established prior to NP2006
and contained a mix of both visitors and permanent residents. Remaining vacant urban
pg. 12
Noosa Council Monitoring Report 2022/23
Section 14
residential land was substantially taken up during the life of NP2006, particularly land for
detached housing.
To support the resident population, a new Catholic high school was established, the Giraween
sports fields and Cooroy Library constructed and two new supermarkets were established in
Noosaville and Tewantin. Additional development at the Shire Business Centre included a full
line supermarket, discount department store, multiple specialty shops, bulky goods retail
showrooms and office floor space.
Tourism was Noosa’s key economic driver attracting a high volume of staying visitors and day
trippers. Tourism bodies sought to attract the high end, longer stay market, gaining Noosa
national and international recognition as a premium destination in Australia.
Whilst tourism was a key economic driver, the diversification of the economy into high value
low impact industries was also desirable. A purpose-built digital hub at Peregian Beach was
constructed for new and emerging technology companies and entrepreneurs, and a large
parcel of land was set aside at the Shire Business Centre for future research and development
industry.
A range of visitor accommodation options spread throughout the urban area, and coupled with
the drive market and day trippers, added considerably to Noosa’s population, increasing traffic
load and pressures on key locations such as Noosa River, Hastings Street and Noosa National
Park, particularly during holiday periods, events and weekends.
Significant tourist accommodation sites were developed including what is now Peppers Resort,
Noosa North Shore Beach Houses and the RACV resort.
In the early stages of NP2006 operation, holiday homes and short stay let houses were
scattered mostly in locations close to Noosa River and beaches and generally not of concern.
Bed and breakfast style accommodation was initially only supported in the hinterland as the
coastal areas were considered to have ample visitor accommodation. During the later stages
of NP2006 home hosted accommodation styles of accommodation were also supported in the
coastal area.
Growth in the digital economy, share economy and how people offer and exchange goods and
services, including accommodation, and where and how people work, was significant during
the life of NP2006.
From 2012 onwards, online booking platforms, (such as Airbnb) saw a progressive growth in
the provision of home hosted accommodation and permanent residential dwellings being used
entirely for short-term accommodation. The lack of 5 star hotel accommodation in Noosa
fueled the demand for high end housing to be used as holiday accommodation which spread
initially from waterfront properties, into residential neighbourhoods. The use of dwellings for
home hosted accommodation also increased, without planning approval, as did the use of
secondary dwellings for short-term accommodation.
Fiscal policy supported the choice of real estate as an investment which was negatively
geared, fueling an investor market in permanent housing and short-term accommodation.
Holiday homes funded by short-term guests when not in use by the owner, increased and
coincided with a noticeable increase in local furniture, manchester and homeware retail
offerings, as well as interior design and styling services. It also saw an increased demand for
property maintenance and management businesses including landscaping and cleaning
services.
Housing prices significantly grew over the life of NP2006 leading to one of the strongest and
most expensive markets in Queensland, with demand, particularly for affordable rental
properties, often outstripping supply.
Shortfalls in the unit and small dwelling market saw the occupation of resort style complexes
by permanent residents. This was a key issue for onsite managers and the visitor
pg. 13
Noosa Council Monitoring Report 2022/23
Section 15
accommodation market, potentially threatening the viability of tourist accommodation,
functions and conferencing venues.
Towards the end of NP2006 operation, issues emerged in the community regarding the
increased use of dwellings for short-term accommodation, particularly dwelling houses, and
the spread into residential neighbourhoods. A significant land use planning issue emerged
regarding the ability for a detached house to be used for short-term accommodation without
further planning approval, resulting in community discussions as to where and if dwelling
houses and multiple dwellings should be used for short-term accommodation.
Whilst NP2006 encouraged and recognised the importance and benefits of tourism, it did not
envisage the explosion and spread of unregulated and unmanaged short-term accommodation
and home hosting in traditional residential areas, nor the potential impacts on residential
amenity, sense of community, housing supply and affordability.
By the end of NP2006’s operation, the range of impacts arising from short-term
accommodation and concerns around affordable housing for residents and key workers in
particular, were the biggest community issues. This was made evidently clear throughout the
preparation and consultation of the Draft NP2020 which is discussed in section 2.8 of this
report.
2.2 Community profile – 2001-2021
Statistics in this section include the periods between 2001 and 2021, covering the time Noosa
Plan 2006 was in operation and the first 2 years of Noosa Plan 2020. The statistics are
therefore relevant to the discussion in both Parts 2 and 3 of this report.
Between 2001-2021 Noosa’s population growth rate averaged 1.3% per year, a product of
limited land supply and expansion opportunities. During this period, the community aged, with
an increased proportion of people over 65 with the percentage of people in the 25-44 year age
group significantly decreasing. Households comprising couples with children remained steady
and couple only and lone households increased.
2.2.1 Population growth
From 2001 to 2021 Noosa’s estimated resident population grew from 43,496 to 56,873, an
overall average annual growth rate of 1.3%.
Table 1 Estimated Resident Population Noosa Shire
The graph below shows higher growth rates during the 2012-2013 and 2016-2018 time
periods. There was also a growth spike during the 2019-2020 year then slump the following
year.
pg. 14
Noosa Council Monitoring Report 2022/23
Section 16
Table 2 Estimated Resident Population growth Noosa Shire
2.2.2 Age structure
During the 2001-2020 time period, the share of persons aged 65 years and over increased
from 14.9% to 26.3 %, representing an annual growth rate of 4.5%. A corresponding decrease
occurred in the 0-14 aged group from 19.9% of the population in 2001 down to 15.6% in 2020.
There was a significant drop in the 25-44 age group down from 27.3% in 2001 to 17.7% in
2020. This age group experienced a drop in real numbers, not just as a proportion of the
resident population.
Table 3 Estimated Resident Population by Age Noosa Shire
Between 2001 and 2020 the median age increased by 9 years from 40.5 years to 49.5 years.
At the 2021 census it was 50.
Table 4 Median Age Noosa Shire
pg. 15
Noosa Council Monitoring Report 2022/23
Section 17
2.2.3 Household composition
Couple only households increased between 2006 and 2021 from 27.9 % to 34%, as did lone
person households from 19.6% to 26.9%. There was a slight increase in households
comprising couples with children during this time from 21.7% to 23% of households.
Table 5 Household Composition Noosa Shire
Household composition Census year Total Change
2006 2011 2016 2021 2011-2021
number % number % number % number % number %
Couple only 5,966 27.9 6,498 31.3 7,059 31.9 7,994 33.7 2,028 34.0
Couple with children 4,635 21.7 4,858 23.4 5,050 22.8 5,460 23.0 825 17.8
One parent family 2,045 9.6 2,191 10.6 2,202 10.0 2,140 9.0 95 4.6
Other family 126 0.6 121 0.6 122 0.6 122 0.5 -4 -3.2
Lone person 4,200 19.6 4,666 22.5 4,954 22.4 5,328 22.4 1,128 26.9
Group 714 3.3 795 3.8 769 3.5 799 3.4 85 11.9
Other (including visitor only 3,702 17.3 1,596 7.7 1,965 8.9 1,912 8.0 -1,790 -48.4
and non-classifiable
households)
Total 21,391 100.0 20,738 100.0 22,110 100.0 23,755 100.0 2,364 11.1
At the 2021 Census the average household size was 2.4 persons with 14,610 households
(accounting for 66.87% of occupied private dwellings) consisting of just one or two people.
2.3 Housing market- Housing Needs Assessment 2017
During 2016-2017 a Housing Needs Assessment Report was prepared by Briggs and Mortar
Pty Ltd to understand the housing situation and future housing needs in Noosa Shire up to
2036 to inform the preparation of NP2020. The report was finalised in 2017, using 2011 census
data.
The Housing Needs Assessment 2017 (HNA2017) stated its aims were to:
provide a clear understanding of Noosa Shire’s current housing situation and trends
and project housing needs into the future including those for specific groups (e.g. older
people);
review competing interests between permanent residents and short-term visitors for
housing stock;
inform policy aimed at addressing housing needs shortages and improving housing
choice within the Shire.
Notably, the provision of visitor / tourist accommodation was considered part of meeting the
overall “housing needs” for Noosa Shire with the HNA2017 identifying the housing needs of
both residents and visitors / tourists to 2036.
pg. 16
Noosa Council Monitoring Report 2022/23
Section 18
As expected, the competing interests for housing stock between permanent residents and
visitors / tourists was identified as a key issue, as was the variability of the dwelling stock
moving interchangeably between visitor accommodation and permanent resident
accommodation.
At the time the HNA2017 was prepared, the rise of short-term accommodation in residential
areas and its implications on residential amenity, housing stock and affordability was only
starting to be appreciated, as was the community sentiment around short-term
accommodation impacts. The uncertainty around maintaining and securing long term housing
stock, as well as tourist accommodation, whilst recognised and a complex issue, was also not
fully appreciated.
The competition for existing and limited future dwelling stock created a level of uncertainty
around providing adequate housing to meet current and future resident needs and resulted in
some competing discussions in the HNA2017 on how the accommodation needs of both
visitors and residents could be met.
Below is an extract summary of the key findings of the Housing Needs Assessment Report
2017 as it related to housing for residents. Tourist / visitor accommodation needs arising from
the HNA2017 are addressed in section 2.5.
2.3.1 Housing in the Noosa Context
The Housing Needs Assessment (HNA2017) was considered within the Noosa context, its
existing housing stock, household composition, unique environmental setting, historical
development and desirability both as a place to live and visit. The HNA2017 identified this
context as:
Noosa Shire is a very desirable place to live with a low level of population growth,
and as such, housing availability is limited and some members of the community
struggle to find housing suitable to their needs and circumstances.
Housing stock is noticeably dominated by detached houses and semi-attached or
attached housing of at least three bedrooms which appears somewhat
incongruous given a majority of households are made up of just one or two people.
However the free market system has meant that historically, subdivided lots and
dwellings have been built to meet a market that the developer believes will offer
the most dollar return. Dwellings are also built with resale in mind and four
bedrooms and two garages has been the preferred norm for houses. While in
earlier years two-bedroom units were quite common, three bedrooms have
undoubtedly become the standard.
Noosa Shire has a desirable environmental setting and the built form and business
offerings have been of a high standard compared to many other coastal
settlements. It should come as no surprise then that land and property commands
a higher price than many other places and thereby attracts many well-resourced
residents. Investors who purchase dwellings also impact on purchase price
through added competition with potential resident-owners. The investor then seeks
the highest and best rental return whether by resident or visitor.
It is important to view these factors within the historic development and planning
of Noosa Shire. This was based on a population concept which identified a
development carrying capacity and a clear plan for future growth was adopted in
accordance with that. It has not been the case of development at all costs.
However maintaining good planning standards with a defined
population/development capacity was always ultimately going to lead to higher
priced real estate.
Quality of development was preferred to quantity and at times it was a case of ‘less
is more’. Market conditions have favoured the affluent in coastal and prime
pg. 17
Noosa Council Monitoring Report 2022/23
Section 19
locations at Noosa Heads and Noosaville. The consequence has been ‘large’ and
at times extraordinary dwellings. Development was expected to comply. Bonus
provisions or incentives have never featured.
Development that fitted with the planning scheme was approved promptly…
Lifestyle of residents has been placed ahead of the needs of tourists, based on the
principle that if things were done well for the residents the visitors will come.
Council genuinely saw Noosa Shire as a community of communities – the
hinterland is different to Tewantin which is different to the coastal parts, plus Noosa
North Shore and Boreen Point, etc. This led to different planning and different
outcomes expected.
Intervention in the housing market will require consideration of the desirability of
increased focus on outcomes of social equity and inclusiveness, including
stimulating housing diversity.
2.3.2 Housing characteristics
Noosa’s population was identified as older with an average household size being small and
made up of lone or couple households, however the available housing stock was mostly large
made up of 3-4 bedroom detached houses.
The HNA2017 summarised the housing characteristics using the latest available census data
(2011) at the time it was prepared, as:
Noosa Shire’s housing appears not well suited to its demographic profile. Its housing profile is
not dissimilar to Queensland, but its population is very different:
Average household size in Noosa Shire is low and decreasing;
The population is older than South East Queensland and the State, and is ageing
rapidly;
Median household income is lower than South East Queensland and the State.
Given this population profile and compared to other tourism-oriented local government areas,
the HNA2017 identified:
There is a high proportion of detached houses, relative to other comparative tourism-
oriented LGAs:
Some 24% of all occupied dwellings in Noosa Shire are usually occupied by one person
living alone, and 58.4% by a person living alone or a couple;
The highest proportion of two person households live in 3-bedroom dwellings, with the
second highest proportion in 4-bedroom dwellings;
A significant proportion of small households are living in large dwellings. It is however
noted that particularly in an affluent community, a proportion of households may
choose to live in larger dwellings than seemingly required, or this may occur by
circumstance;
Housing stress is high in Noosa Shire relative to Brisbane or Queensland, but similar
to comparative LGAs:
o At 34.5%, the proportion of low income households that are renting and
experiencing rental stress is higher than other comparative LGAs (except for
Fraser Coast), and higher than Brisbane and Queensland;
o 15.8% of low income households that are paying a mortgage were experiencing
mortgage stress, similar to the other comparative LGAs, but significantly higher
than Brisbane or Queensland;
pg. 18
Noosa Council Monitoring Report 2022/23
Section 20
o Low income households experiencing either rental stress or mortgage stress
made up around 16% of all households in other comparative LGAs in 2011, but
this was a significantly higher proportion than for Brisbane with 11.3% or
Queensland with 12%.
Noosa Shire appears less affordable than all comparative LGAs, Brisbane City and
Queensland:
o Accommodation affordability is impacted by both low median incomes and high
median accommodation costs;
o Median rents for flats/ units in the Shire are fairly similar to the State but rents
for houses are higher than the State;
o There has been a declining trend in rental vacancy rates over the last five years
from around 4-5% to around 1-2%;
o The median dwelling sale price in Noosa Shire has remained higher than the
State at all times between 1998 and 2015;
o In 2011 median household income was almost $200 below the SEQ Region
and almost $300 below the State per week.
o Between 5-10 additional percentage points of income are needed in Noosa
Shire to afford a dwelling compared to the next most unaffordable comparative
LGA considered (which for most indicators was the Gold Coast).
2.3.3 Housing supply and diversity
Around three quarters of Noosa’s 25,272 dwelling stock were separate detached houses
comprising 3-4 bedrooms. The HNA2017 identified the following dwelling stock and dwelling
types in Noosa Shire, notably based on 2011 census data.
Of the 25,272 private dwellings in Noosa Shire in 2011, 18,828 were detached or
separate houses (74.5%), 2,489 were semi-detached (9.8%), 3,328 were attached
(13.2%) and 618 were other dwelling types (2.4%). … below summarises the numbers
and proportions of the different dwelling types for both unoccupied and occupied
dwellings as well as dwellings occupied by residents and visitors/tourists.
Larger proportions of unoccupied dwellings and dwellings occupied only by visitors are
attached dwellings, compared to dwellings occupied by residents. Around 24% of
unoccupied dwellings and 28% of dwellings occupied only by visitors were attached
dwellings, compared with just 9.4% of dwellings occupied by residents being attached.
Notably, of the 25,272 dwelling, 4559 were unoccupied comprising 18% of the total dwelling
stock and an additional 1,602 dwellings were identified as being occupied as visitors. Overall,
24.3% of private dwellings were either unoccupied or occupied by visitors as show in Table 6
in Appendix 2.
In terms of dwelling type, detached separate houses dominated the housing stock with under
20% comprising dwellings semi-attached or attached dwellings as show in Table 7 in Appendix
2. The HNA2017 stated:
Most common Census indicators consider only dwellings occupied by residents on Census
night. If only dwellings occupied by residents on Census night are included, Noosa Shire
reported a similar dwelling structure to the SEQ Region and Queensland, with 79.5% of private
occupied dwellings being separate houses, compared to 76.1% for the SEQ Region and 78.5%
for Queensland.
pg. 19
Noosa Council Monitoring Report 2022/23
Section 21
2.3.4 Housing Tenure
Noosa had a higher than average rate of outright home ownership than the rest of Queensland
as shown in Table 8 in Appendix 2. The HNA 2017 identified the tenure composition in Noosa
Shire, stating:
Noosa Shire had a considerably higher proportion of dwellings owned outright (37.0%)
when compared to the SEQ Region (29.0%) and the State (29.7%). Fewer people were
paying off a mortgage (32.0%) compared to the SEQ Region (36.6%) and the State
(35.4%). Dwellings in Noosa were less likely to be rented (29.5%) compared to the
SEQ Region (33.5%) and the State (34.0%).
2.3.5 Rental Stock - Bonds held by RTA 2011-2016
4,378 rental bonds were held by the Rental Tenancies Authority (RTA) in the June
Quarter in 2016. The graphs are shown as Figures 1 – 2 in Appendix 2. Overall, the
number of rental bonds slowly decreased between 2011 and 2016.
The number of total bonds held by the RTA had slowly increased to a peak of around
4,800 bonds in March 2013 (from 4,460 in March 2011), but have generally decreased
slowly since that time.
Showing a similar trend, the numbers of new bonds lodged per quarter slowly declined since
2011 for the main dwelling types. The number of new bonds lodged per quarter for two
bedroom flats, three bedroom houses, and four bedroom houses slowly declined.
The highest number of rental bonds held in June 2016 were for three bedroom houses,
followed by four bedroom houses. Two bedroom flats were the next most frequent type of
rental property.
2.3.5.1 Median Rents by Housing Type
Median rents for all dwelling types steadily rose between 2001 to 2014, more than doubling in
that time frame for both flats / units and houses. From 2014-2016 rents continued to trend
upwards as shown in Figure 3 in Appendix 2. The HNA2017 stated:
More recent data from the Residential Tenancies Authority (RTA) (2016) shows that
median rents for most dwelling types have continued to trend upwards in the last two
and a half years. The most commonly rented dwellings are two bedroom flats, three
bedroom houses and four bedroom houses. …
Noosaville (including Munna Point) and Noosa Heads and Southern Coast had the
highest median rents for all of the dwelling types.
2.3.5.2 Rental Vacancy Rates
Between 2010 and 2016 the HNA2017 identified rental vacancy rates in Noosa as
progressively trending down from 4-5% in 2010 to around 1-2 % in 2016 as shown in Figure 4
in Appendix 2.
2.3.6 Dwellings Sales Data
Dwelling sales data in the HNA2017 between 1998 and 2015, stated Noosa remained higher
that the state median dwelling sales price as shown in Figure 5 in Appendix 2. The HNA2017
stated:
The median dwelling sale price in Noosa Shire rose by an estimated annual average
rate of 1.8% between 2005 and 2015. This is slightly lower than the State where the
pg. 20
Noosa Council Monitoring Report 2022/23
Section 22
median dwelling price was estimated to have grown by 3.9% annually on average over
the same period.
The median dwelling sale price in Noosa Shire has remained higher than the State at
all times between 1998 and 2015. In 2015, the median dwelling sale price in Noosa
Shire was $516,500 while in the State it was $430,500.
2.3.7 Housing issues
The HNA2017 identified a number of key housing issues for Noosa Shire:
housing affordability, especially for low income households and key workers;
a lack of accessible or adaptable housing for older people and people with special
needs;
a mismatch of housing size and household size (albeit some may be by choice or
circumstance);
a shortage of affordable and appropriate aged accommodation;
a lack of housing diversity, and particularly smaller dwellings;
low levels of social and emergency housing;
conflict between resident and visitor accommodation.
2.3.8 Housing needs 2036
The HNA2017 identified a number of resident groups in the community with specific housing
needs:
Older people
People with a disability
Low income families and young people
Key workers
People at risk of homelessness
People escaping domestic violence
Tourists and visitors were also identified as a group requiring specific housing needs. This is
addressed separately in section 2.5.
To meet future resident household needs to 2036, the HNA2017 identified the following
housing being required:
only a small increase in detached houses may be required, other than by replacement
of existing older dwellings;
the small increase in detached housing would desirably be mostly by small, not large
dwellings (this includes those in retirement villages and manufactured home parks, and
innovative dwelling design and materials) and the remaining subdivision lot size should
reflect the need for small dwellings;
there was a further need for semi-detached dwellings, mainly small, but also three or
more bedroom to provide additional housing choice; and
there was a significant need for small attached dwellings (one to two bedroom) to offer
additional housing options for a growing number of small households.
2.3.9 Challenges and opportunities
To meet resident housing needs a number of challenges and opportunities were identified. Of
particular note, was the competition for housing stock between residents and visitors and
recognition that if tourism demand continued at past levels into the future, there would be
substantial impact on housing for residents, both in terms of availability and affordability. The
HNA2017 noted that growth in tourism should be sustainable and it was important to make the
pg. 21
Noosa Council Monitoring Report 2022/23
Section 23
best use of limited supply to meet housing needs, noting that achieving a balance of tourist
and residential housing needs will be a challenge for the planning scheme.
The HNA2017 identified the following challenges and opportunities:
Meeting the housing needs of residents in the light of competing demand for
tourist accommodation
The overall conclusion of the assessment is that tourism demand, if it were to continue
at its current level over the last decade, could have a substantial impact on the
availability and affordability of resident housing. Considering tourism needs is a critical
component of ensuring adequate and appropriate housing for residents – and vice
versa.
However, it will be important that the limits of tourist accommodation sustainability in
Noosa Shire are recognised, while encouraging the future growth of the tourism
industry in more sustainable ways. This is in line with the policies of the Local Economic
Plan, which looks beyond tourism-driven economic growth and employment, towards
a more resilient and diversified economy. Achieving an appropriate balance of tourist
and resident housing needs will be a challenge for the new Planning Scheme.
Making optimal use of remaining land through smaller lot sizes and minimum
density requirements for attached dwellings in some locations
The availability of land within the Noosa Shire urban footprint/ town boundaries and its
implications for the affordability of housing emphasises the importance of making the
best use of remaining land to meet housing needs, particularly in terms of reducing the
imbalance between small and large dwellings relative to the high number of small
households in Noosa Shire, and also providing housing choice for the many different
groups in the community.
The New Noosa Plan will need to consider bold options for an increase in housing
choice within the existing urban areas by providing smaller lots and minimum dwelling
densities in appropriate locations.
Considering new built form controls and any appropriate incentives to achieve
objectives, while preserving the integrity of the Noosa Plan.
…Further consideration of built form controls and investigation of possible appropriate
incentives, including parking requirements, density and infrastructure charges, is
required. ..
Exploring new and innovative solutions, some of which may be challenging to
accept
There will be a need to think outside the square in the future if housing needs are to be
met. Some of these initiatives may be challenging in terms of accepting new or
innovative housing models or styles. A further challenge will be flexibility in planning
provisions to facilitate such applications as far as possible. It may be necessary to allow
some licence for innovation provided it meets key principles of design, function and the
inherent benefits of the model.
Considering other ways to pursue housing objectives
... A particular issue is the difficulty of providing social housing in Noosa Shire due
largely to the cost of land. Council may choose to investigate other ways to assist the
community housing sector to meet social and housing affordability needs…
2.3.10 Meeting future housing needs
The HNA2017 identified two key ways to meet housing needs – through the take up of
secondary dwelling provisions and new stock (infill / greenfield development), noting that the
pg. 22
Noosa Council Monitoring Report 2022/23
Section 24
HNA2017 also allocated a portion of secondary dwellings to be used as visitor accommodation
by tourists and that new stock included the movement of permanent residents out of resorts.
