Plans to transform an abandoned aged care complex into affordable housing in North Queensland have been scrapped by the state government — and an expert says it highlights the problems with converting not-for-purpose buildings into housing.
Key points:
- The state government says the conversion is unsuitable due to the facility's condition and the "cost of repair and refurbishment"
- A housing expert says converting not-for-purpose buildings is a stop-gap measure but not a permanent solution to the housing shortage
- He says commercial buildings are often expensive or impossible to convert
Amid a national housing crisis, an investigation by the state government and Townsville City Council found the Blue Care Pallarenda Garden Settlement site at Pallarenda was not suitable for conversion.
The facility was closed in 2016 and patients were moved to a new site around 10 kilometres away in the suburb of Mount Louisa.
The complex of 25 buildings has since sat vacant, falling into disrepair and becoming a target for vandalism.
Converting not-for-purpose buildings
Converting existing buildings like student accommodation or former aged care homes into social housing has long been touted as a solution to the nation's ongoing housing crisis.
UNSW housing research and policy professor Hal Pawson said the use of not-for-purpose buildings was not a silver bullet.
"It's not a solution to the housing crisis of course, but it can be something that's quite useful to expand the stock of … temporary housing … [as] a stopgap for people that that need it," Professor Pawson said
"If a building has some sort of self-containment, [like] residential units, that is definitely something that's going to make it a lot more feasible."
Commercial properties a challenge
Professor Pawson said older buildings were often difficult to convert into housing due to rigorous building codes, which vary across the country.
He also warned commercial properties may be difficult to convert into housing in the future due to lighting, layout and plumbing costs.
"There is a bigger issue here … as a result of COVID we haven't fully yet come to terms with the fact that there's probably a permanent reduction in demand for commercial office space.
"In our major cities — working from home is now a permanent feature of some people's lives.
"It's not particularly apparent yet, because commercial buildings tend to be on longer five, or maybe 10-year leases.
"It has implications for financial institutions, for all of us, because our pensions are tied up in the value of commercial buildings — we have yet to fully grasp these changes."
Government 'continuing to invest' in new social housing
A spokesperson for the Department of Housing said it was important any temporary accommodation sites provided value for money for the government's investment of public funds.
"In the case of Garden Settlement at Pallarenda, Department of Housing staff inspected the [site] and determined it was unsuitable due to its condition and the level and cost of repair and refurbishment required," the spokesperson said.
"While we investigate opportunities for new temporary accommodation, we are continuing to invest in new social housing in the region.
"QuickStarts Qld will see 237 new social homes commenced in North Queensland by June 30, 2025, through a planned investment of $74.2 million, supporting more than 235 full-time equivalent jobs.
However, a spokesperson for the site's custodian Uniting Care said the group was still in discussion with the state government regarding future uses of the site.