Fifteen new cabins to accommodate key workers will be built at Shipwreck Bay Holiday Park. The cabins, due to be completed by mid 2027, will help address a serious shortage of housing that is limiting the ability of Warrnambool businesses to attract and retain employees. At its August 2026 meeting, Council awarded two contracts for the project.
Frequently Asked Questions
What’s happening with key worker accommodation at Shipwreck Bay Holiday Park?
Fifteen new cabins to accommodate key workers will be built at Shipwreck Bay Holiday Park. There will be three one-bedroom, seven two-bedroom and five three-bedroom cabins, with a total of 32 bedrooms for workers. Construction will include demolition of the kiosk, minor vegetation removal (all Norfolk Pines will be retained), onsite drainage, internal roads construction, cabin installation and service connections (water, electricity, fire service, NBN, sewerage).
Three cabins will be compliant for use by people with a disability.
When will construction begin?
Civil works will begin by the end of August and be completed by Christmas 2026. The cabins will be installed between February and June 2027.
How is the project being funded?
The project was successful in attracting Victorian Government funding of $4.9 million through the Regional Worker Accommodation Fund (round one), which was announced in October 2024.
Council will contribute up to $700,000 to the project.
Why do we need key worker accommodation?
Numerous factors have triggered a critical housing shortage in Warrnambool. Key industries including healthcare, education, and construction, struggle to attract essential personnel, negatively affecting the community. As of 2026, Warrnambool has a 0.8% rental vacancy rate, a median weekly rent of $600 and a median house price of $660,000. To ensure continuity of services to the Warrnambool community and ongoing economic development, Warrnambool City Council and the Victorian Government are providing this new option for key worker accommodation.
Why locate the accommodation at Shipwreck Bay Holiday Park?
The Shipwreck Bay Holiday Park was chosen for the project because of its potential to increase the number of dwellings with required services already in place, its proximity to public transport, parkland, recreational activities, CBD and retail services. While the park is highly valued by guests over summer months, it is largely unused for the remainder of the year. Warrnambool City Council manages the Shipwreck Bay Holiday Park as manager of the Crown land through agreement with the Department of Energy, Environment and Climate Action. This land tenure arrangement has allowed the cabins to be built without the added cost of purchasing private land.
How will the use of the cabins be managed?
The cabins will be made available at market rates to organisations and businesses identified as key worker industries operating in the municipality through an expression of interest process. If after this expression of interest there are still some cabins available, cabins may be made available to individual key workers. There may be short periods where cabins are available as holiday accommodation (for example, if a school did not require a cabin for a teacher over the summer holidays) however their primary use will be as key worker accommodation for at least five years.
How have you considered the environment?
Environmental assessments, including arborists reports were undertaken during planning and design, and mitigation measures will be implemented to minimise impacts. No Norfolk Pines will be removed. The site will be landscaped.
Why is the kiosk being demolished?
The kiosk building is at the end of its useful life and would require significant upgrades to bring it up to current standards, including the removal of asbestos. A renovated or new kiosk was too costly to incorporate in the design. Options for a food truck area on the site are being investigated.
What disruptions may occur and how will they be managed?
Disruptions will be localised to the Shipwreck Bay Holiday Park area adjacent to Pertobe Road on the western end. During the delivery of the prefabricated modules, traffic management will be in place. Onsite works are expected to be paused or minimised dramatically for the second half of December and all of January.
Who will carry out the works and supply the cabins?
Warrnambool company Duggan Civil is the head contractor that will demolish the kiosk, remove vegetation, construct internal roads and carryout works for supply of water, electricity, fire services, NBN and sewerage.
Craftflex will design, construct, transport and install the cabins. They will also complete site landscaping and furnish the cabins. Craftflex are Melbourne-based company.
Who can I contact about this project?
Brady Hall, Senior Project Manager, email pmo@warrnambool.vic.gov.au or call (03) 5559 4800.