It should be noted however, that despite the views of the HNA2017 author and Council of the
day, the use of secondary dwellings for other than members of the household of the main
dwelling was not supported by the State Government and under the interpretation of secondary
dwelling defined in the Planning Regulation 2017. The HNA2017 stated:
Additional secondary dwellings may help to meet the dwelling needs of the future
Noosa Shire population…
Removing the requirement for occupants to be related to each other … may increase
the supply of this form of development and increase the supply of affordable dwellings
in the Shire...
A recent analysis by Noosa Shire Council found that some 18,231 lots in the Shire
were within the detached housing, rural settlement and rural zones and of a size that
may support a secondary dwelling. A proportion of these lots may be suitable for
accommodating a secondary dwelling.
…The low take-up scenario assumes that during the time period 2016-2036, 10% of
these lots are used to provide additional secondary dwelling for residents, and 10% for
tourists in the urban areas of the Shire. In the rural areas, it was assumed that 3% of
these lots may be used to provide additional secondary dwellings for residents.
…It is considered that the low take-up scenario may be more realistic than the high
take-up scenario, and under current provisions even the low take-up scenario may not
be reached.
… Although secondary dwellings may be classified as attached dwellings under the
census definitions they are considered to meet the needs of resident households for
both small semi-detached and small attached dwellings ….
Hence new stock would be required to fill the remaining need for resident dwellings. Of
the 1,351 new dwellings required to meet assumed resident household needs between
2016 and 2036, the modelling suggests this would desirably include:
24% detached houses;
36% semi-detached dwellings, the majority small, but some 3+ bedrooms;
32% small attached dwellings and 42 (3%) large attached dwellings; and
4% of dwellings of other types (cabin, caravans, dwelling attached to shop etc).
2.3 Economy and employment 2001 – June 2020
Tourism, including accommodation and hospitality related industries were, and continue to be,
a key economic driver and employment sector in Noosa, together with healthcare and social
services, construction and retail trade.
The healthcare and social services sector in particular, grew between 2001 and 2016.
Between 2001 and 2020 Noosa’s gross regional product continued to grow and almost
doubled at its peak in 2019.
The early stages of COVID-19 from March – Jun 2020 saw some impacts on the economy and
job losses in the hospitality and tourism sectors in particular. Despite these impacts, Noosa’s
tourism industry, visitor numbers and visitor spend faired comparatively well compared to the
Queensland and Australian average. Refer to section 2.9 for further information regarding the
initial early impacts of COVID-19.
pg. 23
Noosa Council Monitoring Report 2022/23
Section 25
2.4.1 Local Economic Plan 2015
Noosa Council’s 2015 Local Economic Plan (LEP) sought to broaden the economic structure
of Noosa’s economy by growing the “smart” industry sectors that offers high economic value
and low environmental impact. The attraction and retention of skilled and talented people and
the development of collaborative alliance and conditions was identified as fundamental to
achieving this goal. The LEP identified the key theme to achieve this as:
industry diversification;
effective land use planning;
enterprise support;
essential infrastructure;
skilled and connected businesses and implementation; and
monitoring and reporting.
Priority industry sectors of competitive advantage identified to support economic growth were:
healthcare and wellness;
digital economy;
environmental industries;
rural enterprise;
creative industries; and
professional services.
2.4.2 Gross regional product June 2020
.id Community Demographic Resources data showed Noosa’s gross regional product was at
an all-time high in the year ending June 2019 at $3.043 billion, down to $2.988 billion by the
end of June 2020, following the initial impacts from COVID-19. The healthcare and social
assistance sector was the most value added industry, as shown in Figure 6 in Appendix 3.
2.4.3.1 Employment by industry
.id Community Demographic Resources data showed that between the 2006/2007 year and
the 2019/2020 year the proportion of jobs in accommodation and food services rose from
13.5% to 14.5% and healthcare and social assistance significantly rose from 9.9% to 14%.
Professional, scientific and technical services also increased from 5.7% to 7.2%. Significantly,
retail trade was down from 16.3 % to 12.5% as was construction from 13.2% to 11.9% as
shown in Table 9 in Appendix 3.
2.4.3.2 Employment by occupation
.id Community Demographic Resources data showed that between 2011 and 2016 the share
of people employed in a professional or managerial occupation slightly decreased. Community
and personal service workers increased from 12.6% to 13.9%.
Slight increases were also seen in technicians and trade workers up from 14.2% to 14.6% and
labourers up from 9.9% to 10.4% as shown in Table 10 and Figure 7 in Appendix 3.
2.4.3.3 Number of jobs
.id Community Demographic Resources data showed the total number of local jobs steadily
rose from the December 2018 quarter to peak at the December 2019 quarter to 25,056
decreasing to 22,417 by the June 2020 quarter following the initial impacts from COVID-19,
as shown in Figure 8 in Appendix 3.
2.4.4 Businesses by industry
.id Community Demographic Resources data showed the greatest share of registered
businesses in Noosa in 2020 was within the construction (18.7%), rental, hiring and real estate
pg. 24
Noosa Council Monitoring Report 2022/23
Section 26
services (15.9%) and professional, scientific and technical services industries (13.4%) as
shown in Table 11 in Appendix 3.
2.4.5 Tourism sector
In the 2005/06 year total tourism sales in Noosa Shire was $416.31m and the total value added
was $231.13 million according the .id Community Demographic Resources, increasing to
$463.67 million total tourism sales and $266.97 million value added in the 2019/20 year.
2.4.5.1 Visitor nights
There were 3,582,686 domestic visitor nights and 698,151 international visitor nights in Noosa
Shire, with an additional 1,060,901 domestic day trips for the 2019/2020 year. This was down
from the 2018/2019 year of 3,950,072, 976,2017 and 1,288,879 respectively, a result of
COVID-19 restrictions commencing from March 2020.
For the 2019/20 year, .id Resources Demographic identified domestic visitor nights
represented 67.1% of total visitors, international visitor nights represented 13.1% and
domestic day trips represented 19.9% of visitors to Noosa Shire, as shown in Figure 9 in
Appendix 3.
The main reason for domestic and international overnight stays was for the purpose of
holidaying and then to a lesser extent visiting friends and relatives, as shown in Figure 10 in
Appendix 3.
2.4.5.2 Visitor spend
The 2019-2020 Tourism Noosa Annual Report identified the Noosa Region had achieved
record-breaking visitation and spend for the first three quarters of the 2019-2020 financial year
with almost $1.2 billion in total annual spend from domestic and international overnight visitors
and day-trippers as shown in Figure 11. Before the full impact of COVID-19 and associated
travel restrictions were truly experienced, there was a record spend for March 2020.
Figure 11 Annual increase in visitor spend in Noosa, Year ending March 2020
Source: Tourism Noosa Annual Report 2019/2020
pg. 25
Noosa Council Monitoring Report 2022/23
Section 27
2.4.5.3 Employment in tourism and hospitality sector
.id Community Demographic Resources data showed that in 2016, there were 2,811 people
who made up the tourism and hospitality workforce in Noosa Shire Council area, of this 45.3%
worked full-time and 54.7% worked part-time or were away from work as shown in Table 12 in
Appendix 3.
2.4.5.4 The Value of Tourism to the Noosa Community October 2019 - Survey
In July 2018, Tourism Noosa, in conjunction with Noosa Council, commissioned a report on
the value and impact of tourism on the Noosa Community prepared by C Change Sustainable
Solutions and SGS Economics and Planning (Value of Tourism Report). The report was
commissioned to provide input into the community, council and business deliberations on
sustainable tourism and what that meant for Noosa.
With the exception of the economic value of tourism, the Value of Tourism Report noted the
study was focussed on resident, business and visitor perceptions of impacts through a survey
as opposed to actual impacts. The extracts in this section relate to resident, visitor and
business views of tourism. The overall key findings of the report concluded that:
tourism is Noosa’s number one industry sector and has important flow on impacts
across the Shire;
events in Noosa had a positive impact on the majority of businesses surveyed that are
most likely to be impacted by tourism.
tourism and events contribute to the social and cultural environment of Noosa in a
significantly positive way.
tourism is generally sensitive to the environment, but there is room for improvement.
Tourism does have unintended negative consequences in Noosa, but the impact on
the community and individuals for most of these elements is relatively low.
Table 13 in Appendix 4 outlines the potential economic, social and environmental beneficial
impacts and potential negative impacts associated with tourism outlined in the report. Of
particular note, a number of negative impacts associated with tourism were also identified for
housing and affordability, employment, casualisation of the workforce, dependency on tourism
jobs and a vulnerable economy, infrastructure impacts, population increases and congestion,
erosion of local identity, threats to natural resources and local impacts associated with noise
and litter.
Resident views of tourism
The Value of Tourism Report identified the views of residents on tourism in more detail. Of
particular note was that despite most respondents indicating tourism as being good for the
community and economy, over 84% agreed it can disrupt the lives of residents in relation to
traffic, parking and restricted access to public facilities and over 80% indicated it impacted
property values and the cost of goods and services. The report stated the following findings
with relevant supporting graphs identified as Figures 11, 12 and 13 in Appendix 4 of this report.
Of the 300 responding, nearly 80% of all respondents indicated that they either strongly
approved (36%) or slightly approve (43%) of tourism because it’s good for the
community and economy. People aged between 30 -64 were more likely to strongly
approve, and people aged up to 30 or over 65 were more likely to slightly approve.
Only 4% of total respondents strongly disapproved of tourism in Noosa.
… of the 300 respondents indicated that they were happy with tourism growth and
would like to see it continue and/or grow – either as it is (27%) or in a different direction,
such as environmentally responsive (23%)…. Of the remaining 50%, 42% indicated
that they were happy with how tourism had grown to date, but did not want to see an
increase. Only 8% indicated they would like to see less growth…
Most respondents (over 84%) agreed that tourism can disrupt the lives of locals,
particularly in relation to traffic, congestion and parking and restricting local’s access
pg. 26
Noosa Council Monitoring Report 2022/23
Section 28
to public facilities. The impacts individuals felt and their perceptions of the impact of
the community as a whole associated with tourism were somewhat negative…
In addition, respondents noted that other disruptions from tourism can include
increasing property values and the price of goods and services (around 80%), and
impacting the environment through litter, pollution and/or natural damage to area
(75%). Respondents noted that, on average, the individual impact of these impacts
were not large, but that there were somewhat negative impacts for the environment
from a community perspective…
Around 63% of respondents felt that the character of the region had changed, but the
impact on individuals and their perception to the community as a whole was negligible.
Less than half the respondents felt that tourism was associated with people behaving
inappropriately, and less than a third of respondents felt that too much public money
was spent on developing facilities for tourists that should otherwise go to local public
facilities and services.
With regard to other demographic and locational characteristics, people who lived in
Tewantin and the Hinterland felt that there were more negative impacts on property
values and the cost of goods and services when compared with their coastal
counterparts.
Table 14 in Appendix 4 outlines the general positive and negative comments about tourism
from residents identified in the report.
Business views on tourism
The Value of Tourism Report identified the views on tourism from business in more detail. The
report and Figure 14 in Appendix 4 had the following findings:
Businesses that are likely to have a direct impact from tourism indicated that their
turnover from interstate was likely to be twice as large as those businesses that have
an indirect impact from tourism… with over 75 percent indicating that they would be
less profitable without tourists – and of these, 42 percent indicated that they would
cease operations without tourists.
The Value of Tourism Report survey of businesses highlighted some interesting matters
around staff, particularly around securing affordable housing, of which 55% of businesses
offering an opinion on the matter identifying it was an issue with concerns around affordability
and supply, and relativity to low wages. Suggestions were also made on how to tackle the
issues below:
… Of those who felt there were issues associated with obtaining affordable housing in
Noosa, general comments indicated the following:
Housing and accommodation is expensive generally, and there is a shortage of
options, particularly in coastal areas.
Many staff live outside Noosa because of affordability issues. Due to this, people need
to travel further to work and must have cars due to affordability issues. This increases
parking issues, and parking is difficult.
Affordability issues are exacerbated because of the low wages in the service sectors.
Young people find it difficult to remain living in Noosa due to affordability as do working
families.
Some people offered suggestions regarding the needs for staff housing. This included
supporting:
pg. 27
Noosa Council Monitoring Report 2022/23
Section 29
o The development of affordable apartments in the activity centres. This would
support housing options as well as provide businesses with additional
custom/trade.
o The development of more one bedroom and studio apartments specifically
targeted to local service staff.
o Targeting certain areas that would be ripe for housing (e.g. vacant/unused land,
other specific areas such as Noosa Heads Bowls club, transport nodes).
Impacts of major events on business
Businesses were asked whether their turnover was impacted from major events in Noosa and
103 businesses responded to this question as shown in Table 15 in Appendix 4 to this report
and outlined below:
On average, 53% of businesses indicate that their turnover was positively impacted,
and only 14% indicated that they were negatively impacted. Of those positively
impacted (53%) the average positive increase was 25% across businesses, but 30%
for businesses likely to be directly impacted by tourism, and 9% for those indirectly
impacted by tourism.
Those that were negatively impacted by events (14%) indicated that they could lose
anywhere from 9% (businesses indirectly impacted from tourism) and 32% of turnover
(businesses directly impacted from tourism) during a major event.
Positive and negative issues association with tourism on businesses
Business respondents were asked to provide general comments regarding their views on
positive and negative impacts of tourism on Noosa and their business as shown in Table 16
in Appendix 4.
Overwhelmingly, the main negatives associated with tourism were traffic congestion
and parking...Environmental impact and overcrowding of areas were also considered
to be main impacts for Noosa as a whole…
A number of businesses indicated that there were no negative impacts to their
business (31%) and 16% indicated that there were no negative impacts on Noosa
generally.
Business desires for future visitor numbers
Overall, businesses in Noosa acknowledged the important impact of tourism on their
business and Noosa generally. When questioned about what they would like to see
happen to visitor numbers in the future, 68% of all businesses responding indicated that
they would like to see increases… There were no significant statistical differences
between locations of businesses, but those more directly impacted by tourism were more
likely to want higher increases…
2.5 Tourist accommodation - Needs and Supply
Prior to Noosa Plan 2020 taking affect, Noosa was (and continues to be) recognised both
nationally and internationally as a premium tourist and events destination. Tourism was one
of Noosa Shire’s key economic and employment sectors and maintaining adequate and
suitable provision and diversity of accommodation for visitors and tourists was (and continues
to be) of high importance.
Hastings Street and Gympie Terrace and surrounds were clearly identified as focal points for
tourism activities and accommodation, as were other larger resort sites reserved for visitors
pg. 28
Noosa Council Monitoring Report 2022/23
Section 30
and tourists, at the exclusion of permanent residents. Events were also focused around
Hastings St, Lions Park and Noosa Woods, and to a lesser extent Noosa River.
Multiple dwellings (units, townhouses and duplexes) developed prior to NP2006 had
development rights for either permanent living or short-term accommodation and during the
life of NP2006 the legal interpretation of a detached houses also allowed for its short-term or
permanent use. These dwellings become part of the tourist accommodation offer across
Noosa Shire.
With the commencement of online booking platforms like Airbnb in 2012, individual property
owners and investors took advantage of the higher rental returns expanding tourist
accommodation beyond the main tourist precincts and into residential neighbourhoods. This
increased the supply of tourist accommodation and diversified the accommodation offer
providing larger self-contained houses for larger groups and often a higher end premium
product.
As noted in 2.6 the importance of tourism and the provision of tourist accommodation was a
key component of NP2006 and its landuse planning strategies, with priority placed on tourist
accommodation and the protection of key sites.
The HNA2017 also recognised the accommodation needs of visitors and tourists as part of the
overall “housing needs” in Noosa Shire stating:
From the perspectives of housing needs and the local economy, it is important that the
accommodation demands of tourists or visitors are taken into account in developing
the New Noosa Plan, and are planned for as far as possible given the land constraints
in Noosa Shire, in alignment with future needs.
Whilst it was important to plan for the provision of visitor accommodation, its inclusion as part
of the housing needs assessment, and inherent competition for the same dwelling stock, was
somewhat problematic, particularly as it was difficult to estimate, or secure long term, both the
quantum of short term accommodation dwellings and the quantum of permanent housing stock
due to past planning schemes and the provisions of Noosa Plan 2006.
Also at the time of the HNA2017’s preparation, the true impacts of short term accommodation
in terms of residential amenity, housing supply and affordability, whilst noted in the report,
were only just emerging as issues.
2.5.1 Housing Needs Assessment 2017 – Tourist accommodation
The number and type of dwellings used for short-term accommodation was identified by the
HNA2017 as being particularly difficult to estimate as there were no restrictions under NP2006
on dwellings being used for permanent residents, visitors or tourists.
The HNA2017 identified that ABS data significantly under-estimated the provision of tourist
accommodation with their survey data only including tourist accommodation establishments
with 15 rooms or more; Tourism Noosa data only captured data from its members; census
data was also inconclusive in determining whether vacant properties were usually occupied
by residents or visitors; and Unitywater’s 2016 DMATT model overcounted attached visitor
dwellings and significantly under counted detached dwellings used for visitors. In addition,
interpretation concerns around the use of the terms “visitor dwelling” and “short-term rental
accommodation” in the HNA2017 also made the estimates in the HNA2017 uncertain.
Due to the variation in different estimates of visitor / tourist accommodation in the HNA2017,
the figures and estimates in this section will only be noted, with more accurate figures identified
in the Tourism Carrying Capacity Analysis in section 2.5.2. The HN2017 stated:
The implication of the difficulty in identifying dwellings used for visitor accommodation,
and visitor accommodation used for permanent residents, is uncertainty in estimating
the true stock of dwellings available to either…. There are generally no restrictions on
pg. 29
Noosa Council Monitoring Report 2022/23
Section 31
self-contained accommodation being used for visitors or residents in Noosa Shire,
except in the few cases where tourist only developments are approved.
2.5.1.1 Resident and visitor competition and conflict
The HNA2017 identified the mix of residents and visitors as a key issue and area of competition
and sometimes conflict, impacting both dwelling stock for permanent residents and supply of
tourist accommodation, as well as the ongoing viability of onsite managed resort businesses,
conferencing and events. Of particular note was the ability for dwellings to move between
permanent occupation and visitor accommodation unnoticed. Also noted was the occupation
of resort holiday accommodation by residents due to the lack of small dwelling housing stock
for residents only. The HNA stated:
The main issue remains that current planning allows a mix of visitors and permanent
residents in the majority of resort accommodation, which has not always been built to
provide a suitable permanent residential environment. The shortage of smaller,
affordable dwellings including studio, one and two bedroom apartments has led to
some residents seeking housing in such accommodation. This has led to competition,
and in some cases conflict. It has also created difficulties where management rights
have been sold in resort complexes and the holiday rental pool has continued to
decrease as a result of increasing permanent occupation.
It has additionally created difficulties in the conferencing market where the take-up of
visitor accommodation by residents has impacted on the supply of visitor
accommodation and the viability of conferencing. At peak times, visitor accommodation
is often booked out, and this has the potential to impact on Noosa Shire’s tourism
economy.
In reverse, unoccupied dwellings used as holiday homes or holiday rentals could be
said to remove stock from the permanent residential market. Like short-term rentals,
holiday rentals can be disruptive to residential amenity, particularly where they occur
in semi-attached or attached complexes. Council may wish to consider whether some
future developments should be earmarked as ‘resident only’, by applying a resident
only condition of consent. Limited application of this condition may provide benefit to
some residents in terms of assuring them of residential amenity.
It will be important to attempt to project future tourist/visitor accommodation needs
taking such considerations into account, in order as far as possible to cater for both
appropriately and reduce inappropriate mix.
2.5.1.2 Supply and demand for tourist accommodation and visitor dwellings
The HNA2017 undertook scenario modelling based on a continued growth rate of total visitor
nights of 2.5% to 2036, consistent with growth from the preceding decade. It is noted however,
that this scenario and the figures discussed below were identified as neither realistic nor
sustainable. This growth assumption has been included in this report for the purpose of
understanding the implications if past trends and demand for visitor / tourist accommodation
continued unchecked.
Significantly, this growth scenario was identified as having an impact on residential dwelling
supply for permanent residents and required movement of residents out of resorts, the take
up of secondary dwellings in part for visitors, expansion in visitor dwellings, further visitor sites
to develop and further use of permanent resident dwellings for short-term accommodation.
Tourist accommodation (motels, hotels, B&B and holiday resorts)
With regard to the future provision of traditional tourist accommodation including motels,
hotels, bed and breakfast (home hosted) accommodation and resorts, the HNA2017 identified
pg. 30
Noosa Council Monitoring Report 2022/23
Section 32
an additional 1,360 rooms required, under 2.5% annual growth scenario to 2036. The
HNA2017 noted some provision for some hotel accommodation had been planned for at
Settlers Cove, however at the time of writing this report development of this site had not been
actioned. The HNA2017 stated:
…. Assuming continued growth in total visitor nights of 2.5% to 2036, this form of tourist
accommodation during the period equates to a need for 1,360 additional rooms by
2036.
However such growth is neither necessarily realistic nor sustainable.
It was calculated by Council that an additional 428 units may be provided as part of the
Settler’s Cove site. This estimate was based on density calculations and site areas. It
was assumed that these would be provided by 2021.
It has also been assumed that there is some excess capacity in existing tourist
accommodation establishments given the occupancy rates of tourist accommodation
in Noosa Shire… If occupancy rates were to increase slowly from 60% on average per
year in 2016, to a maximum of 80% per year in 2036, some of this need would be met.
The HNA2017 identified potential social benefits for other forms of short-term rental
accommodation within homes such as bed and breakfast or home stays providing temporary
accommodation for students, work relocations, in between moves etc. The HNA2017 stated:
Restriction of these types of accommodation would have severe implications for the
availability of visitor, student and affordable accommodation in Noosa Shire. HRIA
considers that social reasons for requiring Short-term Rental Accommodation may
include work relocations, temporary stays between home purchases, widows needing
to share their house to continue to afford living in it etc. It is also well known in Noosa
Shire that there is an extensive student ‘home-stay’ population living in Noosa, and
particularly in Noosa Heads.
NP2006 allowed for home hosted accommodation subject to approval, however “home stay”
or exchange accommodation for students was not considered as visitor/ tourist
accommodation and did not require any planning approval.
Residents living in resort style accommodation
Under the 2.5% annual growth scenario, the HNA2017 suggested the movement of permanent
residents out of resort style accommodation would provide greater capacity for visitors /
tourists. The implications for displaced residents, whilst noted, was not clear, and given the
limited land supply and redevelopment potential for smaller dwellings this scenario would have
significant impacts on residential housing supply. The HNA2017 stated:
… some 250 dwellings within resort style accommodation that were currently occupied
by residents in 2016. Three scenarios have been developed to consider the movement
of residents out of this accommodation if it were to be used increasingly for tourist uses.
These scenarios are based on the trends understood to be occurring through
consultation with tourism providers, increasing visitor occupancy rates and likely future
trends in occupancy rates as a result of increased visitor demand. The low change
scenario therefore assumes that 50% of permanent resident households will move out
of resort style accommodation by 2036, 70% for the medium change scenario and 90%
for the high change scenario. Many of these households are likely to be renting.
According to these assumptions, this would result in additional capacity in existing
resorts of 125 rooms for the low change scenario, 175 rooms for the medium change
scenario and 225 rooms for the high change scenario. It is considered that the medium
change scenario may be the most appropriate. It is notable that this future is however
dependent on the ability to increase supply in alternative small, affordable resident
accommodation.
pg. 31
Noosa Council Monitoring Report 2022/23
Section 33
Visitor dwellings (short-term accommodation)
As noted earlier, by the HNA 2017 estimates on dwellings used for visitors / tourists was
difficult to determine for that study at the time. For more accurate figures see section 2.6
Tourism Carrying Capacity Analysis.
