Attachment 1 - Needs Assessment Rev 0 11-11-16

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

Figure 2.2: Occupancy Rates, Beach Road Holiday Homes in Letting Pool (Two Dwellings)


70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

 0.0%
         Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16

Source: 2015-16 Occupancy records for two Beach Road Holiday Home properties.

An average occupancy rate of 22.8% is quite low, particularly after several years of
operation and, were the Beach Road Holiday Homes purely a commercial venture, it would
not be economically viable. However, as all 48 owners pay body corporate fees to maintain
common properties and facilities regardless of occupancy levels achieved (or even their
participation in the centrally managed letting pool – which most do not), the development is
not dependent upon achieving a “breakeven” occupancy level as might apply to other
resorts, hotels and motels for survival.
The indicative low occupancy level does not reflect owner use for holidays or use by friends
and relatives under private arrangement, which would probably increase the overall
occupancy of the Holiday Homes, but not (necessarily) the revenue generated.




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