GEON is the initiator of North Queensland’s first rental housing development, headquartered in Townsville.

A vacancy rate of 1 per cent has prompted the Brisbane developer to target the asset class at its Fairfield & Co property at 1 D’Arcy Drive in Idalia, about 6km south of the central business district.

Plans have been filed for two towers designed by Cox Architecture, each of which will feature 294 apartments and 652 square meters of retail, commercial and community space, and will be located on the same site as the shopping center.

The project will be developed by GEON and managed by its subsidiary GEON Living.

GEON Living chief executive Dan Moore said this was the developer’s first project to be developed to build a rental apartment and the first of its kind in Townsville.

“This is another step in our journey to create modern, sustainable housing that reflects the changing needs of today’s residents,” Moore said.

“Fairfield & Co is a renowned retail, entertainment and lifestyle destination in North Queensland and our build-to-rent project will take the precinct to the next level.”

▲ The towers will be located within the commercial district.

Moore said an application for a building permit was filed with the city this month.

Townsville has experienced strong regional growth, with the vacancy rate falling below 1 per cent last year. The average weekly rent for a flat is $536.

The developer will look to take advantage of the area’s low vacancy rate and young population — the median age of residents in the area is 35.

“This development is in line with our vision to create a truly integrated, mixed-use development that will encompass both residential and non-residential uses that will benefit both residents and the broader community,” Moore said.