Under the continued 2.5% annual high growth scenario, the HNA2017 identified demand for
an additional 5014 visitor dwellings by 2036 with the demand for these dwellings decreasing
to 1596 if the occupancy rate of existing dwellings increased from 50% to 70%. The HNA2017
did not suggest where or how the provision of these extra dwellings would be met, given the
limited land supply. The HNA2017 stated:
It has also been assumed that there is some excess capacity in existing visitor
dwellings establishments given the occupancy rates of tourist accommodation in
Noosa Shire… it has been assumed that the occupancy rate for visitor dwellings for
the full year may be 50%. A similar occupancy increase to that used for tourist
accommodation (20% points) has been used to give an indication of the impact that an
increase in occupancy rates can have on the overall need for additional visitor dwelling
supply.
2.5.1.3 Meeting visitor and tourist accommodation needs
To provide for the demand for tourist accommodation under the 2.5% growth scenario, the
HNA2017 indicated there would be an increased demand for residential dwellings to be used
as visitor dwellings, impacting residential dwelling stock for permanent residents. The
HNA2017 noted this was not necessarily a desirable future nor sustainable, not in line with
Council policy and not recommended to be accommodated in landuse planning. The HNA2017
stated:
If the demand for tourist accommodation and visitor dwellings continued to grow in line
with past trends, a higher number of residential dwellings may be used for tourist
accommodation and this would reduce the amount of residential dwelling stock
available for residents. Some of this demand for tourist accommodation may be met
by the movement of residents out of tourist accommodation, by reduced vacancy rates
in the residential market allowing increased use by visitors, or by considering visitor
uses for ‘spare’ development capacity in the residential market…
Whilst not necessarily desirable or sustainable, the HNA2017 stated that in addition to the
development of visitor accommodation sites identified in NP2006, there was potentially three
ways of further increasing visitor dwelling stock:
use of secondary dwellings;
identification of new ‘tourist only’ resort sites (i.e. sites protected for visitor
accommodation);
increased use of dwellings for short-term accommodation.
Secondary Dwellings
The HNA2017 identified the possibility of using secondary dwellings both for permanent
residents (not just part of the household) and a portion for visitor accommodation. Despite this,
secondary dwellings for visitor accommodation was not, and continues to not be, permitted
within the definition of a secondary dwelling as prescribed under the Planning Regulation 2017.
The HNA2017 stated:
… The high take up scenario suggested that an additional 1,040 secondary dwellings
for visitors could be provided to 2036, and the low take up scenario suggested that an
additional 559 secondary dwellings for visitors could be provided to 2036. The low take
up scenario was considered to be more realistic and the resulting shortfall in
tourist/visitor dwellings according to this scenario…
pg. 32
Noosa Council Monitoring Report 2022/23
Section 34
Additional Resort Sites
The HNA2017 identified the possible identification of additional visitor only sites at the
exclusion of permanent residents, however recognised this would compete with any remaining
available land for permanent residential development. Despite this suggestion many visitor
only identified and approved sites wanted greater landuse flexibility to be used for either
visitors or residents. The HNA2017 also identified the inconsistency in landuse zones under
NP2006 applying to visitor only sites.
The HNA stated:
As discussed, ‘tourist only’ designations were recommended to apply to only 8 resort
sites in the 1997 Strategic Plan, however individual approvals have not taken
consistent approaches. These sites are mostly zoned Attached or Semi Attached
Housing but the use of Multiple Housing is specifically inconsistent whereas Visitor
Accommodation (of various types) is consistent. They have proved problematic to
control both by Council and resort managers.
A view also emerged from the consultation that such sites were simply not feasible to
develop; and requests to lift the ‘tourist only’ restrictions on both developed and
undeveloped sites have been made over the years.
It nevertheless remains as an option to designate other sites in this manner. Such a
designation would however probably require use of one of the remaining larger
development sites competing with residential uses, and these sites may not be well
located for tourism development.
Short-term Rental Accommodation Dwellings
The HNA2017 identified growth in permanent dwellings and secondary dwellings being used
for short-term accommodation for visitors and tourists was likely, if left unregulated.
However, the Holiday Rental Industry Association were noted in the HNA 2017 as seeing
empty dwellings or spare rooms in dwellings (home hosted) as an opportunity to meet visitor
and tourist accommodation needs, particularly during events. The HNA2017 stated:
.... The HRIA has identified that Short-term Rental Accommodation can generate visitor
occupancy year round to better utilise the wasted resource of empty holiday homes,
and can fill spare bedrooms created by smaller households living in larger dwellings.
They can also contribute to being able to meet the insufficient accommodation for
potential guests at events and festivals held in Noosa Shire.
This analysis suggests that Short-term Rental Accommodation may be important in
meeting visitor dwelling needs. Should this not be regulated, it is likely that significant
natural growth in the process will occur in line with trends in recent years. …
Some of the future tourist accommodation and visitor dwelling needs may be met by
residents renting out spare capacity in their existing dwellings, facilitated by online
platforms such as AirBnB and Stayz.
Summary of visitor and tourist accommodation needs being met
In summary, the HNA2017 identified that if ongoing demand in total visitor nights continued in
line with the 2.5% annual growth seen over the last decade, there would be significant
additional demand for tourist/visitor dwellings to 2036. The HNA2017 identified that this kind
of unchecked high growth demand would have to be offset (albeit not desriable) in a number
of ways, including:
the development of the remaining tourist only sites
further development of capacity within existing visitor areas, including
Noosaville, Noosa Heads, Sunshine Beach and Peregian Beach
pg. 33
Noosa Council Monitoring Report 2022/23
Section 35
increased occupancy of existing tourist accommodation
residents moving out of resorts to free up capacity
take up of secondary dwellings for short-term letting
further increased use of dwellings for short-term letting
use of vacant dwellings.
2.5.1.4 Impacts on the provision of permanent resident housing
The overall findings of the HNA2017 concluded that future tourism demand could have a
substantial impact on residential housing in the event of continued ongoing growth in tourism
in line with that over the last decade. In particular, the further spread of visitor and tourist
accommodation into residential areas and the movement of residents out of resorts was
identified as contributing to further competition between residents and visitors for dwelling
stock, displacement of residents and a lack of housing affordability.
Notwithstanding this, the HNA2017 stated it was an unlikely future scenario because of limited
land supply, community reaction and inconsistency with Council’s Local Economic Plan which
seeks a sustainable future for tourism and a more diversified economy.
The HNA2017 stated:
…It will nevertheless be important that the limits of tourist accommodation
sustainability in Noosa Shire are recognised, while encouraging the future growth of
the tourism industry in more sustainable ways. An unsustainable future would result in
likely further competition between residents and visitors, with a possibility of increased
displacement of residents and increased lack of affordability of housing. Increased
sustainability is in line with the policies of the Local Economic Plan, which looks beyond
tourism-driven economic growth and employment, towards a more resilient and
diversified economy…
2.5.1.5 Industry regulation
At the time the HNA2017 was prepared, regulation of the short-term rental accommodation
industry was in its infancy across Australia, with each state taking various approaches.
Notably, Queensland did not have any statewide position on the matter, nor had any
Queensland local governments. The Holiday Rental Industry Association was however,
promoting the sustainable development and self-regulation of the industry with an industry
code of conduct.
Despite this, many issues were emerging in the Noosa Community relating to short term
accommodation and in 2019 Noosa Council sought to introduce a new local law to manage
the ongoing use of short-term accommodation in Noosa Shire, which eventually took effect in
February 2022. See Section 3.6.1 for more information.
2.5.2 Tourism Carrying Capacity Analysis April 2020
The HNA2017 attempted to estimate the quantum of tourist accommodation across Noosa
Shire, and acknowledged the difficulty of the exercise, particularly with regard to dwellings
being used for short-term accommodation.
To get a better more accurate understanding of the existing capacity and provision of all tourist
accommodation across Noosa Shire, Council prepared a Tourism Carrying Capacity Analysis
in early 2020 using a number of data sources to compile a list of properties identified and
verified as undertaking some form of tourist /visitor accommodation.
The statistics discussed in this section are derived from that data. It should be noted that it
was acknowledged that additional undetected dwellings were likely to be also undertaking
short-term accommodation but could not be definitively verified at the time the analysis was
undertaken.
pg. 34
Noosa Council Monitoring Report 2022/23
Section 36
The following data sources were used:
Noosa Council rates database – properties identified as undertaking transitory
accommodation and paying the tourism levy;
Tourism Noosa survey of members – identified properties within resorts and unit
complexes operating short-term accommodation;
BNB Guard were engaged by Council to undertake website searches for properties
listed as available for short-term accommodation on online booking platforms;
online searches for properties listed as available for short-term accommodation
including real estate and property management agencies, holiday management sites
and online booking platforms.
The terminology used in describing various forms of tourist accommodation in the Tourism
Carrying Capacity Analysis includes:
Short-term accommodation: This definition includes all forms of self-contained accommodation
(dwellings) including dwelling houses, duplexes, townhouses and apartments, being used for
visitors or tourists for less than 3 month stays.
Secondary dwellings: This definition refers to the use of a second self-contained dwelling on
the same lot as another primary dwelling, for short-term accommodation, being the use of the
secondary dwelling for visitors and tourists for less than 3 months.
Guest Suite: This definition refers to home hosted styles of accommodation including a room
within a dwelling used for short-term accommodation, while the host remains in residences
during the guest stay, being the use of the room for visitors and tourists for less than 3 months.
Hotel, motel, cabins, retreats: The use of these terms refers to other tourist and visitor
accommodation with premises that are not self-contained within a hotel, motel, cabin or retreat
style accommodation.
2.5.2.1 Supply, diversity and distribution of tourist accommodation
A total of 6,211 different tourist accommodation type dwellings/ sites/ suites/ rooms (including
short-term accommodation of dwellings) and 315 backpacker beds were identified and verified
as operating for commercial gain in Noosa Shire as part of the Tourism Carrying Capacity
Analysis in April 2020.
As to be expected, the majority of tourist accommodation was located within the coastal area
and concentrated around Noosa River and the beaches. A significant 76.7% of the tourist
accommodation offer was provided in the form of short-term accommodation (self-contained
dwellings) comprising apartments, townhouses and dwelling houses and to a lesser extent
duplexes, secondary dwellings and home hosted accommodation. The most common type
of dwelling used for short-term accommodation were apartments providing 43% of the total
supply of tourist accommodation.
Whilst the hinterland / rural areas provided a diversity of tourist accommodation types, it
represented a much smaller more dispersed percentage of overall tourist accommodation offer
in Noosa Shire.
Of the total tourist accommodation offer across Noosa Shire, hotel and motel rooms and cabins
contributed just 10.6% of all available accommodation, and camping, caravan and RV sites
contributed 12.7%.
Table 17 provides a breakdown of accommodation types and number being used for tourist
accommodation across Noosa Shire and as a percentage of total tourist accommodation. Map
1 shows the spatial distribution across Noosa Shire.
pg. 35
Noosa Council Monitoring Report 2022/23
Section 37
Table 17 Tourist accommodation in Noosa Shire- Source: Tourism carrying capacity data April 2020
Accommodation type Noosa Shire Totals % of total tourist
accommodation
Dwelling house 885 14 %
Apartment 2712 44%
Townhouse 925 14.8%
Duplex 151 2.5%
Secondary dwellings 24 0.4%
Dwellings with guest suite 56 1%
Hotel & motel rooms, cabins 663 10.6%
Caravan sites, RV sites, Camp sites 795 12.7%%
TOTAL 6211
+315 Backpacker
beds
pg. 36
Noosa Council Monitoring Report 2022/23
Section 38
Map 1 Tourist accommodation distribution across Noosa Shire
pg. 37
Noosa Council Monitoring Report 2022/23
Section 39
2.5.2.2 Dwellings used for short-term accommodation – supply, type and distribution
4,753 dwellings across Noosa Shire were identified and verified as being used for short-term
accommodation, which included 80 properties using secondary dwellings for short stay letting
or residents undertaking home hosted accommodation.
Of these, 4673 were entire dwellings used for short term accommodation on an ongoing basis.
The use of dwellings for short-term accommodation was concentrated in the coastal urban
area.
Of particular note, 29% of all residential rated properties in the coastal urban area of Noosa
Shire were identified as being used for short-term accommodation comprising 3,788 multiple
dwellings (apartments, townhouses and duplexes) and 885 dwelling houses. A very significant
45% of all residential rated properties in Noosa Heads were identified as being used for short-
term accommodation.
Noosaville also had a significant portion of its residential rated properties being used as short-
term accommodation (27%) and the smaller beachside suburbs of Sunshine Beach and
Peregian Beach had 28% and 21% respectively, of residential rated dwellings being used as
short-term accommodation.
Overall, multiple dwellings ranging from 1-3 bedrooms were the main dwelling type being used
for short-term accommodation across the coastal urban area, with high concentrations in
Hastings Street, Noosa Parade, Noosa Drive, Gympie Terrace, Sunshine Beach and Peregian
Beach.
Whilst dwelling houses used for short-term accommodation were mostly concentrated around
Noosa Sound, Noosa River and Sunshine Beach they were also consistently scattered
throughout the balance of Noosaville, Noosa Heads and the stretch from Sunshine Beach to
Peregian Beach. Table 18 outlines the type and number of dwellings used for short-term
accommodation by location and as a percentage of total residential rated dwellings.
Dwelling type Noosaville Noosa Sunshine Sunrise Marcus Castaways Peregian Tewantin Hinterland TOTAL
Heads Beach Beach Beach Beach Beach
Dwelling houses 136 224 148 48 25 19 149 34 102 885
Apartment 639 1663 279 48 5 77 2 0 2712
Townhouse 532 152 48 54 1 11 94 33 0 925
Duplex 24 22 41 14 6 42 2 0 151
Secondary dwellings 3 5 2 2 1 4 3 4 24
Home hosted 15 12 1 4 15 9 56
TOTAL dwellings used 1349 2078 518 166 39 30 370 89 115 4753
for STA
Total Residential 5012 4654 1827 1736 377 307 1790 4570 7864 28218
Rated Dwellings
% residential rated 27% 45% 28% 9.5% 10% 10% 21% 2% 1.5% 17%
dwellings used for STA
or HH
29% of residential rated properties in coastal urban area used for STA or home hosted (excl
Tewantin)
Table 18 Dwellings used for short-term accommodation by location- Tourist accommodation carrying capacity data April 2020
pg. 38
Noosa Council Monitoring Report 2022/23
Section 40
2.5.2.3 Dwellings used for short-term accommodation by zones
A significant majority (80%) of all short-term accommodation dwellings were located in a
residential zone under NP2006 being the – Detached Housing, Semi-attached Housing and
Attached Housing zones. The Visitor Mixed Use Zone, whilst its main purpose was for visitor
and tourist accommodation, contained just 20% of the supply of short-term accommodation.
Table 20 outlines the type and number of dwellings used for short-term accommodation by
zone within NP2006.
Table 19 Dwellings used for short-term accommodation Noosa Plan 2006 zones
Zone dwelling duplexes townhouses apartments Secondary Guest TOTAL dwellings used
houses dwellings suites for short-term
accommodation
Detached house 694 27 23 57 18 42 861
Semi Attached 83 94 222 389 3 791
Attached housing 16 28 676 1488 2 2 2212
Visitor mixed use 53 1 3 776 833
Village Mixed Use 1 1
Rural Settlement 20 0 0 0 2 3 25
Rural 16 0 0 0 2 9 24
Business centre 1 1 1 0 3
Community 1 0 0 0 1
Totals 885 151 925 2,710 24 56
Note: Any variations in data between tables is a result of lot cancellations between time period of data analysis.
2.5.2.4 Short term accommodation by location
A breakdown of the short term accommodation available in each location in Noosa Shire is
provided in the proceeding sections. Data provides a breakdown of short term accommodation
within each zone under NP2006.
pg. 39
Noosa Council Monitoring Report 2022/23
Section 41
Noosaville
Overall, Noosaville had a mix of visitor accommodation types with 150 motel / hotel style rooms
and 130 caravan / camp sites and 1,322 short-term accommodation dwellings. The highest
concentration was along and around Noosa River and Gympie Terrace, however short-term
accommodation dwellings were also scattered throughout the Detached Housing zone,
particularly in Noosa Waters and areas close to the river. 26% of the total dwelling stock in
Noosaville was identified as being used fort short-term accommodation with a significant 88%
of them located in a residential zone and only 12% in the Visitor Mixed Use zone.
Table 20 Dwellings used for short-term accommodation Noosa Plan 2006 Noosaville
Zone Dwellings used Guest Secondary dwelling
for STA suite
Detached Housing zone 127 14 3
Semi-attached housing zone 42 1
Attached housing 1003
Visitor mixed use 155
Rural Settlement 1
Business centre zone 3
Open Space and Environment zone
Totals 1331 15 3
Total use of dwellings for STA 1349
Total Res rated Dwellings 5102
% STA (includes guest suite and 26%
secondary dwellings)
pg. 40
Noosa Council Monitoring Report 2022/23
Section 42
Map 2 Noosaville
pg. 41
Noosa Council Monitoring Report 2022/23
Map 2 Noosaville
ra ff Sy y | | ae ' A
RES we\@ FY & L Serr
ies aN . - +. eS,
aie } a — 2 et | i 2 ba. °
au Ct Be ate ee em
Sa eA / ‘xo ) Na Fal be ge . = c—~— % we . a
Reet es tee _ Siegen , es. - i ee AN G Frais
fae « Le a Sais ee ee gag ‘ae DL x”
ae ah mo ae J ayaa ca a 5 OY \ * Bi cae’.
os ory oe, Op Fa. Ba oe j= mae f. : oh as | <a ne -“ rae gia fe
ae aye se heey # 7] eS ye) Ths ® Yi WL a yO Le aa oe Oe i
Ved ee On 1 | Copa ame, ee fa", or | ee DS SEGRE BS
at iP TN Fe Vi gy & ea ak ae a
a t a ma ies c ad Gor Tw, OY oe ES Mi ay bo A ‘a — ia ’ Oia | - {~\_ >
me i fl 7 IEEE fan Ga iere ee ee )) —_———
i _ Y aed BaD | | eg \ a a Na 6g
j BS Ree Rox —_— ‘Blea rt
A lt "| a \q ST tale ~~
Bammer sg! fy) oe \
ers S 7 fh , \ : a
7 Bo er 45 it a 2 }, \ \ \ a am .
j aw, <n ta \ Tee ee
ae Sep jf X —~__ Raa mA
WA xy] / \/ oN
im “a | fk
Ji & Beach
; & lt S|
|
f/ |
oO |
Doonan a J
fo jo
S VA VA 7
TW if A
SS) £ vn
Maoog~ an
aa o
COAST Y fea
REGIONAL L fees
tei eile eC eee eer alr, ee aa tes 2 |
© Dwelling House ® Hotel [7 Locality [1] Lot
© Secondary Dwelling Motel N
© Duplex © Backpackers —= A
© Townhouse © RV Stopover/Caravan Park Coordinate System: GOA 1904 MGA Zone 58 ; s3000
@ Apartment © Campground Sie A Comp Sen GS
- Guest Suite © Retreat/Cabin (Goat of cht os bes nade e-conae ts sartmey and conpaaeraen Se
Nene a canta renee
pg. 41
Noosa Council Monitoring Report 2022/23Section 43
Noosa Heads
Noosa Heads had the highest concentration of visitor accommodation with 434 motel / hotel
style rooms available and 208 backpacker beds. 45% of the dwelling stock was identified as
being used for short-term accommodation in Noosa Heads with 70% located in a residential
zone. The highest concentration of short-term accommodation was in Hastings Street, Noosa
Sound and along Noosa Drive.
Table 21 Dwellings used for short-term accommodation Noosa Plan 2006 Noosa Heads
Zone Dwellings used for STA Guest suite Secondary
dwelling
Detached Housing zone 246 11 5
Semi – Attached Housing zone 351 1
Attached Housing zone 841
Visitor Mixed Use zone 623
Community Services zone
Totals 2061 12 5
Total use of dwellings for STA 2078
Total Res rated Dwellings 4645
% STA (includes guest suite 45%
and secondary dwelling)
Sunshine Beach
28% of the dwelling stock was identified as being used fort short-term accommodation in
Sunshine Beach with 99% of those dwellings located in a residential zone. The highest
concentration of short-term accommodation was around Duke Street however they were fairly
evenly distributed throughout the balance of the area. 19 motel style rooms and 107
backpacker beds were also available.
Table 22 Dwellings used for short-term accommodation Noosa Plan 2006 Sunshine Beach
Zone Dwellings used for STA Guest suite Secondary
dwelling
Detached Housing zone 134 2
Semi-attached Housing zone 132
Attached Housing zone 245
Visitor Mixed use zone 5
Totals 516 2
Total use of dwellings for STA 518
Total Res rated Dwellings 1827
pg. 42
Noosa Council Monitoring Report 2022/23
Section 44
Zone Dwellings used for STA Guest suite Secondary
dwelling
% STA (Including guest suites 28%
and secondary dwellings)
Sunrise Beach
9.5% of the dwelling stock was identified as being used for short-term accommodation in
Sunrise Beach, all located in residential zones. The highest concentration of short-term
accommodation was around David Low Way. There were no other forms of tourist / visitor
accommodation in the area.
Table 23 Dwellings used for short-term accommodation Noosa Plan 2006 Sunrise Beach
Zone dwellings used for STA Guest suite Secondary
dwellings
Detached Housing zone 44 1
Semi-attached housing zone 64
Attached Housing zone 56 1
Totals 164 2
Total use of dwellings for 166
STA
Total Res rated Dwellings 1736
% STA (including guest 9.5%
suites and secondary
dwellings)
pg. 43
Noosa Council Monitoring Report 2022/23
Section 45
Map 3 Noosa Heads, Sunshine Beach and Sunrise Beach
pg. 44
Noosa Council Monitoring Report 2022/23
Section 46
Marcus Beach / Castaways Beach
10% of the dwelling stock was identified as being used for short-term accommodation in
Marcus Beach/ Castaways Beach, all located in a residential zone. There were no other forms
of tourist / visitor accommodation in the area. The highest concentration of short-term
accommodation was on the eastern side of David Low Way.
Table 24 Dwellings used for short-term accommodation Noosa Plan 2006 Marcus / Castaways Beach
Zone dwellings used for Guest suites Secondary dwellings
STA
Detached Housing zone 44 1 1
Semi-attached Housing zone 23
Totals 67 1 1
Total use of dwellings for STA 69
Total Res rated dwellings 684
% STA (including guest suite 10%
and secondary dwellings)
Peregian Beach
20% of the dwelling stock was identified as being used for short-term accommodation in
Peregian Beach, all located in a residential zone. The highest concentration of short-term
accommodation was along the eastern side of David Low Way. 10 motel style rooms were
also available.
