As Queensland grapples with a housing crisis marked by vacancy rates below 1 percent, the looming 2032 Olympic Games have intensified the urgency for more accommodation in Rockhampton and Yeppoon. Local tourism organizations and the regional council are now eyeing abandoned properties as a potential solution.
Data from the Australian Bureau of Statistics revealed that 192,393 properties were vacant on Census night in 2021, representing 8.7 percent of the state’s total dwellings. In Rockhampton, the seven-storey Plaza Hotel, with its 66 rooms, has been intermittently closed over the past decade, much to the frustration of local officials.
“Unfortunately, it doesn’t send a good message at all. Everyone is dealing with homelessness, people sleeping in the parks and on the streets,” said Grant Mathers of the Rockhampton Regional Council. The council recently enforced a Public Health Order in court to clean up the hotel site, highlighting the legal avenues being pursued to address the issue.
Current Housing Crisis and Its Implications
According to the Real Estate Institute of Queensland’s 2025 Residential Vacancy Rate Report for the June quarter, 34 out of 50 regions in the state have rental vacancy rates at or below 1 percent. Rockhampton’s rate stands at a mere 0.7 percent.
“Most parts of regional Queensland are sitting at well below what we consider to be a healthy range, [which is] one that sits between 2.6 up to 3.5 percent,”
said REIQ CEO Antonia Mercorella. She noted that this is not an issue isolated to Queensland, as tight vacancy rates are a national concern.
While there is community interest in converting vacant hotels to permanent rentals, Mercorella explained the complexities involved. “The hotel may not be licensed for that purpose, and there could also be zoning and other council-related regulations that could prevent that,” she said, adding that legislative obligations for residential properties could pose additional challenges.
Tourism and Short-term Accommodation Needs
Tourism operators are also feeling the pinch, particularly with the 2032 Olympics on the horizon. Mary Carroll, CEO of Capricorn Enterprise, expressed frustration over the lack of short-term accommodation. “When it comes to freehold land, it can be really frustrating for organizations like mine,” she stated.
The closure of the Capricorn Resort in Yeppoon in 2016, which left 331 rooms unused, exacerbates the situation. Research from Tourism Events Queensland last year indicated a need for 1,219 short-term accommodation rooms in the Rockhampton and Capricorn Coast region before 2032. However, much of the existing accommodation is occupied by fly-in fly-out workers on major infrastructure projects.
“We are desperate for these new short-term rooms because I’m losing short-term accommodation in unit complexes to long-term bookings,” Carroll explained, noting the impact of projects like the Rockhampton Ring Road.
Planning for the Future
With Rockhampton set to host Olympic rowing and canoe sprint events, the demand for accommodation is expected to rise further. Carroll emphasized the need for updated research to assess future requirements, given current high occupancy rates.
“We’re waiting for that work to be redone to see what that figure will be,” she said. Meanwhile, Mercorella highlighted the broader implications of the housing crisis, stressing the need for creative solutions to ensure both the success of the Olympics and the continued housing of the local population.
“We really need to be thinking about how we’re going to be creative about ensuring that we have adequate accommodation,”
Mercorella commented, urging careful planning to balance the needs of residents and transient visitors.
As the countdown to the 2032 Olympics continues, Rockhampton and Yeppoon face a critical juncture. The challenge lies in addressing immediate accommodation shortages while laying the groundwork for sustainable housing solutions that will benefit the region long after the games have concluded.
