Home Rental industry Frustration as Queenstown stores remain empty despite rental demand

Frustration as Queenstown stores remain empty despite rental demand

0


[ad_1]

In Queenstown on the west coast of Tasmania, the number of shops on Main Street takes hold of a single developer group and then leaves them vacant.

That’s despite a real estate boom, a growing tourism industry, and a new TV show filmed nearby.

According to the West Coast Council, “an anecdotally high number” of business owners looking for retail space in the city couldn’t find it.

“Well above market” rental prices were cited as one of the contributing factors, as were negotiated terms that change or disadvantage businesses in unexpected ways.

Residents say they asked to rent the stores to John – whose number is advertised in the windows – but was categorically told no, or asked to pay rental prices they deemed exorbitant and unachievable for the area. .

Developers ask for “Hobart” prices

Anthony Brown of Destination West Coast said there was no shortage of demand.

“They’re empty because they’re charging what I consider to be Continental or Hobart prices for a city that isn’t at that level,” he said.

“When you walk down the main street it looks empty. That’s really not what we want to represent from a tourist point of view.

“We’re trying to grow, and in a growing city and a growing population, you need understanding, but there just doesn’t seem to be any.”

Store manager Sophie Suitor talks about the community’s frustration.

“What are they doing with them?

Shop owner Sophie Suitor fears empty buildings may be left derelict.(ABC News: Alexandra Humphries )

The West Coast Council tried to find a solution – a vacant housing tax was suggested to encourage landlords to rent buildings.

It might not solve the problem.

Rent prices have an impact on the valuation of a building, which means that a landlord may be better off keeping a building vacant than agreeing to rent it at a lower price, ensuring better long-term returns.

Many of the costs of this strategy are tax deductible.

Mayor Shane Pitt asked the developers to “come to the table” to find a solution.

“The rent they charge is quite high, and to open a new business it’s not easy,” he said.

“Interested in the dollar”

A shop window with a rental sign
The West Coast Council tried to find a solution, including a vacancy tax.(ABC News: Alexandra Humphries)

The Hobart-based company with many buildings, Delta Pi Pi Pty Ltd, declined an interview.

In a statement, the company said it bought the properties and modernized them after the local copper mine closed more than seven years ago.

He said they were available for rent at market rates and he wanted them occupied.

Mr Brown believes competing interests are at stake.

“The people who are here are here for a reason, they are part of the city and they immerse themselves in the city,” he said.

“It’s just when you have developers, they’re often not in the city, they’re not interested in the health and well-being of the city, they’re only interested in the dollar.”

[ad_2]