Table 25 Dwellings used for short-term accommodation Noosa Plan 2006 Peregian Beach
Zone dwellings used for STA Guest suites Secondary dwellings
Detached Housing zone 154 3 4
Semi-attached Housing zone 176 1
Attached Housing zone 31
Rural Settlement zone 1
Totals 362 4 4
Total Res rated Dwellings 1790
Total use of dwellings for STA 370
% STA (including Guest suites 20%
and secondary dwellings)
pg. 45
Noosa Council Monitoring Report 2022/23
Section 47
Map 4 Marcus Beach, Castaways Beach and Peregian Beach
pg. 46
Noosa Council Monitoring Report 2022/23
Section 48
Tewantin
2% of the dwelling stock was identified as being used for short-term accommodation in
Tewantin, all located in a residential zone. 10 hotel style rooms and 278 caravan / camp sites
were also available. The highest concentration of short-term accommodation was in “old”
Tewantin.
Table 26 Dwellings used for short-term accommodation Noosa Plan 2006 Tewantin
Zone dwellings used for STA Guest Suites Secondary dwellings
Detached Housing zone 37 13 2
Semi-attached Housing zone 1
Attached Housing zone 33 2 1
Business Centre
Recreation and Open Space
Totals 71 15 3
Total use of dwellings for
STA
Total Res rated dwellings 4570
% STA (including guest 2%
suites and secondary
dwellings)
pg. 47
Noosa Council Monitoring Report 2022/23
Section 49
Map 5 Tewantin
pg. 48
Noosa Council Monitoring Report 2022/23
Map 5 Tewantin
SS ES =
RRS EN TRS 61
; ORY Ss eo ™\ |
RHEE NSS a a
OS fe NN) U7 fo
RO zy F KR - Ye
BY AY | Ci \ 4 _
OY) VI L [~ | ' j
ape Mal AW WE:
aaa aN ZS ; \\V—
FA \\EE et ar a ""' : _
Laat \\ p(s f “ toe
7 ERE Le a SJ
} SF _ >, = } 2)
= i (3 \
~ re
\ awe | |
Z : Vn iy’ ij } ay a
ath > at, Seles ® ep ; —___}
ewan a ie Ad AY
ety a a he
ea ee NE
ey | Be iar fe ith: a ae Bo) Cie oie: io
er] Lg WS is Ps CD aon fa
le eee) a yy A
Ny AS \ a VE y 2G, Se i Ba / fet Fas
Semi \COSTTTT a ge Pare) a>
SHIN a Pleas eat Oy ee
Dol UD $< \~ Gg i Fein AO 4
sag Nil SE ai
HO SSA _ oy “\Nods avi ~a at
HUES ERIE . J Bopp?
Saveeeess Poe Ret
IT Sees ee
HLA Wa Bee eS \
Z 3 Wee ZZ pio cern a y
VR SATE SARS : OS
ory BB] Bony rae
Ag Lit
St Or, = ms SU NS /
LET TAA st By OH Ne
BCT OEE ip
EY Ae, SARIS ay ——
TITAN ESN EE TY |
eee ie eC eee alr eC ali ie al b LV L |
® Dwelling House ® Hotel C1) Locality Lot
© Secondary Dwelling © Motel N
® Townhouse ©@ RV Stopover/Caravan Park Ceeedinate System: GDA 1904 MGA Zone 58 A
® Duplex © Backpackers Sc ee — oe
©@ Apartment ® Campground = Mace cop Son 8
© Guestsute Retreat Cabin saosin
pg. 48
Noosa Council Monitoring Report 2022/23Section 50
Hinterland / Rural Areas
101 dwellings were used for short-term accommodation with 50% located in the Visitor Mixed
Use zone on Noosa North Shore and the balance mostly located in the Rural and Rural
Settlement Zones. The hinterland / rural area had a diverse range of visitor accommodation
including hotel and motel rooms, retreat / cabins, camping, caravanning and RV stopover sites.
0.6 % of the dwelling stock was identified as being used fort short-term accommodation in the
greater hinterland / rural area with majority located in the rural and rural residential zone.
Table 27 Dwellings used for short-term accommodation Noosa Plan 2006 Hinterland Rural
Zone dwellings used for STA Guest Suites Secondary dwellings
Detached Housing zone 12
Visitor Mixed use zone 51
Village Mix zone 1
Rural Settlement 20 3 2
Rural zone 16 6 2
Business centre
Open Space and Environment
Community Services zone 1
Totals 101 9 4
Total use of dwellings for STA 114
Total properties 7864
% STA (including guest suites 1.5%
and secondary dwellings)
pg. 49
Noosa Council Monitoring Report 2022/23
Section 51
Map 6 Hinterland Rural
pg. 50
Noosa Council Monitoring Report 2022/23
Map 6 Hinterland Rural
aecronne DF /
fe
AS OS \
Pee bl TRY
BIA AE Ts ~
RESTOR NS oe
XY yeh Y eis f 7
~ [eth EES FY A
PRAY TSI a pan -
SSD) Ne LTT
BEA GN SS EST Jee ee
7 RSAB AS er =
O ‘Ss Ca we: oT ARPA Lo
t | \ see: PRE a
Png A NUNS EBL Ae aT
Aes ST Ls bl
ie ae Cao A by ‘ng Say \ [ 1
eee Owes YE yal a Poa ey
LL The si Peo = a] "NAA dy I ES yesoroibat
eT aK SS Co Re | eee 2
“Seiten \ Sa on"
bo UL eon CL (eat nse 8 =e
ip Sia) | Wd Bran a es
(/ ee Ua) Peer Ss ie etl eee 4
(7 I IS | Aaa oigmee ee za
\ Peel Jo ene | Ac wieieit RH 1B sip a
\ ax) Boe ee hae |
| 6 oN NAUe Ear ts ee ia
LR RC cee ON LAUR Mount, ZT] oe Eta’
a DY KAMA GFA HY Se ian ra Ras
Tourist Short Term Accommodation 2020 - Hinterland oo 1s 1.8) L|
. Dwelling House ° Hotel [Locality Lot ,
eines © Backpackers ——. A
© Townhouse © RV Stopover/Caravan Park Coordinate System: GDA 1004 MGA Zone 58 ‘120000
© Apartment © Campground = ewer cup Sen O8
Guest Suite © RetreatiCabin sri wat aes nace ence Baan we orga ne
pg. 50
Noosa Council Monitoring Report 2022/23Section 52
2.6 The Noosa Plan 2006 – Housing, tourism and visitor
accommodation
The former Noosa Plan 2006 (NP2006) was originally prepared under the provisions of the
Integrated Planning Act 1997 then subsequently updated by a number of amendments
including amendments to comply with the Sustainable Planning Act 2009 and Planning Act
2016. NP2006 was in place from February 2006 and was superseded by the commencement
of Noosa Plan 2020 on 31 July 2020.
The provisions contained in NP2006 directly influenced the development outcomes as they
related to the provision and types of housing for permanent residents and all forms of visitor
accommodation, including short term accommodation, during this period.
At the time of its preparation, NP2006 was prepared and informed by 2001 census data and
other background studies, many of which are now over 20 years old. The 1997 Strategic Plan
provided NP2006’s platform, having introduced a “population cap” - a population carrying
capacity which could be supported within the planned infrastructure whilst maintaining its
environmental values.
NP2006, like other IPA-based planning schemes, did not include a substantial Strategic Plan,
but a brief overall Strategic Framework and Community Vision.
The relevant provisions from NP2006 are outlined and discussed below for their implications
on housing, visitor accommodation, economy -tourism and the community generally.
2.6.1 Community Vision
NP2006 had an admirable vision that the community and tourism industry would work well
together and that Noosa was internationally recognised as an innovator in achieving
interdependent, economic, social and environmental sustainability. The Community Vision
stated that by 2021 Noosa Shire would be as renowned for its focus on people as well as its
focus on the environment and tourism. Whilst the vision identified a continued emphasis on
the tourism and hospitality sectors, it also identified growth in other industries.
Despite this vision, the various provisions within NP2006 may not have successfully backed
this up, particularly around securing housing for permanent residents, the hierarchy of
landuses and the competition and conflict between residential and tourist accommodation.
Relevant sections from the Community Vision are contained in Appendix 5 to this report.
2.6.2 Strategic Framework
The strategic framework stated the urban areas of Eastern Beaches, Noosa Heads, Noosaville
and Tewantin accounted for about 75% of Noosa’s resident population but were the areas
most affected by visitor influx.
With regard to the strategies for residential development, the Strategic Framework spoke of a
variety of housing types being allowed for with higher densities encouraged in proximity to
centres. However, the strategies focused more on the urban settlement pattern and
sustainable development outcomes rather than the overall provision of housing for permanent
residents.
It stated that population growth and associated change should not adversely impact the
character, lifestyle and environment enjoyed by residents, with a sustainable resident
population carrying capacity of 62,031 people. However, the strategic framework also
recognised Noosa’s population would swell to 67,275 people from visitors during holiday
peaks.
pg. 51
Noosa Council Monitoring Report 2022/23
Section 53
The Strategies for visitor facilities were quite detailed with Noosa Heads and Noosaville
identified as the principal focus for visitor accommodation growth with some sites identified for
visitors only, at the exclusion of permanent residents. Visitor accommodation zones, in
Sunshine Beach, Peregian Beach, as well as Noosaville and Noosa Heads, were additionally
identified for visitor accommodation with a mix of business to benefit visitors. The streetscape
and built form in these areas was identified as particularly important as having a direct effect
on the character of Noosa – and therefore the tourism industry.
Visitor attractions were identified throughout Noosa shire focused on the natural assets.
Various forms of visitor accommodation in the rural and hinterland areas were also envisaged
by NP2006.
Relevant strategies from the Strategic framework are contained in Appendix 5 to this report.
2.6.3 Desired Environmental Outcomes
The desired environment outcomes of NP2006 were based on ecological sustainability as
defined by the Integrated Planning Act at the time of its preparation, requiring development to
achieve the outcomes. The only relevant DEO’s for this report were residential uses and
tourism. Interestingly the DEOs had more to say about tourism and the provision visitor
accommodation than housing for permanent residents.
Residential DEOs
The key Residential DEOs relevant to this report sought to provide Noosa’s population with
access to a broad range of safe, secure and affordability housing catering to current and
projected populations and responding to the changing housing needs of the community, whilst
also being separated from incompatible land uses and not impacting the amenity of residential
neighbourhoods.
The DEOs also stated that urban and rural settlement not only satisfy the needs and
aspirations of residents, but in many cases also meet the requirements of visitors.
Tourism DEOs
The Tourism DEOs focused on what tourism development should achieve including
contributing to the economic well being of Noosa Shire, and (optimistically) benefitting local
residents and enhancing residential amenity.
The DEOs sought to retain a range of visitor accommodation choices which included camping
grounds, caravan parks, backpacker hostels, hotels, motels, resorts, B&Bs, guesthouses and
serviced apartments, and that development should avoid mixing long term accommodation for
residents with short-term accommodation for visitors to avoid potential conflicts and the
erosion of visitor accommodation.
The DEOS also stated development was to reduce impacts on resident lifestyle and visitor
experiences from peak tourist periods by spreading visitor load over longer periods.
Overall the Residential and Tourism DEOs were somewhat conflicting by seeking to provide
both access to a broad range of affordable housing for Noosa’s population, but at the same
time meeting the accommodation requirements of visitors. The interrelationship between the
two uses were not fully appreciated and avoiding mixing residents was more about the erosion
of visitor accommodation and the visitor experience, rather than the erosion of resident
housing or residential amenity.
These DEOs were somewhat in response to visitor accommodation showing strain due to
owners permanently occupying or permanently renting units impacting the operation of
management right business and tourist activities in resorts. Interestingly, the potential erosion
of visitor accommodation appeared to be more important than the provision of housing for
residents at the time. Conversely, impacts from visitors occupying traditional residential
neighbourhoods had not been felt.
pg. 52
Noosa Council Monitoring Report 2022/23
Section 54
It was acknowledged within the extrinsic material that:
The Shire’s urban and rural settlements not only satisfy the needs and aspirations of
residents, but in many cases meet the requirements of visitors. This extends to
residents and visitors being attracted to the same forms of accommodation, which can
cause some level of conflict…
The retention of a range of visitor accommodation choices is important to the economy
of Noosa Shire. The loss of visitor accommodation to permanent residential housing
reduces visitor choice and has a negative effect on the economy...
Mixing long-term accommodation for residents with short-term accommodation for
visitors is avoided because it erodes the visitor accommodation base and has potential
to cause conflicts…
While the tourism economy is focused on natural low-key outdoor appeal and cultural
values, the views of Noosa Shire residents are often the best indicator of impacts that
would adversely affect the Shire’s core values…
Peaks within the tourism cycle generate significant impacts on residents’ lifestyle and
visitors’ experiences, due to the large increase in people in the Shire. Therefore market
emphasis has been directed to the Shire’s natural core values and to a spread of visitor
load across lengthy periods, as distinct from a focus on main holiday periods…
Overall, NP2006 DEOs appeared to primarily seek the positive benefits and outcomes from
tourism (which is supported) but failed to foresee the potential negative impacts and include
mitigating provisions around that. In particular, the protection of residential housing stock and
residential amenity of permanent residents was not clear.
The 1997 Strategic Plan was clearer in terms of the hierarchy of landuses and impacts on
residential amenity (but was silent on housing supply), - that while the visitor accommodation
base drew from a mix of permanent and visitor accommodation in houses and units, where
conflict arose due to this mix, the protection of residential amenity would prevail (S27.7.7).
This intent was not clearly carried through into NP2006.
The relevant desired environmental outcomes (DEOs) for residential uses and tourism are
contained in Appendix 5 to this report. There were no specific economic or community /
societal outcomes.
2.6.4 Locality plans – overall outcomes and zone outcomes
NP2006 comprised nine different locality plans, and while structurally similar, the outcomes
and zones differed in landuse outcomes for permanent residents and visitors.
Historical development and approvals somewhat influenced how the development outcomes
and tables of assessment were drafted and the zones spatially applied in NP2006. This was
particularly the case for existing larger resorts scattered throughout Noosaville and Noosa
Heads.
Each locality envisaged some form of visitor accommodation and tourist activities mixed with
permanent residents, with supporting services and facilities for both residents and visitors.
Whilst visitor accommodation and tourist activities were supported throughout Noosa Shire,
they were more intensely focused on the coastal urban areas including Noosaville, Noosa
Heads, Eastern Beaches and to a much lesser extent Tewantin. Less intense and more low
key, sustainable and environmentally focused visitor accommodation and tourist
developments were supported in the hinterland localities.
Accommodation for both residents and visitors was often referred to as “residential
development” or “residential uses” in the zone outcomes, confusing the zone intent. However
pg. 53
Noosa Council Monitoring Report 2022/23
Section 55
further reference to the use of the premises for either residents or visitors was generally
elaborated on. 1
The outcomes sought by NP2006 in the various localities as relevant to short-term visitor
accommodation, tourism, housing, economy and community are discussed below and extracts
from NP2006 are contained in Appendix 5 to this report.
2.6.4.1 Noosa Heads
Noosa Heads was clearly identified as the principal focus area for visitors, including visitor
accommodation. A mix of residents and visitors throughout the locality was envisaged, with a
greater focus in some areas for visitors as a priority over residents including Hastings Street
and Noosa Hill. The Business centre sought to cater for the needs of both visitors and local
residents with Hastings Street providing for entertainment and dining interests for visitors.
The outcomes sought residents to be accommodated in both detached and attached housing
with a high level of residential amenity, convenience and accessibility to services.
2.6.4.2 Noosaville
Like Noosa Heads, many of the outcomes for Noosaville were dominated by visitor or visitor
accommodation outcomes, including large significant development sites identified for future
resort developments at the exclusion of permanent residents and areas north of Gibson Road
identified as a focus for visitor accommodation. Notwithstanding this, Noosaville was also
identified as providing for much of Noosa’s commercial, retail, administrative, industrial and
social needs, as well as being the major focus for visitor accommodation and services.
Residents were identified as being housed in both detached and multiple housing with a high
level of residential amenity, however it was recognised that some areas in the attached
housing zone predominantly serviced visitors and a general mix of visitors and residents was
envisaged.
2.6.4.3 Eastern Beaches
The overall outcomes for Eastern Beaches emphasised permanent residential uses in Sunrise,
Marcus and Castaways Beaches. Visitor accommodation was still a significant use mixed with
permanent residential in Sunshine Beach and Peregian Beach, and specific reference is made
to the protection of low-cost accommodation for visitors (backpacker hostels and caravan
parks). Multiple dwellings were identified as a housing type for both permanent residents and
visitor occupation.
2.6.4.4 Tewantin & Doonan
Away from the coastal and river areas, the emphasis on visitors decreased, with the primary
role of Tewantin and Doonan providing for permanent residents. Tewantin and Doonan
localities had a greater focus on permanent residents and housing, with visitor accommodation
limited to specific existing resort locations, caravan parks and small scale accommodation
within rural locations. The Noosa Harbour Marine Village also gets specific reference for visitor
and resident entertainment, dining and boating-related activities.
1 Within the dictionary of the scheme “Residential Uses” included detached houses, multiple housing
and visitor accommodation.
pg. 54
Noosa Council Monitoring Report 2022/23
Section 56
2.6.4.5 Noosa North Shore
The overall outcomes for Noosa North Shore had more to say about the range and type of
visitor accommodation but less to say about permanent residents. A range of low key visitor
accommodation types were envisaged including a hotel, caravan park, camp grounds and
other built accommodation.
Residents and rural residential home site were focused along Noosa River.
Whilst Noosa North Shore was to accommodate a range of visitor accommodation and
experiences, the mix between residents and visitors was less likely as housing for permanent
residents were in locations further removed from visitor activities.
2.6.4.6 Boreen Point, Kin and Cootharaba
Boreen Point, Kin and Cootharaba focused on providing for both residents and visitors.
Sustainable visitor accommodation and tourist development compatible with environment was
envisaged. Commercial activities were primarily to focus on the day to day needs of residents
and to a lesser degree visitors.
2.6.4.7 Cooroy & Lake Macdonald
Cooroy and Lake Macdonald were identified as a rural settlement and surrounds for permanent
residents with a high level of residential amenity, however appropriate visitor accommodation
tourist development compatible with the environment was also envisaged.
2.6.4.8 Mary River Catchment
The Mary River Catchment was identified for residents, however sustainable visitor
accommodation and tourist developments compatible with the environment was also
envisaged.
2.6.4.9 Cooroibah
Cooroibah was identified as an area for rural residential development and a concentration of
residents. Visitor accommodation was identified as focusing on the camp ground, small cabin
parks and bed and breakfast style accommodation.
2.6.5 Definitions
The landuse definitions in NP2006 that influenced residential and visitor accommodation
outcomes specifically included:
• detached house
• multiple housing
• visitor accommodation
These definitions are contained in Appendix 5 to this report and discussed below.
2.6.5.1 Detached house
The definition for a “detached house” legally allowed for interchangeable use for long term
occupation by permanent residents or short-term use by visitors. However, the widespread
use of detached houses for commercial short-term use was never envisaged by the authors
of NP2006.
pg. 55
Noosa Council Monitoring Report 2022/23
Section 57
Historically, the use of detached house for short-term use was not a problem, as they were
few, managed by agents or used as holiday homes and generally not let for commercial gain.
They were scattered mostly throughout the beach or river areas with little impact on residential
amenity, housing supply or affordability.
With the explosion of online booking platforms like Airbnb, the short-term use of detached
houses became an investment proposition and rapidly spread throughout the Detached
Housing Zone, mainly in the coastal areas but also in more remote communities such as
Boreen Point, Teewah and other parts of Noosa North Shore. As the use of houses for short-
term accommodation increased, housing supply for residents was affected as was housing
affordability. Whilst most of these dwellings were removed from the permanent rental market,
some properties were offered for intermittent longer stays of 3 + months to permanent
residents then returned to short-term letting in high seasons. It also impacted residential
amenity, some streets significantly.
Short-term rental income outperformed the income from long term rental investment properties
and provided owners a fully furnished holiday house to use between commercial short-term
lets. This became particularly popular with interstate owners or those from Brisbane.
From a housing supply and monitoring perspective, the interchangeable use of detached
houses for use by either visitors or residents hampered the ability to measure both existing
and future housing stock to meet the housing needs of residents and the supply of tourist
accommodation.
This interpretation and application of the detached house definition also lead to long term
consequences with properties operating short-term accommodation enjoying existing use
rights beyond the life of NP2006.
2.6.5.2 Multiple housing
Prior to NP2006 coming into effect, a “multiple dwelling” allowed for interchangeable use for
long term occupation by permanent residents or short-term use by visitors. Given most units
were approved prior to NP2006, the majority of units (apartments, villas, townhouses, flats) in
Noosa have interchangeable use rights for both permanent and short-term visitor
accommodation.
These interchangeable use rights have resulted in buildings complexes and resorts
accommodating both permanent residents and visitors, often creating landuse conflict. This
also lead to an unknown quantum of housing stock at any time for permanent residents or
visitors, with dwellings moving between permanent and short-term visitor use without further
planning approval. In addition, resort operators with onsite management rights had concerns
about changing letting pool stock and complaints from onsite permanent residents impacted
by visitors.
Some larger resort sites were specifically approved for visitor accommodation and conditioned
to short-term occupation less than 3 months at the exclusion of permanent residents. However
due to the lack of permanent residential supply, some units were occupied by permanent
residents attempting to get around the maximum 3 month visitor stay.
NP2006 introduced a new definition for multiple housing which removed the inclusion of visitor
accommodation from the definition. Consequently, multiple housing approvals issued under
NP2006 were for permanent residents only. This was a positive move towards eliminating the
potential conflict between visitors and permanent residents in new development and protected
future multiple housing stock for permanent residents. However, the number of approvals
issued were few as a percentage of overall housing stock. There were however a small number
of approvals issued allowing for both multiple housing and visitor accommodation.
Notably the Multiple Housing definition was inclusive of accommodation units, which by
definition are not self contained.
pg. 56
Noosa Council Monitoring Report 2022/23
Section 58
Residential approvals
During the operation of NP2006, 100 approvals yielded 220 Multiple Housing Type 2 Duplex
dwellings across Noosa Shire. 80 Multiple Housing Type 4 - Conventional dwellings were
approved in Cooroy, 34 in Tewantin and 75 dwellings in Noosaville which included 30 dwellings
in Hofmann Drive within the Noosa Business Centre. Noosa Heads had 2 significant approvals
with 44 dwellings approved at Resort Drive (Parkridge) and 22 dwellings at Serenity Close
(Settler’s Cove).
189 secondary dwellings were also constructed under the definition of a detached house.
Table 28 Residential approvals NP2006
Approval type Number of approvals Number of Dwellings Beds
Multiple Housing Type 2 Duplex 100 220
Multiple Housing Type 3 Retirement. 7 444 182
Multiple Housing Type 4 Conventional 37 268
Ancillary / Secondary dwellings 189 189
2.6.5.3 Visitor Accommodation
NP2006 introduced a specific definition for visitor accommodation. Visitor accommodation
approvals excluded the premises’ occupation by permanent residents effectively protecting
visitor accommodation stock and reducing potential landuse conflict.
Four Visitor accommodation types were included in NP2006 catering for home hosted
accommodation, caravan parks, rural accommodation and conventional tourist
accommodation which included resorts, hotels, motels, hostels, dwelling units and
accommodation units.
Whilst the planning scheme prior to NP2006 included bed & breakfast style accommodation,
the Type 1 Home Hosted definition in NP2006 further opened opportunities for home hosted
accommodation in a dwelling house, subject to impact assessment. Rural accommodation
allowed for rural based accommodation including cabins, guest houses and retreats, subject
to impact assessment where there was a connection to rural production, environment or scenic
values.
Despite development approval being required for home hosted and rural accommodation, the
introduction of online booking platforms saw both these uses occur unregulated without
approval.
Visitor accommodation approvals
192 Visitor Accommodation Type 4 – Conventional dwellings were approved at Viridian in
Noosa Heads and 52 dwellings at Peregian Beach. Significantly, 263 hostel beds were
approved in Noosaville, Sunshine Beach and Noosa Heads, 24 cabins at Noosa North Shore
and 40 caravan / RV sites. Whilst only 8 approvals were issued for home hosted
accommodation, it was known that quite a number of properties were operating without an
approval.
pg. 57
Noosa Council Monitoring Report 2022/23
Section 59
Table 29 Visitor Accommodation approvals NP2006
Approval type Number of Number of Rooms / Beds / sites /
approvals dwellings cabin
Visitor Accommodation Type 1 Home 8 8
hosted
Visitor Accommodation Type 2 2 40 sites
Caravan Park
Visitor Accommodation Type 3 Rural 9 30 8 guest rooms
Visitor Accommodation Type 4 12 278 263 hostel beds
Conventional
(including 20 24 cabins
refurbs)
TOTAL 31 316 335
Visitor Accommodation & Residential approvals
Two approvals were issued where both Visitor Accommodation Type 4 Conventional and
Multiple Housing Type 4 were issued allowing for both permanent residential occupation and
short-term accommodation.
Table 30 Mixed visitor accommodation and residential approvals NP2006
Approval type Number of Number of
approvals dwellings
Visitor Accommodation Type 4 Conventional & Multiple Housing 2 13
Type 4
TOTAL 2 13
2.6.6 Zone provisions
Prior to the 2006 Planning scheme, urban residential land was either Village Residential,
Residential Single Unit, Residential Low Density, Residential Medium Density, Residential
High Density or Special Residential. Despite six residential zones many resorts, caravan
parks, group housing development, relocatable home parks, aged care and retirement housing
were developed through “spot rezonings” to Special Facilities and subject to a specific plan of
development. This was not uncommon for Queensland Planning schemes of that era, but led
to very ad hoc zoning maps.
The application of zones in NP2006 was based on the 1997 Strategic Plan Preferred Dominant
Land Use designations. It took a broader (smoother) approach and went from 20 landuse
zones down to 14. The myriad of scattered residential and visitor accommodation
developments within the Special Facilities zone were typically allocated the Attached Housing
Zone, or in the case of key visitor centres like Hastings Street, Gympie Terrace, Sunshine
Beach and the Noosa North Shore resort site, the Visitor Mixed Use Zone. It was not the
intention to retain a site by site speckled pattern to zonings, despite the established land use
pattern having such characteristics.
Given the continued mix of residents and visitors, with many sites having enshrined use rights
for both, there was considerable blurring of the line between permanent residential
neighbourhoods and visitor accommodation, particularly as most accommodation consisted of
pg. 58
Noosa Council Monitoring Report 2022/23
Section 60
strata titled dwellings, rather than traditional motel or hotel style accommodation under single
ownership. Therefore, this mix existed with single buildings as well as neighbourhoods.
Each zone is further discussed below.
The Detached Housing Zone allowed for home-hosted bed and breakfast style
accommodation, subject to impact assessment, however a detached house was allowed to be
used for short-term accommodation without further planning approval. Detached houses were
identified as housing permanent residents, however the detached housing zone did not
emphasise the protection of housing exclusively for permanent residents. The zone sought a
high level of residential amenity, however this was difficult to achieve in cases where the
number of dwellings operating short-term accommodation was high in particular areas.
The Semi-attached Housing Zone only allowed for visitor accommodation within nominated
resort sites or existing backpacker hostels protected for that purpose. Otherwise, the zone was
intended for development for the purpose of Multiple Housing – Type 2 Duplex for permanent
residents, as well as communal living arrangements like retirement villages and relocatable
home parks. Duplexes excluded short-term use and home hosted accommodation was an
inconsistent use in the zone. Notwithstanding this, historical multiple dwelling approvals
allowed for interchangeable use rights for permanent residents or visitors in this zone. There
was limited application of this zone over existing unit blocks and resorts.
The Attached Housing Zone was identified for a mix of residents and visitors, despite it being
a residential zone, allowing for multiple dwellings and visitor accommodation. Historical
multiple dwelling approvals allowed for interchangeable use rights for permanent residents or
visitors in this zone.
This zone specifically identified larger existing and new resort sites for long term protection for
visitors only and allowed for a mix of other types of visitor accommodation including hostels,
motels, resorts and the like. Because there wasn’t a tourist accommodation zone applied to
individual properties, there were existing resort sites within the Attached Housing zone where
multiple housing (for residents) was an inconsistent use. In Tewantin, visitor accommodation
was not permitted in the Attached Housing Zone, other than at the Noosa Lakes Resort.
Overall, this zone facilitated an ongoing mix of residential and visitor uses potentially facilitating
landuse conflict between residents and visitors.
The Visitor Mixed Use zone was applied to mixed use visitor accommodation precincts such
as Hastings St, Duke Street, Gympie Terrace and Noosa North Shore. These correlated with
the four designated Visitor Centres of the NP2006 Strategy Map and to the Visitor
Accommodation & Services designation of the 1997 Strategic Plan. It did not pick up individual
visitor only sites or large established resorts which were instead typically in the Attached
Housing zone or occasionally in the Semi-Attached Housing Zone.
A range of visitor accommodation types were permitted, with provisions varying location by
location. In Noosaville and Noosa Heads multiple housing (for permanent residents) was
consistent subject to impact assessment. The purpose of the Visitor Mixed Use zone was
arguably eroded by allowing both residents and visitors.
The Business Centre zone throughout the Shire took varying approached to residential uses.
In Cooroy, Tewantin, Noosaville (Mary St/Thomas St only) and Noosa Junction, small multiple
dwelling units were made consistent in mixed use developments. However, landowners did
not take up these provisions within the life of the scheme.
2.6.7 NP2006 - Implications for housing and visitor accommodation
Legacy issues from previous planning schemes, with multiple dwellings having
interchangeable use rights for both permanent and short-term uses, coupled with a dwelling
house being used for short-term accommodation, resulted in large parts of the coastal urban
area becoming a mix of permanent residents and visitors. 29% of all residential rated
pg. 59
Noosa Council Monitoring Report 2022/23
Section 61
properties in the coastal urban area were used for short-term accommodation with a significant
45% of all dwellings in Noosa Heads being short-term let.
NP2006 continued to facilitate the mix of permanent residents and visitors throughout various
zones. The desired environmental outcomes, locality outcomes, zone outcomes and tables of
development continued to have an emphasis on mixing uses throughout large parts of the
coastal urban area.
The lack of distinction between the Visitor Mixed use zone and the Attached Housing zone
created ongoing landuse conflict and blurring of zone outcomes. Whilst the locality outcomes
generally identified areas for visitor accommodation they failed to identify locations for
permanent residents or establish a hierarchy of uses between visitor and permanent housing.
The exception was the Semi-attached housing zone which attempted to secure future
development for duplexes for permanent residents.
NP2006 provisions impacted the ability to determine a known quantum of long term dwelling
stock for the needs of both permanent residents and visitors. This ultimately saw a continuation
of landuse conflict and competition for dwelling stock between visitors and residents during
the life of NP2006. This was recognised as a key issue in the HNA2017.
In summary, the key provisions within NP2006 that had implications for landuse conflict,
housing supply and housing affordability including:
1. the locality outcomes and zones recognised and facilitated an ongoing mix of
permanent residents and visitors;
2. the Semi-attached and Attached housing zones were broadly applied to both
residential and visitor accommodation sites, including key sites approved or identified
for visitors at the exclusion of permanent residents;
3. the Visitor Mixed Use zone was only applied in locations where a mix of residential and
non-residential uses were intended, and therefore was not applied to a number of key
visitor accommodation sites;
4. in some localities, residential zones did not prioritise housing for permanent residents
over visitor accommodation (except semi-attached zone) allowing for visitor
accommodation throughout the zone;
5. there was little to no distinction between the Visitor Mixed Use zone and Attached
Housing zone, both allowing for permanent and visitor accommodation;
6. short-term accommodation was permitted in detached houses in residential zones
impacting housing supply and residential amenity in some locations;
7. the outcomes largely prioritised visitor accommodation and needs over residents, to
the extent that when residents and visitors were mixed together, residents were
identified as a potential conflict for visitors and contributing to the erosion of visitor
accommodation;
8. the desired environmental outcomes did not recognise the potential impacts of visitor
accommodation on housing stock, residential amenity and housing affordability;
9. desired environmental outcomes sought affordable housing, however residential zones
allowed for visitor accommodation competing for housing stock, particularly smaller
dwellings;
10. there was a stronger emphasis on the provision of tourist facilities, services and
accommodation in Noosaville and Noosa Heads in particular, than the provision of
permanent housing and facilities for residents.
Notwithstanding this, NP2006 introduced a number of provisions supporting housing for
residents and protecting visitor accommodation, including:
1. separate definitions for visitor accommodation and multiple dwellings;
2. Semi-attached Housing Zone was reserved for permanent residents in duplex style
accommodation;
pg. 60
Noosa Council Monitoring Report 2022/23
Section 62
3. visitor only sites were identified at the exclusion of permanent residents to avoid a mix
of visitors and residents;
4. small dwellings in a mixed use format for permanent residents, in particular key
workers, in the Business Centre zone in Noosa Junction and Thomas / Mary Street;
5. continued allowance for home hosted and bed and breakfast styles of accommodation
in a dwelling house;
6. continued allowance for rural accommodation for rural based tourist accommodation.
2.7 Other considerations for Noosa Plan 2020
During the life of NP2006 and leading up to the preparation of Noosa Plan 2020, a number of
strategies and reports were undertaken which helped inform the new plan. Interestingly, earlier
reports did not foresee the issues and implications of short term accommodation and very
much followed through the prioritisation of visitor accommodation over the provision of housing
for residents, and the conflicts residents posed tourists.
As time progressed however, the full implications and impacts of short term accommodation
were identified in line with the growth of short term accommodation.
Below is an outline and extracts from those that were relevant to housing, the tourism economy
and short term accommodation.
2.7.1 Draft Residential Development Strategy 2007
In 2007, prior to amalgamation of Noosa Shire into Sunshine Coast Regional Council, a draft
Residential Development Strategy (the Strategy) was prepared by Noosa Council. The
Strategy specifically recognised the mix of housing for both permanent residents and visitors
but prioritised the protection of residential amenity. The Strategy failed however to identify the
impacts of visitor accommodation on permanent housing stock, instead identifying that
permanent residents in resort were to be discouraged as it would lead to a reduction in holiday
accommodation and cause conflicts. This in itself would not have been problematic if there
were greater options for resident only smaller dwellings. The Strategy stated:
It is recognised that Noosa Shire is a popular visitor destination and the mix of housing
for permanent residents with short-term accommodation for visitors has potential to
yield conflicts. Where such conflicts arise, the protection of residential amenity prevails.
Accordingly the protection of holiday resorts for short-term visitor accommodation is
vital for the local tourism and hospitality industry and the establishment of permanent
residents within such resorts is discouraged as it not only decreases holiday
accommodation available but can also lead to conflicts of interest.
The visitor accommodation precincts of Noosa Heads, Noosaville and Sunshine Beach
are the dominant urban visitor accommodation areas. Outside of these localities visitor
accommodation is generally of a smaller scale (such as B&B’s, Guesthouses and Host
Farms) or nature based accommodation reflecting its physical setting.
In addition, home-based enterprises such as home offices and B&B accommodation
are encouraged throughout Noosa Shire but only where they do not impact on the
residential amenity enjoyed by neighbours.
The Strategy identified an anomaly in NP2006, with home hosted accommodation being
subject to impact assessment due to potential adverse impacts on the amenity of residents in
surrounding houses, however development applications were not being submitted for short-
term letting of entire houses. The report suggested Council investigate the issue to determine
whether it was a real concern and if so, how big an issue it was. This process was interrupted
by Council’s amalgamation, so the issue continued somewhat without further investigation for
many years.
pg. 61
Noosa Council Monitoring Report 2022/23
Section 63
The Strategy accepted housing affordability as an issue in the coastal areas because of
competition with visitors, so identified Tewantin and Cooroy as areas for more affordable
housing stock. The Strategy was also concerned with the erosion of visitor accommodation
with residents living in resort style accommodation in the coastal area. The Strategy seemed
to accept the main coastal areas were not locations for permanent residents at an affordable
level, and interestingly that permanent residents depleted visitor accommodation stock and
left a negative impression on visitors where they resided in units, stating:
There’s generally strong competition between holidaymakers and permanent residents
where land in Noosaville, Noosa Heads and the Eastern Beaches is zoned for unit
development. The occupation of visitor resorts by permanent residents has become
very popular as it offers small, low maintenance units at a reasonable price within well-
located complexes with recreational facilities such as swimming pools and tennis
courts. It does however erode the local tourism industry and should be prevented if it
leads to shortfalls in visitor accommodation. It generally also leads to conflicts between
visitors and residents, leaving visitors with a negative impression.
2.7.2 Directions Paper – the New Noosa Plan 2016
The first stage in the preparation of the draft NP2020 was the development of the Directions
Paper (Paper) in 2016. Interestingly, the Paper did not identify any major concerns with short-
term accommodation of entire houses in residential zones at the time, suggesting the issues
had not fully emerged at the time of its preparation.
The Paper supported visitor accommodation and its importance to Noosa’s economy,
particularly the still emerging use of houses (at the time) for home hosted accommodation and
short-term accommodation using online booking platforms. However, the language used in the
Paper appeared to see short-term accommodation opportunities being mostly home hosted
styles of accommodation rather than entire houses, although this was not very clear.
The Paper recognised the conflict between residents and visitors in resort complexes as being
detrimental to onsite resort management businesses and identified the need to investigate
whether there was a need to identify areas for permanent living only. Potential conflict between
residents and visitors in detached housing areas was not discussed.
The key part of the Paper are outlined below:
Current trends - Opportunities for short-term visitor accommodation are emerging
within housing areas.
Key Priorities
• Increase the range and diversity of housing choice.
• Increase opportunities to build small dwellings - 1 and 2 bedrooms.
• Investigate opportunities for increasing the range and mix of uses and densities
around key transport nodes such as town centres.
Theme – Housing choice
The lack of available 1-2 bedroom housing has led some residents to seek housing in
resorts and visitor accommodation. This has created competition, and in some cases
conflict, between residents and short-term visitors for housing, particularly in larger
resort complexes. This situation can also be detrimental to the viability of on-site
manager businesses.
Accommodation for visitors is important for the success of Noosa’s tourism economy.
At peak tourist times visitor accommodation is often booked out.
The take up of visitor accommodation by residents impacts on the supply of
accommodation for tourists.
pg. 62
Noosa Council Monitoring Report 2022/23
Section 64
The range of visitor accommodation available in Noosa has recently diversified with
some residents offering spare rooms or at times their entire house to visitors seeking
a more localised experience through on line booking sites such as Stayz and AirBnB.
Many houses are also permanently used as holiday accommodation. Some residents
also accommodate overseas students in spare rooms.
Priorities for housing choice - Investigate whether there is a need to identify certain
areas as being suitable as attached housing for use for permanent living only.
Following the Paper’s public consultation, issues regarding amenity and traffic impacts from
short-term accommodation on residential neighbourhoods were raised, as was the use of
homes for backpacker and student accommodation with concerns for overcrowding. The lack
of smaller units for permanent residential accommodation and the conflict between permanent
residents and visitors for units was also raised during consultation.
The Paper was a reflection of the time it was prepared, being prior to the preparation of the
HNA2017 and prior to the increased growth in short-term accommodation in the detached
housing areas and the full impacts being experienced.
2.7.3 Short-term Accommodation – Online Platforms Issues Paper 2019
With the sharp rise in dwellings being used for short-term accommodation and an increased
number of complaints, Noosa Council commissioned an Issues Paper on Short-term
Accommodation online platforms and associated issues in early 2019 (Issues Paper). The
Issues Paper aimed to explore the challenges arising from the sharp growth in the short-term
online rental market in Noosa Shire, explore the complexities of the issue and develop a suite
of reasonable and actionable responses.
The report identified “challenges” with online booking platforms. Most challenges were relevant
to landuse planning, the housing market including rental stock, rental prices, vacancy rates,
housing affordability and sales prices, as well as other issues around the increased transitory
nature of communities, over-tourism and residential amenity issues around increased noise,
waste, traffic and parking.
2.7.3.1 Negative affects of short-term accommodation and online platforms
A number of key negative effects and implications of short-term letting, whilst not all
experienced in Noosa to the full extent at the time of the report’s preparation, were identified
as risks if short stay letting was left unchecked including:
Over tourism
Tourism Gentrification
Reduced residential liveability
Private residential amenity
Public residential amenity
Permanent rental market and housing affordability
Disruption to sense of community
These negative effects are further elaborated on in Appendix 6 to this report.
2.7.3.2 Responses and actions
The Issues Paper outlined a number of actions and response opportunities for Noosa Council,
supported by appropriate resources and key performance indicators. Key responses included,
but were not limited to:
• monitoring, registration and information collection on short-term accommodation;
pg. 63
Noosa Council Monitoring Report 2022/23
Section 65
• legislative and planning responses – land use planning – clearly defining short-term
accommodation identification of locations where short-term is permitted;
• capping accommodation bookings and availability;
• local laws to regulate ongoing use and obligations of fire safety, pool safety and access;
• social responsive actions – prioritising resident welfare over tourism growth – a
destination capacity;
• hosting guidelines considering neighbourhood amenity;
• complaints mechanisms;
• licencing system, fees and mandated registration process, financial penalties for
disrupting residential amenity.
In response to this paper a number of actions were undertaken by Noosa Council:
1. With the assistance of BnB Guard, Council records and research, a list of properties
operating short-term accommodation, home hosted accommodation and other forms
of tourist accommodation was finalised in April 2020.
2. Various landuse planning approaches for dealing with short-term accommodation and
home hosted accommodation were considered as part of the preparation of NP2020
(section 2.8 for further information.
3. A first version of a new local law was drafted in 2019. A second draft was prepared and
finalised taking affect in February 2022, requiring all short-term accommodation and
home hosted accommodation to gain approval under the local law.
4. A Good Management of Short-term Accommodation Guideline was also prepared to
support the local law.
5. A 24/7 complaints hotline and complaints process was established to support the local
law. See section 4 Community Wellbeing for further information.
2.8 Draft Noosa Plan 2020
As previously discussed in this report, a number of issues were identified within the provisions
of NP2006 regarding the lack of clarity and hierarchy of landuses for housing for permanent
residents and the provision of visitor accommodation. NP2006 both recognised and facilitated
the mix of permanent residents and visitors within its planning provisions and failed to protect
long term housing stock for permanent residents.
Legacy issues around the use of a dwelling house for short-term accommodation, resorts
within residential zones, interchangeable use rights for multiple dwellings, the broad allocation
of residential zones to include resorts, competition for dwellings stock and limited land supply
were all key matters to be addressed by NP2020.
Prior to the preparation of the 2019 Issues Paper and the HNA2017, past studies / reports
seemed to accept that Noosa Shire contained a mix of permanent residents and visitors. Visitor
accommodation was seen as finite at the time and was seen as necessary to protect. The
question of impacts of visitor accommodation on the supply of housing stock and housing
affordability had not really emerged as a concern and was not prioritised.
The HNA2017 identified the conflict and competition for dwelling stock between permanent
residents and visitors as being a key issue in Noosa’s housing market, but did not provide
solutions. It also identified that continued high tourism growth as seen in the past would lead
to growth in demand for visitor accommodation requiring additional visitor accommodation
sites, increased use of dwelling stock for short-term accommodation and the movement of
permanent residents out of resorts, all depleting residential housing stock and impacting
housing affordability.
Housing supply and affordability issues together with the increased use and investor purchase
of dwellings for short-term accommodation, the use of online booking platforms and associated
pg. 64
Noosa Council Monitoring Report 2022/23
Section 66
impacts on residential amenity and sense of community were the primary planning issues that
emerged during the preparation of NP2020.
The Issues Paper, complaints and public consultation forums provided insights into the issues
around short-term accommodation for consideration in the draft NP2020.
Being a difficult issue to address, balance and solve, two draft versions of NP2020 were
publicly notified in 2019, with the second draft responding to public consultation issues on the
first draft.
2.8.1 First draft NP2020
The first draft NP2020 (first draft) was publicly notified in February 2019 for a 12 week period.
In an attempt to concentrate and contain short-term accommodation within locations deemed
to be popular with visitors, the first draft NP2020 proposed a Short Stay Area Map within the
Low, Medium and High Density Residential zones where short-term accommodation for
visitors was permitted, without planning approval. The Short Stay Area Map is identified as
Map 11 to this report and contained in Appendix 7.
The introduction of a Tourist Accommodation zone additionally identified large portions of the
coastal urban area for visitors and visitor accommodation. Other provisions were also included
for a range of visitor accommodation types such as home hosted accommodation, nature
based tourism in various zones including the Rural Residential and Rural zones in the
hinterland.
The whole of Noosa Shire was also identified as a “party house restriction area” under the
Planning Act 2016 making a statement about the importance and protection of residential
amenity.
Details on the first draft of NP2020 are contained in Appendix 7.
2.8.1.1 Public consultation issues
Public consultation on the first draft NP2020 yielded approximately 940 submissions. The
issue most frequently addressed by submitters was short-term accommodation (376
submissions). Property investors and businesses reliant on this income stream made up the
bulk of these submissions together with a large number from residents.
This approach raised various concerns regarding landuse equity across the Low Density
Residential zone in particular, with some parts of the zone being able to short stay let without
planning approval and others requiring impact assessment. Concentrated growth in dwellings
used for short-term accommodation within the map area and the erosion of residential amenity
and communities, housing stock and housing affordability were also key concerns from
existing residents. The purpose and intent of residential zones, being for permanent residents,
was also brought into question. Residents were also concerned about the Short Stay Area
Map “legitimising” existing and future short-term accommodation within the area.
Property investors and the real estate property industries lobbied for growth in the use of
dwellings for short-term accommodation and the rights of all property owners to short stay let
their property. Smaller settlements like Teewah and Boreen Point, both with strong histories
of holiday cottages felt slighted by their exclusion from the Short Stay Area Map. Equity and
disparity in the zoning was a major issue in the first draft and proposed map.
On further review of the issues raised during consultation and other planning matters, there
were a number of concerns with the first draft including:
how potentially significant growth in short-term accommodation and visitor numbers
impacted community and infrastructure and whether this was sustainable or desirable;
pg. 65
Noosa Council Monitoring Report 2022/23
Section 67
how existing and future housing needs of residents would be met with the significant
depletion of housing stock being converted to short-term accommodation;
that existing and future residents have varying levels of housing need and affordability,
including demand to live in desirable locations such as the river and beaches, not just
visitors;
how depletion of housing supply directly impacts housing affordability with demand
outweighing supply;
impacts on existing permanent residents, their sense of community and the social
fabric of residential neighbourhoods;
the continued mix, competition and conflict between residents and visitors;
impacts on residential amenity; and
the increased transience of Noosa.
Concerns were also raised regarding the allocation of the Tourist Accommodation zone. Some
residents wanted to be in a residential zone to reinforce the permanent residential nature of
the property. However, onsite resort managers wanted to be included in the Tourist
Accommodation zone to reinforce the tourist nature of the property and for the long term
viability of their business.
2.8.2 Second Draft NP2020
In response to submissions on the first draft NP2020, and a reconsideration of the planning
issues around short-term accommodation, there was a substantial rethink and shift as to how
short-term accommodation should be addressed in the second draft NP2020. The second
draft was publicly notified in September 2019. Notably, the Short Stay Area Map was removed
entirely.
Low Density Residential zone
In the second draft, the main purpose of the Low Density Residential zone, being for
permanent residents, was reinforced through the development assessment tables and zone
outcomes. Short-term accommodation of a dwelling on an ongoing basis was identified as an
inconsistent impact assessable use in the zone.
A permanent resident could however, short stay let their principal place of residents when they
were away for no more than 4 times and 60 days a year as accepted development subject to
requirements.
This approach was applied equitably across the whole of Low Density Residential zone and
reinforced the intent and purpose of the zone for permanent residents by excluding the entire
use of a dwelling for short-term accommodation on an ongoing basis. This approach also
protected the long term provision of housing stock for permanent residents, notwithstanding
some houses had claims for existing use rights to continue to operate short-term
accommodation.
A home based business where the host remained in residence but hosted guest in the
traditional bed and breakfast fashion (guests not having their own cooking facilities) was still
allowed.
Medium and High Density Residential zone
In the second draft, short-term accommodation was proposed uniformly as a consistent impact
assessable use in both the Medium and High Density Residential zones. However, a
pg. 66
Noosa Council Monitoring Report 2022/23
Section 68
permanent resident could short stay let their principal place of residence when they were away
for no more than 4 times and 60 days a year as accepted development subject to requirements.
Short-term accommodation was only an inconsistent and impact assessable use if located in
the High Density Residential zone adjoining or over the road from a Major Centre zone.
This was a different approach from the first draft which identified short-term accommodation
as only being consistent within the map area and an inconsistent use outside of the map area
to protect new multiple dwelling stock for permanent residents.
Tourist Accommodation zone
In the second draft a permanent resident in the Tourist Accommodation zone could make their
principal place of residence available as short-term accommodation for no more than 4 times
and 60 days a year as accepted development subject to requirements. Beyond that it was
typically code assessable although on various significant sites the use of short-term
accommodation required impact assessment.
Multiple dwellings for permanent residents were subject to impact assessment in this zone,
and on many sites, including all of Hastings Street, were inconsistent.
No further changes were made to the tables of assessment in the zone, however in response
to submissions there were some changes to the allocation of the Tourist Accommodation zone.
Properties to the north of Noosa Parade, east of Munna Crescent and including Woorookool
Place and Barbados Crescent were included in the Medium Density Residential zone rather
than the Tourist Accommodation zone.
The Islander Resort at 185 Gympie Terrace Noosaville was also proposed for inclusion within
the Tourist Accommodation zone rather than the Medium Density Residential zone.
Rural Residential zone
In the second draft, short-term accommodation was a consistent impact assessable use in the
Rural Residential zone. A permanent resident could short stay let their principal place of
residence when they were away for no more than 4 times and 60 days a year as accepted
development subject to requirements.
Rural zone
In the second draft, short-term accommodation was code assessable use in the Rural zone
where on at least 4ha, accommodating no more than 12 guests if in a single dwelling or no
more than 4 cottages / cabins etc. housing 8 guests. A permanent resident could short stay let
their principal place of residence when they were away for no more than 4 times and 60 days
a year as accepted development. If not meeting either of these requirements the use was
consistent but impact assessable.
2.8.2.1 Public consultation issues
Following public notification of the second draft NP2020, just over 600 submissions were
received, of which three quarters addressed short-term accommodation. Approximately 50%
of the submissions relating to short-term accommodation were various templates/proformas
supporting particular interest groups which circulated widely amongst residents, property
owners and business owners.
A range of commercial interest issues raised were comprehensively considered, however the
growing residential amenity / community and housing supply issues around short-term
pg. 67
Noosa Council Monitoring Report 2022/23
Section 69
accommodation lead to Council confirming the second draft NP 2020 making short-term
accommodation an inconsistent use in the Low Density Residential zone in the final NP2020.
Short-term accommodation in the Medium and High Density Residential zones also continued
into the final version as publicly notified being a consistent impact use throughout the zones.
The short-term accommodation provisions for the Rural and Rural Residential zones also
continued into the final version as publicly notified in the second draft.
Part 3 discusses in detail the provisions of the adopted NP2020.
2.8.3 Draft Short Stay Letting Local Law issues
In 2019 Noosa Council initiated the preparation of a first draft local law for short stay letting to
manage the ongoing use of lawfully operating short-term accommodation properties. The first
draft was publicly notified concurrently with the second draft of NP2020.
A number of detailed issues were identified relevant to both the local law as well as the
preparation of NP2020 and new provisions around short-term accommodation and a home
based business (home hosted accommodation). The key issues identified in submissions
included:
Increased investor interest to purchase dwellings specifically for short stay letting
Use of dwellings for visitors and commercial gain, not housing residents
Impacts on housing supply and affordability
Increase property and rental prices
A lack of local management with many properties managed from a distance
A disregard for local residential amenity
Noise and disturbances
Hours and use of outdoor areas
Guest behaviour
Party houses
Lack of complaint management
Loss of neighbours and sense of community
Increased occupancy and population
Impacts and strain on infrastructure
Overcrowding of dwellings, guest safety
Increased traffic
Resident parking impacts and illegal parking
Increased waste
Pet management
Lighting
Environmental impacts
The local law was put on hold following the public notification stage as the Queensland State
Government had commenced a process for a state wide approach to managing short-term
accommodation. The then Mayor of Noosa Council was involved in a reference group for the
state approach.
pg. 68
Noosa Council Monitoring Report 2022/23
Section 70
With the onset of COVID 19 the state government’s priorities changed and the matter was not
progressed.
Council finalised its own local law approach which is further discussed in Part 3.6.1
2.9 Initial COVID-19 impacts –June 2020
Just prior to, and throughout the 2 year period of Noosa Plan 2020 commencing, the COVID-
19 pandemic created global, national, state and local upheaval with unprecedented economic,
employment, tourism, housing and social impacts.
The first confirmed case of COVID-19 in Australia and Queensland was January 2020 and
saw the first stages of quarantining introduced for returning travelers from China. The first
stages of international travel restrictions were also starting to emerge, particularly with the
World Health Organisation’s announcement that COVID-19 was a pandemic in March 2020.
As a consequence, Australian governments responded with forced lockdowns, border closures
and cancellation of major events.
The following sections outline the initial impacts of COVID -19 from March 2020 prior to the
commencement of Noosa Plan 2020 on 31 July 2020. Further impacts following the
commencement of Noosa Plan 2020 are addressed in Part 3 of this report.
2.9.1 Movement of people
Changes to the movement of people occurred during the early stage and throughout COVID-
19, both externally to and from Australian and internally between states, cities and regions.
2.9.1.1 Border closures
The closure of Australian borders to non-citizens and non-residents, social distancing and the
required closure of non-essential businesses effectively shut down the tourism industry for 8
weeks from March 2020, including the Easter period.
Latter March saw the closure of Queensland borders to non-essential travelers and domestic
flights to the Sunshine Coast were suspended. Non-essential travel was essentially banned.
Throughout April and part of May 2020 most communities in Australia were in lockdown and
domestic borders were closed.
Late May and June 2020 saw the easing of some travel restrictions and activities. However
significantly, Queensland’s borders remained closed to visitors for some time, but during
periods of border easing, there was movement of people from states worse affected by
COVID-19 lockdowns, particularly from Victoria and New South Wales.
2.9.1.2 Internal migration
The ABS Regional internal migration estimates, provisional for June 2020, stated that 85,500
people moved interstate in the three months to the end of June 2020, which was 14,800 less
compared with the June 2019 quarter. Notwithstanding this, capital cities had a net lost of
10,500 people from internal migration, the largest quarterly loss on record.
Queensland gained the most people through net internal migration and Victoria lost the most
in the June 2020 quarter, with Brisbane having the greatest net gain at 3,189 and Melbourne
and Sydney having the highest net loss of 7,994 and 6,378 people respectively, as shown in
Table 31 in Appendix 8.
The HNA2021 identified that:
pg. 69
Noosa Council Monitoring Report 2022/23
Section 71
The ABS reports that the SA4 of Sunshine Coast (of which Noosa is part) received a
net gain of 6,230 people through internal migration in the 2019-20 financial year…
…The real estate industry is also reporting a large proportion of new residents from
interstate (particularly Melbourne) given the impact of COVID19 on the livability of their
home city.
2.9.1.3 Overseas migration
Historically, overseas migration data showed a pattern of variability over time, due to the ever
changing global and domestic factors affecting migration, COVID-19 added to this variability.
From 2006 to 2020, net overseas migration contributed more each year to Australia's
population growth than natural increase (births minus deaths).
The ABS data on Overseas Migration for the 2020-2021 year, identified that
Overseas migration 2020-21 -there was a net loss of 88,800 people - the first loss since
1946 and second lowest on record
Immigration fell 71% to 145,800 from 506,900 arrivals a year ago
Emigration fell 25% to 234,600 from 314,200 departures a year ago
A decline was recorded in net overseas migration in every state and territory in 2020-
21.
There were changes in travel behaviour of those who had arrived prior to the pandemic but
were impacted by it and various travel restrictions introduced in Australia. For example,
Australian-born migrant arrivals increased from September 2019 to March 2020. This was
largely due to some Australian expatriates having changed their travel plans after arriving in
Australia on a short trip and remaining in residence beyond 12 months. Due to this, some then
met the 12 month duration rule to be counted as an overseas migrant arrival.
2.9.2 Economy and employment
The economy and employment was severely affected globally, nationally, regionally and
locally through the COVID-19 period. Below is a brief summary of the local impacts seen in
Noosa in the early stages of COVID and prior to the commencement of NP2020.
2.9.2.1 Gross regional product
Impacts of COVID-19 to the June 2020 quarter were not available, therefore the September
2020 are used in this discussion. Id. Demographic Resources identified that comparison
forecasts from the September 2020 quarter to the September 2019 quarter showed Noosa’s
tourism dominated economy and employment had substantial impact following the COVID 19
restrictions.
GRP was 3.3% lower, which was greater than that experienced by Queensland as a whole
and local jobs were down by 7%, equating to 1,895 jobs.
pg. 70
Noosa Council Monitoring Report 2022/23
Section 72
Figure 19 Covid impacts September 2020 – Noosa Shire
In the Septemebr 2020 Quarter Noosa’s GRP experienced a greater impact than regional
Queensland and Queensland generally, but faired well compared to the rest of Australia.
Impacts on local jobs (including for residents) was high compared to the rest of Queensland
and Australia, as shown in Figure 15 in Appendix 8. Accommodation and food services were
highest hit with a loss of 1,755 jobs.
2.9.2.2 Employment
The June 2020 quarter saw the highest impacts on local job losses in Noosa in accommodation
and food services, but a corresponding growth in healthcare and social assistance, shown in
Figure 16 - 18 in Appendix 8.
2.9.2.3 Place of work
Widespread lockdowns and the dramatic shift of many office based employees to working from
home impacted where and how people worked allowing for many non-frontline or essential
workers to effectively “work from anywhere”.
Whilst the true figures are unknown, employment that could be undertaken from home was
directed by the state government to do so, and many of those jobs have remained at home,
recognising the value of work from home on work life balance and to an extent time and cost
efficiencies.
There was also a movement of workers from other states and cities to regions utilising the
ability to work from anywhere and home, including anecdotally to Noosa. The full impacts of
this were not realised until later with demand for housing affecting rental vacancies and
property values.
2.9.3 Tourism sector
The ABS – A series of unprecedented events – June quarter 2020 stated:
The year ending January 2020 saw a record 9.5 million visitors arrive in Australia.
Tighter restrictions from 20 March resulted in a dramatic fall in visitor arrivals, of close
to 100%, with only 5,400 visitor arrivals in June 2020. In all three months of the June
quarter, New Zealand was the largest source country, accounting for 27% of visitor
arrivals in June, 35% in May and 16% in April. The changing pattern of overseas
arrivals and departures had a profound impact on business conditions across the June
quarter.
pg. 71
Noosa Council Monitoring Report 2022/23
Section 73
2.9.3.1 Overnight visitation and spend
Tourism Noosa’s 2019 – 2020 Annual Report (2019/20 TNR) identified that while COVID 19
restrictions impacted the tourism industry globally, the decreases Noosa saw were not as
significant as regional, state and national impacts. Domestic overnight spend and visitation
decreased less in Noosa than the Sunshine Coast and Queensland generally.
At the year ending June 2020, Noosa’s total number of visitors was down by 11.6% compared
to the rest of Queensland which was down by 19.3% and Australia, 18.8%. Total visitor spend
was down by 11.8% in Noosa, compared to the rest of Queensland at 18.8% and Australia at
18.7%
Figure 20 Annual Change in Domestic overnight visitation and spend – Noosa Shire
Source: Tourism Noosa Annual Report 2019/2020
Notwithstanding this, the 2019/20 TNR stated the suspension of direct flights from Auckland
to Sunshine Coast cut off the Sunshine Coast’s major international market, and the reduction
in capacity of Qantas and Jetstar severely impacted holiday travel to Noosa.
Statistics in the 2019/20 TNR for the year ending June 2020 contained domestic overnight and
day-trip information as no international data was available due to global border closures. The
annual figures include visitation from September, December 2019 and March 2020.
The Noosa region attracted just under 2 million domestic visitors in the year to June 2020,
including overnighters and day-trippers who spent almost $882m. This was a 15% decrease
in visitors and 11% decrease in spend on the previous year.
pg. 72
Noosa Council Monitoring Report 2022/23
Section 74
Source: Tourism Noosa Annual Report 2019/2020
The 2019/20 TNR stated that the annual decrease came through the June quarter when
domestic and international borders were closed due to COVID-19 restrictions. Borders were
closed in Queensland from 3 April and non-essential travel was then banned. Day trips (with
no overnight stay) were allowed early May for up to 50km extended to 150km mid May.
Overnight travel was permitted from 1 June. The June quarter (three months only), felt the
impacts of COVID -19 and compared with the same period, the 2019, 2019/20 TNR showed
the following decreases for the 3 month period:
• Domestic overnight visitors: -65.4% (interstate visitation -97%, intrastate visitation -44.2%).
• Day trip visitors: -53.4%.
Further, .Id community Demographic Resources identified there were 3,582,686 domestic
visitor nights and 698,151 international visitor nights in Noosa Shire, with an additional
1,060,901 domestic day trips for the 2019/2020 year. This was down from the 2018/2019 year
of 3,950,072, 976,2017 and 1,288,879 respectively, a result of COVID-19 restrictions.
2.9.3.1 Tourist accommodation
The early impacts of COVID-19 restrictions, particularly international and domestic state
border closures from March, directly impacted the tourist accommodation sector. With
domestic visitor nights down by 65.4% and international borders closed, the take up of tourist
accommodation of all types was also down. In addition, 1,755 job losses were identified in the
accommodation and food sectors.
Restaurants were required to shut down in-house dining with only takeaway options available.
Restaurants re-opened with greatly reduced seating capacity in June/ July, with full capacity
much later.
There was no specific data breakdown on how this affected tourist accommodation other than
assuming a relationship between the reduction in visitor numbers and take up of
accommodation, which was significant particularly in the March -Jun 2020 quarter following
the initial lockdowns.
From the spike in availability of rental accommodation in April 2020 shown in section 2.9.4.1
below, following the lockdowns, and from an increase in “for lease” signs, some short-term
accommodation moved temporarily into the permanent rental pool, whilst most probably
remained vacant for 2-3 months.
Anecdotally it was also known that the internal migration of people from other states into
Queensland and the ability to work from home saw some of the vacant short-term
accommodation taken up and vacancy in the rental market taken up for longer temporary stays
greater than 3 months. Returning expats taking up temporary residence in holiday homes or
rentals was also experienced.
pg. 73
Noosa Council Monitoring Report 2022/23
Section 75
2.9.4 Housing
The supply and use of dwellings for short-term accommodation directly affected the supply
and availability of dwellings for permanent occupation by residents, in terms of rental supply,
vacancy and sales price.
2.9.4.1 Rental vacancy rates
The Housing Needs Assessment 2021 (HNA2021) identified changes in the rental market that
can be attributed to the initial COVID -19 restrictions between March and June 2020 and
corresponding availability and higher rental vacancy rate of dwelling stock normally used for
short-term accommodation in April 2020. A sharp drop in vacancy followed in June 2020
onwards correlating with easing of border closures and domestic travel restrictions, net internal
migration, and return of dwelling stock back to short-term accommodation use.
Following this period rental vacancy rates were at an all time low and unprecedented demand
for rental properties from locals and interstate migrants saw unsustainably low supply and
price increase. Refer to commentary and Figures 20-22 in Appendix 8.
2.9.4.2 Rental bonds
In relation to the numbed of rental bonds, the HNA2021 found there was an increase in rental
bonds in the early part of 2020, corresponding with the initial border closures and lockdowns:
… There has been much discussion about the impact of COVID19 on the availability
of rental accommodation in Noosa Shire. What this data shows is that from early 2020
there was actually an increase of RTA bonds. When international borders and some
state borders closed there were investors who transitioned properties from holiday
letting to long term tenancies so the quantum of rental accommodation actually
increased for a period. From late 2020 it has been dropping again, but not significantly
below the levels of 2019. In combination with the vacancy rates, this means there is
still a significant number of properties being rented, however competition is much
stronger than it once was, largely a result of increased interstate migration…. Since
mid-2020 there has been unprecedented demand for rental properties. Rental prices
have increased to levels that are not sustainable on local incomes, particularly single
person wages.
2.9.4.3 Housing prices
The effects of COVID-19 saw residential property transactions fall substantially in the eight
capital cities during the June 2020 quarter. The residential property price index fell -2.2 % in
Sydney, -2.3% in Melbourne and -0.9% in Brisbane.
The ABS – A series of unprecedented events – June quarter 2020 stated:
COVID-19 restrictions and uncertainty drove a sharp decline in housing market activity
that led to large falls in the value of new housing loan commitments in April and May,
with the May fall (11.6%) being the largest in the history of the series. June saw some
recovery with a rise of 6.2% in housing loan commitments.
Whilst there was an initial fall in property transaction in the early stages of COVID 19 – the
market quickly changed with an unprecedented housing boom and substantial property price
growth and property transactions in Noosa.
pg. 74
Noosa Council Monitoring Report 2022/23
Section 76
2.9.4.4 Home builder grant
Part of the economic stimulus package by the Federal Government included the Home Builder
Grant for new home builds or renovations above $150,000 to homes the owner would occupy.
The HNA2021 stated:
This was probably of most relevance for major renovations in Noosa Shire as new housing
stock is limited and the renovation had to be $150,000 or more in value. At the same time
people chose to put money into their homes, stimulating the construction, landscape and
furnishings sectors. Community sentiment has been that it’s hard to secure trades people and
that building materials, floor covering, plumbing supplies, furnishings etc. are all increasing in
cost and decreasing in availability. The Urban Developer suggests that a construction supply
crisis is affecting residential development projects across the country as a critical shortage of
building materials delays commencement and completion of projects with cost blowouts along
the way. COVID19 has led to increased shipping costs and the 2019-20 bushfires through
Australia depleted supplies of structural pine, used for house framing.
pg. 75
Noosa Council Monitoring Report 2022/23
Section 77
Part 3–Commencement Noosa Plan 2020 July 31 2020
This part will provide:
an overview of the situation in Noosa and emerging issues during the first 2 years of
Noosa Plan 2020 operation;
an outline and review of the provisions of NP2020 relating to housing, short-term
accommodation, tourism economy and community well-being;
statistics on the economy, employment and tourism between July 2020 and July 2022;
housing needs identified by the 2021 Housing Needs Assessment and actions in the
Housing Strategy;
the extent and type of tourist accommodation as at July 2022;
the impacts from COVID 19 between July 2020 and July 2022.
3.1 Overview July 31 2020-July 31 2022
Noosa Plan 2020 (NP2020) commenced during the COVID 19 global pandemic and national
housing crisis, both of which impacted Noosa Shire during the entire first 2 years of its
operation.
Impacts from COVID 19 has seen, and will continue to see, significant changes for business,
technology and innovation, mobility and where and how people work, influencing the economy,
employment, housing and the tourism sectors.
In Noosa Shire, affects were particularly felt in the tourism and hospitality industries and both
the purchase and rental housing markets.
Noosa attracted many temporary and permanent sea changers over the last 2 years, escaping
harsh lockdowns in southern states, particularly from Victoria. Some short-term
accommodation properties moved back and forth between temporary occupation by residents
and short-term use depending on the lockdown restrictions and presence of tourists.
Nationally there was, and continues to be, a housing crisis, the effects of which are significant
in Noosa Shire. Demand for rental housing is outstripping supply with extremely low vacancy
rates fueling significant price increases in the rental market. The housing market also boomed
with demand for properties high, particularly from investors and relocations from southern
states, with significant price increases across all housing types and locations.
In early / mid 2022 the cost of living across Australia was on the rise with high inflation rates
prompting the Reserve Bank to increase the official cash rate multiple times from historic lows
during the peak of the COVID 19 pandemic.
In response to the housing crisis, Noosa Council prepared a new Housing Needs Assessment
in 2021 and Housing Strategy in 2022. Whilst there were varying community opinions on how
or indeed whether Council should be involved in the housing market, the overwhelming
response from the community was that short-term accommodation was the biggest issue for
housing availability and contributor to the housing crisis in Noosa.
Whilst the Noosa community was clearly recognising the impacts of short term accommodation
on housing supply and housing affordably, following the introduction of NP2020, quite a
number of property investors sought confirmation of existing use rights for short term
accommodation and superseded planning scheme applications were made for the use of
houses for short term accommodation. 85% of property owners of short term accommodation
are located interstate, overseas or in other Queensland locations and do note reside in Noosa
Shire.
In response to residential amenity issues arising from short term accommodation in residential
areas, in early 2022 Council introduced a new local law for short stay letting and home hosted
accommodation. A 24 hour complaints hotline was also established to record complaint calls
and engage with the contact person responsible for dealing with complaints at the property.
pg. 76
Noosa Council Monitoring Report 2022/23
Section 78
A number of new infill residential housing projects have been approved and commenced in
the last 2 years, particularly for small dwellings (up to 100sqm), meeting some demand for
smaller 1-2 bedroom permanent residential dwellings and small 3 bedroom dwellings.
However, with the current property boom, these dwellings are not considered affordable hitting
the market at $495,000 for the smallest 1 bedroom units up to $1.2m for 3 bedroom small
dwelling units.
Businesses have been experiencing significant labour shortages, a result of recent lockdowns,
staff being ill or disqualified from working, a lack of overseas and seasonal workers and a lack
of affordable and available accommodation. A lack of affordable housing in the rental market,
for all workers, not just key workers in the tourism and hospitality markets, is now being
experienced. Council has found it difficult to recruit workers in a range of occupations, with
housing supply and affordability being a key issue.
The tourism sector, including events have generally bounced back in Noosa with continued
increases in overnight stays and day visitors. Whilst a few hospitality businesses closed in the
last 2 years, which is not unusual, a number of new restaurants and bars and other businesses
have opened, particularly in Noosa Junction.
A new Economic Development Strategy was prepared in 2021 focusing on diversifying the
economy and moving Noosa towards a “smart” biosphere with growth in high value low
environmental impact industries, and being less reliant on volatile industries such as tourism,
retail and hospitality.
In response to growing pressure on the road network, particularly from day visitors driving into
Noosa, and as part of Council’s transport strategy, the free holiday buses were extended to
include weekends. In addition, a number of road infrastructure projects commenced to alleviate
pressures on the network, and in the case of Noosa Parade heading to Hastings Street, cycle
paths and wider pedestrian paths introduced.
For the community, whilst the positive benefits from tourism and events are acknowledged,
the negative impacts on housing supply and affordability from short term accommodation and
impacts on the road network from increased visitor traffic has affected resident lifestyle,
amenity and ability to find affordable suitable housing, all which are some of the biggest issues
facing Noosa going forward.
3.2 Noosa Plan 2020
As noted in Part 2, Noosa Plan 2020 underwent two draft iterations of the plan regarding the
approach to short-term accommodation and application of the Tourist Accommodation zone,
both of which had implications for housing. The following commentary is relevant to those
aspects of NP2020 with the relevant extracts contained in Appendix 9.
This section looks at the provisions in NP2020 and critically assesses the impacts on housing
supply and tourist accommodation, including short term accommodation.
3.2.1 Strategic Framework
The strategic framework sets the policy direction for the planning scheme and forms the basis
for ensuring appropriate development occurs in the planning scheme area for the life of the
planning scheme and includes a number of maps for various strategic intents.
3.2.1.1 Strategic Intent
Like former planning schemes, NP2020 recognises Noosa Shire’s role as being both a
domestic and international tourist destination with its population increasing by over 15,000
people during the holiday peaks, and tourism and retail being significant contributors to the
pg. 77
Noosa Council Monitoring Report 2022/23
Section 79
economy. However, it goes on to seek a more diversified and sustainable economy in the
future. It recognises Noosa’s desirability as a place to live and visit as stemming from a strong
and passionate community, environmental management, planning regime and development
sector.
The coastal area is identified to support the bulk of Noosa’s resident population and visitors
with potential combined future resident and peak visitor populations reaching 78,000 people.
The strategic intent refers to the previous planning scheme setting, which was built around the
carrying capacity philosophy, and whilst NP2020 continues that philosophy by limiting
development to within existing urban boundaries, it is clear from current experience that Noosa
may have already reached its carrying capacity at peak times.
The strategic intent is very clear in its need to support greater diversity of housing choice,
particularly smaller dwellings, for both existing and future populations, particularly Noosa’s key
workers and aging population, with ageing in place, affordability and access to services and
transport being a key outcome. Infill development for smaller multiple dwellings in existing
urban areas is identified as the way to increase housing supply and diversity to meet future
needs.
However, whilst the strategic intent recognises the limited dwelling supply is increasingly under
pressure from both permanent residents and visitors –it continues to identify existing and future
vacant sites for visitors only, at the exclusion of residents.
The strategic intent is not clear in giving a high level direction and a hierarchy of uses for the
residential and Tourist Accommodation zones. It is particularly lacking in direction as to
whether future development is for permanent residents or visitors in each zone to address the
competition of dwelling stock between them.
Further examination of the high level strategic provisions in NP2020 is required to clarify the
hierarchy of, and landuse for Noosa, particularly in recognition of the current housing crisis
and existing supply of tourist accommodation. A further assessment of the relationship
between landuse and the road network in particular is also required, using the peak scenario
of combined resident and visitor populations.
The relevant sections of the strategic intent are contained in Appendix 9 to this report.
3.2.1.2 Strategic Outcomes
Like the Strategic Intent, the strategic outcomes should be a lot clearer on the relationship and
hierarchy of landuses as they relate to permanent housing for residents and tourist
accommodation, including the potential impacts on housing stock and the impacts on
residential amenity and community wellbeing.
Relevant strategic outcomes are contained in Appendix 9 to this report and discussed below.
Community Wellbeing
The community wellbeing outcomes are generally good, however Noosa residents have
expressed some of the negative impacts associated with dwellings being used for short-term
accommodation, including sense of belonging and community, safety and residential amenity,
all of which are contributors to community wellbeing. These matters are not covered by the
outcomes and should be included in the Community Wellbeing outcomes.
Housing Choice
The housing choice outcomes are generally good however, the protection of visitor
accommodation should not be an outcome for housing choice. Reference to “housing” needs
to be clarified that it refers to permanent residential housing and not visitor or short term
pg. 78
Noosa Council Monitoring Report 2022/23
Section 80
accommodation. Reference to the protection of visitor accommodation in this section should
be relocated to the economy and employment section and replaced with an outcome that
protects residential housing stock as a priority.
Additional outcomes should be included to support housing outcome, such as there should be
no net loss in permanent housing supply, permanent residential housing takes precedence
and priority over visitor accommodation in residential zones.
Economy and Employment
The outcomes sought for Noosa’s economy and employment is very much focused on a
diverse and resilient economy with a high economic yield and low environmental impact with
sustainable practices and clustering of like businesses. The outcomes are future focused on
new technologies and industries and diversified employment and locations that are flexible
including co-work spaces and home enterprises. The focus is largely diverted from the historic
and past reliance on tourism and a tourist related economy, to a new more diversified
economy.
Visitor centres are identified as an integral and important part of the economy and employment,
with limitations on future growth in tourism uses particularly in Hastings Street. The outcomes
do not seek to necessarily grow the tourism industry either in the existing centres or outside of
existing centres.
Outcomes regarding tourist accommodation outside of the visitor centres should be elaborated
on particularly regarding its relationship and mix with residents and mitigation of negative
impacts from tourism activities on residential housing stock for permanent residents and
residential amenity and wellbeing.
3.2.2 Definitions, Zone purpose, outcomes
This section deals with the relevant zones, corresponding purpose and outcomes and levels
of assessment for landuses related to housing and tourist accommodation in NP2020.
The relevant landuse definitions for housing, tourist accommodation and tourist activities and
the levels of assessment for each zone are included in Table 32 Appendix 9 to this report.
The landuse definitions provide clear distinction between dwellings for permanent residents
and various forms of tourist accommodation, and more specifically short term accommodation.
The landuse definitions in themselves are not of concern. The main concern is whether the
zone purpose and intent are being supported by the right landuses and levels of assessment.
The relevant purpose and outcomes for each zone are contained in Appendix 9 to this report.
Table 33 below provides an overview of how short term accommodation is dealt with in each
zone.
pg. 79
Noosa Council Monitoring Report 2022/23
Section 81
Table 33 Noosa Plan 2020 – Short term accommodation by zone
3.2.2.1 Low Density Residential zone
Overall, the Low density Residential zone purpose is very clear on the type and use of
dwellings acceptable in the zone and the outcomes clearly states the zone is for permanent
residents. This is supported by the Tables of Assessment by making consistent: dwelling
houses, home based business (home hosted accommodation), and limited short term
accommodation only where:
• in the applicant's principal place of residence;
• the letting of only one dwelling on site;
• occupied by short term guests on no more than 4 occurrences in any calendar year; and
• occupied by short term guests for a total of no more than 60 nights in any calendar year.
Otherwise short term accommodation of entire house on an ongoing basis is inconsistent
impact use in the zone.
The outcomes for the Low Density Residential zone do however, require further clarity to
support the zone purpose and the visitor uses permitted in the zone providing more outcomes
to be achieved for the limited 4 times / 60 days allowance for short term accommodation by a
resident and home hosted accommodation.
3.2.2.2 Medium and High Density Residential zones
The purpose and outcomes of the Medium and High Density Residential zones lack clarity as
to whether the zones are for permanent residents or visitors or a continued mix of both.
The zone purpose states it is for “medium density multiple dwellings” and “high density multiple
dwellings” both of which terms support permanent and short term occupation.
There is further confusion with the zone outcomes making reference to being “predominantly”
home to permanent residents as well as being “predominantly” for short-term accommodation
in established resorts and units. These outcomes are not mutually exclusive and appear to
conflict with each other with no hierarchy or priority given to permanent residential over short
term accommodation or vise versa. As noted in section 3.2.1.1 the strategic intent is also not
clear on this matter.
The Tables of Assessment support and makes consistent a mix of permanent residents and
visitors with: community residences, dwelling houses, dual occupancy, home based business
(home hosted accommodation), multiple dwellings, retirement facility, residential care facility,
rooming accommodation and short term accommodation being consistent uses in the zone.
pg. 80
Noosa Council Monitoring Report 2022/23
Section 82
The Medium and High Density Residential zones are the primary locations for smaller multiple
dwellings for permanent residents and provide the greatest opportunity for the provision of
smaller affordable dwellings in the future. Continued allowances for short term accommodation
in these zones will continue to deplete existing and future dwelling stock for permanent
residents.
These zones also have the highest number of unoccupied private dwellings left vacant or used
for short term accommodation. Given Noosa’s land supply for multiple dwellings is limited and
opportunities for future development relies on infill or redevelopment in these zones, the uses
permitted in the zone should reflect the main purpose of the zone being for permanent
residents. The desired outcomes for these zones should be clarified and not ambiguous and
a review of the purpose and outcomes and the corresponding table of assessment is required,
in the context of meeting the housing needs of residents as a priority.
Whilst it is noted that historic development in much of these zones allowed for both permanent
or short term use of dwellings, development rights and approvals continue despite future
planning schemes changes.
A review of the zone allocations between Medium and High Density Residential and the Tourist
Accommodation is also warranted to ensure the zones are applied to achieve the future
desired landuse intent, (either for residents or visitors) not historical development.
It should be noted the Semi-attached Housing zone in the former NP2006 (Medium Density
zone equivalent) protected the zone for permanent residential dwellings and did not support
short term accommodation in the zone. The first draft of NP2020 protected land in both the
Medium and High Density Residential zones outside of the “short stay” mapped area for
permanent residents at the exclusion of short term accommodation. The final version of
NP2020 took a different approach identifying short term accommodation as a consistent
impact assessment use throughout the zones.
3.2.2.3 Tourist Accommodation zone
The main intent of the Tourist accommodation zone is to provide for a range of tourist
accommodation types and facilities to support tourists. However, the purpose statement
focuses only on short term accommodation and supporting uses for short term
accommodation. The zone outcomes are correctly much broader and clearer on the types of
development in the zone, which includes a range of tourist accommodation types. The
outcomes are clear, by its silence, that the zone is not intended for permanent residential
development.
However the tables of development supports and makes consistent: dwelling houses,
caretaker’s accommodation, community residences, multiple dwellings (unless identified a site
identified for visitor only), nature based tourism, resort complex, short term accommodation,
tourist park and tourist attraction.
Despite the zone outcomes making no reference to permanent residential development, the
tables of assessment allow permanent residential housing (multiple dwellings) in the zone
(except for specifically excluded sites), undermining the main purpose and outcomes of the
zone. (Noting that dwelling houses and community residences must be permitted in the zone
by state planning regulations).
As the Tourist Accommodation zone is the primary zone supporting tourist accommodation,
further clarity of its purpose and outcomes are required and better supported by the tables of
development to safe guard future supply of tourist accommodation and avoid ongoing potential
landuse conflict with permanent residents.
As noted above, a review of the zone allocations between the Tourist Accommodation zone
and the Medium and High Density Residential zones is warranted to ensure the future landuse
intent, not past development approvals, is correctly applied through the zoning provisions.
pg. 81
Noosa Council Monitoring Report 2022/23
Section 83
3.2.2.4 Rural Residential zone
The Rural Residential zone is clearly for “residential uses” however the zone supports and
makes consistent: dwelling houses, community residences, home based business, nature
based tourism and short term accommodation.
Despite the purpose of the zone providing for residential uses, land in the zone can be used
for short term accommodation and nature based tourism which don’t require a resident to
remain on site. Statistics show there has been an increase, whilst low numbers, in the use of
land in the Rural Residential and Rural zones for tourist accommodation purposes.
Whilst it is unlikely there would be extensive conversion of properties from permanent
residential to short term accommodation, the Rural Residential zone contributes significantly
to the provision of housing for permanent residents, and the zone is not intended for the sole
purpose of tourism.
Consideration should be given to making any form of tourist accommodation and short term
accommodation an inconsistent use unless the resident remains on site, to safe guard the land
primarily for permanent residential uses as a priority.
Note: At its meeting on 18 August 2022, Council resolved to consider limiting short term
accommodation of a dwelling house to sites over 4ha in response to amenity concerns,
however it was determined by staff this matter needed to be dealt with in the broader landuse
context of the appropriateness of all forms of tourist accommodation, including short term
accommodation and nature based tourism, neither of which require a resident on site, as part
of this report.
3.2.2.5 Rural zone
The purpose of the Rural zone is clearly primarily for rural uses and activities with other
complementary compatible uses. The additional uses are further expressed in the outcomes
with a number related to the provision of a range of tourist accommodation types. The zone
supports and makes consistent: caretaker’s accommodation, community residences, dwelling
houses, home based business, nature based tourism, rural workers accommodation, short
term accommodation, tourist park, function facility and tourist attraction.
Similar to the issues raised above for the Rural Residential zone, nature based tourism, short
term accommodation, tourist park, function facility and tourist attraction are consistent uses
which do not require a resident to remain on site. Whilst it is unlikely there would be mass take
up and conversion of rural lands for tourist purposes, rural land contributes to housing stock
for permanent residents, and its primarily purpose is for agricultural purpose occupied by
residents, with additional value added complimentary uses.
As with the Rural Residential zone, provided the resident remains on site a range of supporting
visitor accommodation would be appropriate, but the conversion of rural land for the sole
purpose of visitor accommodation compromises the zone intent and supply of housing stock.
Any proposals where a resident was not to remain onsite should require impact assessment.
3.2.2.6 Centre zones
Whilst not a specific consideration for this report, it should be noted the Major and Local Centre
zones both support a range of housing types as well as short term accommodation uses. The
District Centre zone only allows for short term accommodation on specified sites, otherwise it
is an inconsistent use.
Further consideration should be given to the purpose of the Centre zones in relation to the
provision of small dwellings for permanent residents and provision of tourist accommodation.
As there is already a specific Tourist Accommodation zone for tourist accommodation in a
mixed use format, there is considered no need to compromise the centres’ contribution to new
pg. 82
Noosa Council Monitoring Report 2022/23
Section 84
small dwelling housing stock, by allowing short term accommodation. The Centres zones will
become a key part of the provision of future housing supply and small dwellings and should
be retained for this purpose as a priority over any provision of tourist accommodation.
Short-term accommodation for temporary workers / non-resident workforce who are not
necessarily tourist should also be considered further.
3.2.3 Local plans
The Local Plan Codes provide more detail in terms of the specific development and landuse
outcomes sought for each locality. Overall, there is inconsistency between the desired landuse
outcomes as they are discussed for each zone and specific locations and the overarching zone
provisions and tables of assessment. In particular, the outcomes in the locations related to the
provision of permanent dwellings and short term and tourist accommodation are not supported
by the range of consistent uses in the zones.
Specifically, the outcomes sought for permanent housing in the Medium and High Density
Residential zones is not supported by the tables of assessment, which compromise this
outcome by allowing for short term accommodation in the zones.
A brief overview of the outcomes sought by each local plan is outlined below.
3.2.4.1 Hinterland Villages
Hinterland villages of Pomona, Cooran, Kin Kin and Boreen Point are described as vibrant
rural or lakeside villages with unique character and identity. Development is to maintain the
rural amenity enjoyed by both residents and visitors and businesses provide for residents and
visitors.
In Boreen Point, development remains small and water activities attracts tourists to the area.
3.2.4.2 Cooroy
Cooroy is described as a vibrant energetic town centre which supports both hinterland
residents and visitors. Development is to maintain the country town feel and whilst low to
medium density semi-attached housing is to be dispersed through residential neighbourhoods.
Visitor accommodation and tourist attractions are to be compatible with the character of the
area.
3.2.3.3 Tewantin
Tewantin is described as a vibrant traditional town influenced by its heritage and river setting
with low key and low rise buildings. The outcomes sought for the town centre support both
residents and visitors and mixed use development with residential uses. Despite its gateway
role to Noosa North Shore the outcomes state Tewantin is home for permanent residents
without “substantial: short term accommodation”. Specifically, it states the Low Density
Residential zone is for permanent residents and the medium density residential zone provides
for a diversity of housing types for permanent residents.
3.2.3.4 Noosaville
Noosaville is identified as having a role in providing much of the commercial, retail ,
administrative and social needs of the coastal urban area and a major focus for visitor
accommodation and services. Small dwellings in a mixed use format are identified for the
District Centre zone.
The Low Density Residential zone is identified as primarily accommodating permanent
residents in detached houses. Bed and Breakfast accommodation can locate in residential
zones.
pg. 83
Noosa Council Monitoring Report 2022/23
Section 85
The Medium and High Density Residential zones are to accommodate a diversity of housing
including dual occupancies, multiple dwellings, retirement facilities and residential care
facilities. Development is required to ensure permanent residents enjoy high levels of
residential amenity.
The Tourist Accommodation zone is identified for visitor accommodation and associated uses
for visitors with Gympie Terrace as the primary tourism focus.
3.2.3.5 Noosa Heads
Noosa Heads is identified as an area having a strong tourism focus with Noosa Hill
accommodating residential neighbourhoods and visitor accommodation and Noosa Junction
providing a range of goods and services for residents and visitors. Quamby Place is identified
as convenience goods and services for residents and visitors and the Mixed Use Precincts in
Hastings Street and Noosa Junction provides for entertainment.
The Low Density Residential zone is identified for permanent residents in detached houses
and the Medium and High density residential zone are to accommodate a diversity of housing
including dual occupancies multiple dwellings, retirement facility and residential care facilities.
Residents in Noosa Heads are identified as enjoying a high level of residential amenity.
Housing for students and hospitality workers are identified in or within proximity of Noosa
Junction and small dwellings in a mixed use format in activity centres.
Noosa Heads is identified as the principal focus for visitor accommodation, specifically in
Hastings Street and specific resort sites. The tourist accommodation zone is identified for
visitor accommodation and associated uses. Bed and Breakfast accommodation can locate in
residential zones.
3.2.3.6 Coastal Communities
The Coastal Communities include Sunshine Beach, Sunrise Beach, Castaways Beach,
Marcus Beach and Peregian Beach. The overarching relevant outcomes state that Sunshine
Beach, Sunrise Beach and Peregian Beach activity centres provide for the convenience needs
of residents and visitors. Sites identified for tourist accommodation are identified for to be
retained and development for diversity and choice of visitor accommodation. Bed and
Breakfast accommodation can locate in residential zones.
The Low Density Residential zone is identified for permanent residents in detached houses
and the Medium and High density residential zone are to accommodate a diversity of housing
including dual occupancies, multiple dwellings, retirement facility and residential care facilities.
More specifically:
Sunshine Beach is identified as providing multi- unit accommodation for both residents and
visitors, whilst retaining the supply of permanent housing and not reducing residential amenity
for residents.
Sunrise Beach is identified as providing a high proportion of detached houses and some multi-
unit accommodation for permanent residents, with facilities provided for resident needs.
Castaways Beach and Marcus Beach are identified as providing predominantly detached
housing for permanent residents.
Peregian Beach’s centre is to provide local convenience shopping for both permanent
residents and visitors and multi-unit accommodation locates near the centre. The Medium
Density Residential zone on western side of David Low Way provides for mixed uses.
The outcomes sought for Sunrise, Marcus and Castaways Beaches are clearly for the
provision of housing for permanent residents.
The outcomes sought for Peregian Beach are for the provision of multi-unit accommodation in
close proximity to Peregian Beach local centre and the Medium Density Residential zone on
the western side of David Low Way is for mixed uses with residential.
pg. 84
Noosa Council Monitoring Report 2022/23
Section 86
3.2.5 Tourist accommodation approvals
Since the commencement of NP2020 there have been many superseded planning scheme
approvals, development approvals and confirmation of existing use rights to undertake short
term accommodation. There have also been some approvals for other forms of tourist
accommodation.
Separate to NP2020, the Short Stay Letting and Home Hosted Accommodation local law
approvals process has also given approval for the operation of short stay letting further
discussed in section 3.6.1.
As a home based business (home hosted accommodation) is accepted development subject
to requirements, the number of properties undertakings this form of tourist accommodation is
somewhat unknown, however approval under the Short Stay Letting and Home Hosted
Accommodation is also required which should identify properties.
3.2.4.1 Short-term accommodation superseded planning scheme approvals
Under section 29 of the Planning Act 2016, for a period of 12 months up to 31 July 2021,
applications were made to Council requesting assessment for the use of a dwelling house for
short term accommodation under the superseded planning scheme provisions of Noosa Plan
2006. Under the former provisions, the detached house definition allowed for short term
accommodation as accepted development.
214 dwelling houses were successful in this application, securing short term accommodation
use rights which must commence within 6 years of Council’s decision notice.
Table 34 Superseded planning scheme approvals
Location Superseded approvals for STA accommodation in a
dwelling house
Noosa Heads 76
Noosaville 34
Sunshine Beach 61
Sunrise Beach 12
Marcus Beach 6
Castaways Beach 4
Peregian Beach 13
Noosa North Shore 7
Tewantin 1
TOTAL 214
3.2.4.2 Existing use rights confirmation for short term accommodation
Many dwellings had a history of use for short-term accommodation prior to Noosa Plan 2020
coming into effect. Changes to the Low Density Residential zone, making short term
accommodation an inconsistent impact assessable use, gave rise to a many claims for existing
use rights for short term accommodation. To confirm existing use rights, written advice
requests were made to Council.
pg. 85
Noosa Council Monitoring Report 2022/23
Section 87
116 applications were made to Council with 108 confirming existing use rights for short term
accommodation.
Following the commencement of the Short Stay Letting and Home Hosted Accommodation
Local Law, lawful use rights were also confirmed through the application process where
approvals for short stay letting were given, addressed separately in section 3.6.1.
Table 35 Existing use rights confirmation by written advice
Location Existing use rights confirmation by written advice
Noosa Heads 35
Noosaville 11
Sunshine Beach 36
Sunrise Beach 9
Marcus Beach 2
Castaways Beach 4
Peregian Beach 7
Noosa North Shore 2
Tewantin 2
TOTAL 108
3.2.4.3 Development Permits for short term accommodation
A number of MCU applications were made for short term accommodation under the provision
of NP2020, with 18 approvals issued as at 31 August 2022.
Table 36 MCU approvals for short term accommodation NP2020
Location Short term accommodation approvals
Noosa Heads 1
Noosaville 3
Sunshine Beach 3
Sunrise Beach 1
Peregian Beach 2
Cooroy 1
Pomona 1
Tinbeerwah 1
Kin Kin 1
TOTAL 18
pg. 86
Noosa Council Monitoring Report 2022/23
Section 88
3.2.4.4 Development Permits for other tourist / visitor accommodation
The following MCU approvals were issued for other forms of tourist accommodation as at 31
August 2022.
Table 37 MCU approval for other tourist accommodation NP2020
Approval type Location Number of Number of Beds / sites
approvals Dwellings
Nature based Pinbarren 1 3 3
tourism
Tourist park Cooroy 20 sites
(new approval but existing
site)
At the time of writing this report, additional commercial tourist accommodation projects are
proposed and at different stages within the development assessment system:
a 106 room 5 star boutique hotel resort is being considered by Council at 61 Noosa
Springs Dr Noosa Heads;
a 178 room and 12 suite hotel and 15 x 3 bedroom villa application (Callile Hotel) has
been lodged at 3-7 Serenity Close, Noosa Heads as a change application to an expired
approval;
a 16 self contained eco cabin application for short term accommodation at 142 Noosa
Drive Noosa Heads as part of RACV is currently at information request stage; and
preliminary discussions had taken place on the redevelopment of 203-207 Gympie
Terrace for a 49 room hotel, conference room and commercial uses.
These proposals support unmet demand for hotel style and 5 star accommodation in Noosa
Shire and may result in approximately 345 additional hotel rooms in Noosa Heads and
Noosaville and 15 luxury style 3 bedroom villas and 16 eco cabins.
3.2.5 Residential housing approvals
A number of residential approvals for a range of permanent dwellings (excluding dwelling
houses) were issued under NP2020 as at 31 August 2022. Of particular note was the uptake
of the small dwelling bonus gross floor area provisions under NP2020 producing 188 small
dwellings (<100m2) in the residential zones. 19 small dwelling were also approved in the centre
zones where dwellings are limited to small dwellings. Also noted was approval for 3 multiple
dwellings from visitor only occupancy to permanent occupancy.
pg. 87
Noosa Council Monitoring Report 2022/23
Section 89
Table 38 Residential housing approvals NP2020
Approval type Location Number of Dwellings
Caretaker’s accommodation Lake Macdonald 1
Pinbarren 1
Dual occupancy Tewantin 10
Sunshine Beach 4
Sunrise Beach 2
Cooroy 2
Noosa Heads 4
Noosaville 4
Peregian Beach 2
Multiple dwelling Tewantin 28
Sunshine Beach 5
Cooroy 14
Noosa Heads 19
Noosaville 172
+ 3 from STA to permanent
Residential care facility Noosa Heads 20 beds
3.2.6 Summary of provisions and outcomes of Noosa Plan 2020
Noosa Plan 2020 supports the provision of housing for permanent residents, the provision of
tourist accommodation and tourist related activities and a more future focused and diverse
economic and employment base.
In particular, NP2020 continues to support short term accommodation and growth in other
forms of tourist accommodation, particularly hotels at key vacant sites dedicated for tourist
accommodation, and land within the Low Density Residential zone is protected for permanent
residents.
During its first 12 months in operation, 214 dwelling houses gained superseded planning
approval to operate short term accommodation, and during the first 2 years, 108 properties
gained written advice confirming existing use rights for short term accommodation, 18
properties received MCU approval for short term accommodation and an additional 23 nature
based and caravan sites were approved.
In addition, a key site is under consideration for the delivery of 106 five star hotel rooms and 2
major key sites have had discussions for the potential delivery of an additional 239 hotel rooms
and 15 luxury villas, all meeting an unmet demand for 5 star and hotel style accommodation.
268 permanent residential dwellings and 20 residential care beds have been approved. The
small dwelling bonus provisions have been successfully taken up with 188 of the approved
dwellings being small, meeting an unmet demand for smaller housing types. In addition, 90
small dwellings are under consideration at the Noosa Shire Business centre.
Overall, the residential housing provisions in NP2020 have been taken up and successfully
delivering the housing outcomes sought by the plan. Notwithstanding this, the provisions
around short term accommodation in zones of which the purpose is housing permanent
residents, have been somewhat ambiguous and conflicting within varies parts of the planning
scheme, and contribute to housing supply issues.
pg. 88
Noosa Council Monitoring Report 2022/23
Section 90
In particular, NP2020 continues to allow for a mix of visitor accommodation with permanent
residential housing throughout, continuing competition and potential depletion of permanent
housing stock and landuse conflict between permanent residents and visitors. This has
implications for both long term housing supply and long term tourist accommodation supply.
NP2020 also contains some conflict between the outcomes sought by the local plans, the
zones and tables of development. For example, the allowance for short term accommodation
in the Medium and High Density Residential zones undermines outcomes for permanent
dwellings for residents expressed through the local plans.
Likewise, the Tourist Accommodation zone is for the purpose of accommodating various types
of tourist accommodation and tourist related uses, however multiple dwellings for permanent
residents are permitted in the zone compromising the zone’s intent and long term provision of
tourist accommodation.
With limited land supply and redevelopment opportunities, the competition for dwelling stock
between residents and visitors is the key issues going forward. Therefore, a review of short
term accommodation being permitted within zones whose primary purpose is for permanent
housing, and the allowance for permanent dwellings in the Tourist Accommodation is required
to ensure the long term integrity of each zone.
The Strategic intent and outcomes need to support any changes made to the zones and the
permitted uses to provide clear direction on how and where housing for residents will be met
now and in the future.
Likewise, the current and longer term provision of a range of tourist accommodation needs to
be clearly articulated in terms of its location and relationship to permanent residential housing.
3.3 Housing Market 2020-22
This section addressed the housing market situation following the introduction of NP2020
including the impacts from COVID 19.
Since the commencement of NP2020 Australia has been experiencing a national housing
crisis. Noosa’s housing market has been particularly hit hard with extremely low rental vacancy
rates fueling increased rental prices and significantly increased housing prices.
This prompted Council to prepare a new Housing Needs Assessment in 2021 (HNA2021) to
better understand the housing situation and housing needs of Noosa residents, followed by a
Housing Strategy in 2022.
Notably, the HNA2021 did not include an assessment of tourist accommodation needs, unlike
the 2017 Housing Needs Assessment which saw tourist accommodation as part of the overall
housing needs for Noosa Shire.
3.3.1 Housing Needs Assessment 2021
Since the completion of the Briggs & Mortar HNA2017 report, the 2021 Housing Needs
Assessment identified a number of significant changes in the Australian housing market
including exceptionally low interest rates, holiday homes being a form of investment and 20%
deposit required for purchasing property making it difficult for first home buyers.
COVID 19 was also a significant impact in the housing market. Ex-pats returned to live in local
properties and there was an exodus from southern capital cities to regional lifestyle areas,
particularly Queensland
Locally, the HNA2021 identified a noticeable increase in the number of dwellings being offered
for short term holiday letting and conversely, increased pressure on holiday resorts to
accommodate permanent residents, particularly one and two person households due to lack
of availability in residential areas. A large number of properties changed ownership in the
pg. 89
Noosa Council Monitoring Report 2022/23
Section 91
2020-2021 period with some properties exiting the permanent rental market for owner
occupation. Demand for housing and permanent rentals far exceeded supply.
Since the HNA2021 was prepared a number of increases to interest rates have also occurred,
affecting the housing market, and state and international borders reopened.
The 2021 Housing Needs Assessment was prepared prior to the 2021 census data release
and therefore relied on statistics from the 2016 census.
3.3.1.1 Housing characteristics
Despite changes to the broader housing market described above, overall, the key
characteristics of Noosa’s housing stock and household structure did not change between the
HNA 2017 and the HNA2021. Small households and larger homes of 3+ bedrooms continued
to dominate housing supply and demand, with a range of housing options not being met:
Housing stock in Noosa is noticeably dominated by medium to large detached houses
plus semi-attached or attached housing of at least three bedrooms. Older units are
more likely to be two bedrooms.
… Housing, in all forms, is limited and as demand outstrips supply, more and more
members of the community struggle to find housing suitable to their needs and
circumstances.
As the cost of land has significantly increased over the last couple of decades, the
construction cost of individual dwellings has also noticeably increased with a smaller
number of high-end units being developed in preference over a higher number of small
modest units. In some cases, lots which could yield two or three dwellings are
developed for one new house and separate adjoining house blocks have been bought
and consolidated to allow for a larger home and outdoor recreation space.
…A larger floor plate results in more bedrooms, more bathrooms, multiple living areas,
outdoor entertainment areas and a double lock up garage.
Conversely the majority of households are made up of just one or two people and there
is no expectation this would change. However even small households with the means
prefer larger dwellings for both resale investment and for the ability to accommodate
guests.
3.3.1.2 Housing supply
There is some tension between the HNA2017 and HNA2021 statistics in relation to number of
total private dwellings and occupied private dwellings, with the number of total private
dwellings decreasing between 2011 and 2016, which is not the real case. There appears to
have been changes to some statistical division boundaries and variation interpretation in data
collection particularly around the inclusion or exclusion of dwellings deemed as visitor only.
Recent 2021 census statistics on occupied and unoccupied private dwellings have also been
included in this section, which weren’t available at the time of the HNA2021 preparation.
Occupied dwellings and dwelling structure in HNA2021
The HNA2021 identified a total of 24,815 total private dwellings, 18.8% of which were
identified as unoccupied on census night, suggesting these properties are left vacant or used
as visitor / short term accommodation, and not occupied by permanent residents. Despite the
tensions between the statistics in the HNA2017 and HNA2021, this suggests an increase in
unoccupied dwellings over the last 5 years.
pg. 90
Noosa Council Monitoring Report 2022/23
Section 92
The number of new dwelling approvals over the 2006-2016 time period were not reflected as
occupied private dwellings, with the number of occupied apartments falling considerably during
that time, suggesting increased take up for short term accommodation or holiday home
investments.
The HNA2021 identified the proportion of unoccupied private dwellings was highest in Noosa
Heads at 36.68%, followed by 28.36% in Sunshine Beach, 27.72% in Peregian Beach - Marcus
Beach, 19.65% in Noosaville and 11.26% in Noosa Hinterland. Only Tewantin had a figure
lower than the State at 7.64%.
The HNA2021 stated:
…The 2011 Census had shown 20,713 occupied private dwellings on Census night.
The 18.8% of private dwellings (4,671 out of 24,815) were unoccupied across Noosa Shire on
census night, higher than the State 10.6% .
…the number of occupied private dwellings in Noosa Shire rose from 21,391 in 2006 to 22,110
in 2016. This difference of only 719 is not reflective of the number of new dwellings built over
that period…
Apartments accounted for 17.7% of occupied private dwellings in Noosa Shire in 2006 and
8.1% in 2016… actually fell from 3,776 in 2006 to 1,796 in 2016 despite new apartments being
approved over that period…
Following the 2021 census data release, which was not available at the time of the HNA2021,
up to date 2021 ABS Census statistics show 26,658 total private dwellings of which 4,810 were
unoccupied as shown in Table 39 Appendix 10.
Dwelling size and household size
Noosa’s average household size was identified in the HNA2021 as being 2.4 persons, with the
highest in Noosa Hinterland at 2.6 persons and lowest in Noosaville at 2.1 persons per
household. This is lower than the state average of 2.6 persons.
Most dwellings in Noosa Shire have more bedrooms than occupants with an increasing
number of couple only and lone person household, which varied considerable between Noosa
Hinterland and coastal localities. The HNA2021 stated:
… Between 2006 and 2016, the number of lone person households increased by
18%... number of couple only households increased by 18.3%. Couple only
households represented 31.9% of households in Noosa Shire… higher than the State’s
at 25.9%.
At 2016, 49.2% of families in Noosa Shire were couple families with no children. This
was high compared to 39.4% for the State where there was a higher proportion of
couple families with children.
At 2016 Noosa Shire had 2,267 one-parent families.
There was difference throughout the Shire with 58.1% of families in Noosa Heads and
57.4% of families in Noosaville being couple families with no children. Tewantin and
Sunshine Beach had higher proportions of one-parent families (18.9% and 18%
respectively).
At 2016, 29.6% of occupied private dwellings in Noosaville were lone person
households. The figure was only 19.5% in Noosa Hinterland.
Group households are less common in Noosa Shire, accounting for just 3.8% of
occupied private dwellings at 2016. Sunshine Beach and Noosa Heads had the highest
rates of group households.
pg. 91
Noosa Council Monitoring Report 2022/23
Section 93
Noosa Hinterland had the highest rate of multiple family households.
With regard to the relationship between dwelling size and household size, the HNA2021
identified a mismatch between household size and dwelling size, stating:
… the most frequent family size is two people.
Separate houses are most frequently three plus bedrooms and modern houses are
most typically over 275m2 in floor area. Semi-detached housing (such as duplexes are
most frequently three bedroom, followed by two bedrooms. Apartments or units are
more frequently two bedrooms…
3.3.1.3 Housing Tenure
Dwellings owned outright or being purchased
In terms of the tenure of occupied private dwellings, Noosa Shire has a considerably higher
proportion of dwellings owned outright than the state average which has grown been 2006 and
2016, with the highest rates in locations with higher proportions of older residents.
Correspondingly, there is a slightly lower proportion of dwellings being paid off through
mortgages or other schemes. Table extracts from the HNA2021 on tenure are included in
Appendix 10 as Tables 40-42. The HNA2021 states:
…In 2016 Noosa Shire reported a considerably higher proportion of dwellings owned
outright (39.1%) when compared to the State (28.5%). This proportion varied
throughout the Shire, and not surprisingly is highest in Noosa Heads and Noosaville
where there is a high proportion of older residents. However, it is also high in Noosa
Hinterland. The proportions were lower in the beach side SA2s, however still above
the State figures.
In relation to the occupied private dwellings being rented the HNA 2021 states:
In terms of the proportion of homes being rented, occupied private dwellings in Noosa
Shire were less likely to be rented, whether through a real estate agent, state housing
authority, person not in the same household, housing co-op/community/church or
otherwise. Further, the proportion being rented dropped by some 15% in the 2006-
2016 decade.
Each SA2 has figures lower than the State. Noosa Hinterland has the lowest with just
16.5% of occupied private dwellings being rented. The beachside SA2s had the highest
proportion of dwellings being rented.
… Around the time of the 2016 census 16,820 of the 30,153 rateable residential
properties (or 55.78%) were claimed to be a principal place of residence. At July 2021
there were 18,146 properties out of 30,915 (or 58.07%) categorised as principal place
of residence.
Noosa is a favoured place for second homes or holiday homes. Some of these are
available at least part of the time for short-term paying guests, and some are just
preserved for use by the owners, their family and friends. They are not typically
available for permanent rental accommodation.
During consultation on the new planning scheme many property owners relayed to
Council the reasons they chose not to make their properties available for permanent
tenants. These were both financial and lifestyle reasons. Most of them wanted the
flexibility to come stay in the property when they could but to leverage an income from
it at other times
pg. 92
Noosa Council Monitoring Report 2022/23
Section 94
3.3.1.4 Rental market
Median rents
For the 12 months ending 30 September 2021, the median weekly rents produced by the
Residential Tenancies Authority (RTA) included in the HNA2021 indicated Noosa’s median
weekly rent for a 1 bedroom unit was similarly priced to the rest of the Sunshine Coast and
Queensland. As the number of bedrooms increased however, the gap widened. The HNA2021
stated:
While median rents in Noosa Shire have typically been above State average over the
last decade the gap has widened. … runs a comparison of median rents for a three
bedroom house in Noosa Shire compared with the State.
Median weekly rents increased significantly in the 4 year time period since the original
HNA2017 was prepared. The Table 43 extracted from the HNA2021 contained in Appendix 10
show the change in rental prices for each housing type with the following key differences in
weekly rents across all localities in Noosa Shire between June 2017 and September 2021.
1 bedroom unit was $305-$340 per week in 2017 increasing to $385-$450 in 2021.
2 bedroom unit was $320-$420 per week in 2017 increasing to $480-$580 in 2021.
3 bedroom house was $413-$583 per week in 2017 increasing to $530 - $998 in 2021
4 bedroom house was $490-$695 per week in 2017 increasing to $700-$950 in 2021.
The HNA2021 compared these rental costs with income, stating:
These figures have increased substantially and are particularly high compared to the
income of employment in Noosa Shire. As an example at Census 2016 the median
total personal income in Noosaville SA2 for workers aged 15 years and over was
$41,491 per year (approx. $798 per week).
63.3% of workers were on less than $1,000 per week. Even considering potential wage
increase since 2016, this would make $480 for a one bedroom unit unaffordable and a
three bedroom house would cost almost the median income. This has considerable
implications for one or even two income households…
Rental vacancy rates
During the first half of 2021 the HNA2021 identified very low numbers of rental properties being
available, with less than 15 properties advertised for rent below $500 per week with a high
proportion being one bedroom units or granny flats. One of the impacts on the rental market
identified in the HNA2021 was internal migration, stating:
In January 2021 REIQ reported the two most popular destinations for interstate
migration were the Sunshine Coast and Gold Coast respectively. “Citing liveability,
affordability and lifestyle along with economic opportunities, education and an inclusive
society, the Sunshine Coast may be drawing big crowds but its rental market hasn’t
shifted in months, firmly gripped at 0.3%. Many areas such as…Noosa (0.4% rental
vacancies) and Sunrise Beach (0.5%) have continued to tighten marginally over the
last three months”.
… The surge in demand reportedly fueled by interstate migration and returning expats
as a result of Covid-19 and lockdowns in southern capitals…At the time Briggs & Mortar
were doing the previous Housing Needs Assessment (2016-2017) there was a vacancy
rate of around 2% or more.
Section 2.9.4.1 and Appendix 8 discussion on COVID 19 contains a number of rental vacancy
graphs extracted from the HNA2021 for postcode locations in Noosa Shire. Significantly, the
statistics show a strong relationship between demand for short term accommodation and the
availability of permanent rental properties.
pg. 93
Noosa Council Monitoring Report 2022/23
Section 95
Of particular note was the correlation between COVID 19 lockdowns and spike of increased
available rental stock for permanent occupation, marked by a quick drop in availability
coinciding with rental stock returning to the short term accommodation market.
3.3.1.5 Dwellings Sales Data
Like the rest of Australia, Noosa experienced significant increases in residential property prices
from late 2020 through to 2022. Demand for residential properties were very high in Noosa
Shire, with many properties sold sight unseen to interstate and overseas purchasers during
the COVID 19 lockdown period. The migration from capital cities to regional areas, returning
expats, record low interest rates and negative gearing policy contributed to this demand. It
was estimated about 10% of Noosa’s housing stock sold in the 12 months ending June 2021.
Table 44-45 in Appendix 10 contains the relevant table extracts from HNA2021.
The HNA2021 stated:
… the median sale price in Noosa LGA in the 12 months ending 31 June 2021 was
$900,000, which make it noticeably higher than other coastal LGAs in South East
Queensland.
The variation amongst the SA2s of Noosa Shire is quite noticeable with Tewantin
having the lowest median sale price of $700,500 while Noosa Heads and Sunshine
Beach both having median sale prices of over $1,300,000.
Taking Noosa Hinterland as an example, a twenty percent deposit on $780,000 is
$156,000. Stamp duty, conveyancing, insurance, moving costs etc are on top of this
and collectively make the exercise of home purchase extremely difficult for anybody
not already in the property market, especially if they are outlaying rent as they save a
deposit.
Another significant feature of Table 27 is the total number of dwelling sales within a 12
month period. For Noosa Shire the figure was 2,598 which is quite significant given the
2016 census suggested Noosa Shire had just 20,143 occupied private dwellings.
Noosa was often cited in commentary on the national housing market as performing extremely
well over the last two years. Record sale prices were consistently achieved. Of particular note,
was the Noosa Shire’s new house and vacant land sales prices were more than double the
Queensland state average.
In relation to the impacts of property price increases the HNA2021 states:
Generational inequity is often discussed in relation to housing cost. Housing costs have
increased compared to annual incomes making it increasingly more difficult to save a
deposit.
There is also a gender disparity given the reported difference in full time average
earnings between adult women and men. According to CoreLogic, based on the
average weekly full time earnings for men and women in Australia, it would take women
on this average income an additional 10 months to save for a 20% deposit on the
median dwelling value as at January 2021, compared with the average full time
earnings for men. Further, given that, at January 2021, women accounted for 67.2% of
Australians in part time employment, and only 37.9% of those in full time employment.
This disparity in total average earnings is even greater.
Conversely, interest rates are lower than they have been in the past, more government
grants and assistance packages are available and more dual income families exist than
previous generations.
pg. 94
Noosa Council Monitoring Report 2022/23
Section 96
3.3.1.6 Housing issues
The housing issues identified between the HNA2017 and HNA2021 were largely no different
other than becoming more heightened in the context of the national housing crisis, particularly
around matters of housing supply and housing affordability. Short term accommodation was
also more pointedly suggested in the HNA2021 as having an impact on the housing market.
The HNA2021 identified the following housing issues
Housing affordability, especially for low income households and key workers;
A lack of accessible or adaptable housing for older people and people with special
needs;
A mismatch of housing size and household size (albeit some may be by choice or
circumstance);
A shortage of affordable and appropriate aged accommodation;
A lack of housing diversity, and particularly smaller dwellings;
Low levels of social and emergency housing;
Conflict between holiday makers and permanent residents.
3.3.1.7 Housing needs
The HNA2021 identifies a number of unmet housing needs, stating that not all are in crisis
situation, but they may not be able to secure the type or tenure of homes to best meet their
needs.
The HNA2021 states:
Crisis or emergency housing is needed for individuals or families who are homeless or
at risk of homelessness, including those sleeping rough, victims of domestic violence
and people with complex support needs.
Small boarding houses or rooming accommodation would assist, as would secure
homes in well located areas with both day and night casual surveillance.
Low-income households including those with a disability need more public housing or
other social housing such as Specialist Disability Accommodation (SDA) share homes.
Low to medium income key workers need an increase in affordable rental housing
managed by community housing providers, rooming accommodation, studio units,
granny flats, shop-top housing and below market rental accommodation generally.
Unfortunately, the broader market of first-time home buyers, downsizers, growing
families and others are competing in a very tight market and unless they qualify for
some form of government assistance may not have their housing needs met in Noosa
Shire.
pg. 95
Noosa Council Monitoring Report 2022/23
Section 97
3.3.1.8 Short-term accommodation
The HNA2021 recognises the legacy issues of past planning schemes which allowed for the
proliferation of short term accommodation throughout residential zones and failure to protect
land for permanent residents. The continued issues around ongoing interchangeable use
rights for both visitor and permanent accommodation lead to no security of housing stock. The
lack of smaller dwellings for residents also lead to a take up of dwellings within “resort” style
accommodation compromising the onsite management businesses and tourist
accommodation offer.
Secondary dwellings and granny flats and other self contained dwellings meant for permanent
occupancy are also identified as being used for short-term accommodation, both hosted and
un-hosted.
The HNA2021 identifies the following issues regarding this:
short-term accommodation providing a higher return on investment leading to loss of
housing stock for permanent rental occupation
increased housing prices with greater competition of limited stock for permanent
purchase
creep of short-term accommodation uses into permanent residential areas causing
issues around residential amenity, health and well being impacts on permanent
residents
reduced permanent residents in some areas and certain streets reducing a sense of
community, feeling of safety and security
conflict between permanent residents and visitors etc.
3.3.1.9 Challenges and opportunities
By far, the key challenge for housing in Noosa is the competition and conflict of housing stock
between residents and visitors. It was clearly shown during the initial COVID 19 lockdown
periods there was a direct correlation between the availability of housing for rental purpose
and demand for visitor accommodation, with the highest return on investment often prevailing.
3.3.1.10 Meeting future housing needs
The HNA2021 identifies a range of ways to meet future housing needs, including Council
involvement in facilitating housing delivery and changes to planning scheme provisions.
Relevant to this report the HNA2021 notes that despite NP2020 being a new planning scheme,
significant changes had occurred in the housing market warranting amendments to assist in
facilitating better housing outcomes. The HNA 2021 identified the exclusion of short term
accommodation from the Medium and High Density Residential zones for further investigation
stating:
Existing multi-residential development in the medium and high density
residential zones has existing approvals that allow for its use as visitor or short-
term accommodation to continue. The purpose of Noosa Plan 2020 is to regulate
future development and does not need to retrospectively accommodate past
uses or approvals.
The limited opportunities for new development or redevelopment in the medium
and high density residential zones, highlights the importance that new
development should be for permanent dwellings at the exclusion of additional
short-term accommodation. Land is already set aside for visitor accommodation
pg. 96
Noosa Council Monitoring Report 2022/23
The text continues on section 98.