The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
InfrastructureEditorial DeskWed 30 Sep 20

Affordable Housing Pitched as Core Investment Strategy

TUD+ MEMBER CONTENT
41605246-b404-41ef-9cb3-717f7c9a3613
SHARE
20
print
Print

As well as creating much-needed public housing stock, well-structured affordable housing investment products can have a similar risk profile to infrastructure.

Affordable housing is increasingly being pitched as a core strategy for investment, as super fund interest and longer-term infrastructure investors look to alternative asset options.

The recently-rebranded Aware Super is the latest super giant to enter the sector, launching a 102-unit project—50 per cent of which will be dedicated to affordable stock—in southern Sydney’s Miranda earlier this month.

Formerly First State Super, the super fund has spent $250 million in affordable housing, joining Cbus and Australia’s largest superannuation fund Australian Super lending to the sector.

Australia’s shortfall of affordable housing stock is growing at a rate of 150,000 per year. And with the biggest contraction in GDP since the 1930s and growing unemployment, Covid-19 has only exacerbated the issue, Investec’s Nils Miller says.

Miller, who is speaking at The Urban Developer’s upcoming affordable housing vSummit, says more government support is needed.

“A major stumbling block for this sector has been the ‘funding gap’ between revenue from rents paid by low-income tenants and the cost of developing and maintaining good-quality housing.

“Infrastructure investors are long-term investors, and typically seek a lower, more consistent return than developers.

“To make this model viable investors need government support to mitigate risk and provide land that can be developed into integrated communities.”

Related: Social Housing Provides Economic ‘Bang for Buck’


While no major announcements have been made on public housing in the lead up to Tuesday’s federal budget, the government’s National Housing Finance and Investment Commission has a large portion of its $1 billion infrastructure loan facility left to spend.

For now, the facility provides finance for eligible infrastructure projects that unlocks new affordable housing supply.

The NHFIC, which functions as a bond aggregator to support affordable and social housing, recently finalised a $100 million agreement with the NSW Land and Housing Corporation.

“This agreement will [support the] delivery of 781 new social and affordable homes at significant development sites across Sydney,” NHFIC chief executive Nathan Dal Bon said.

Dal Bon is joining The Urban Developer’s upcoming affordable and social housing vSummit on Thursday 8 October to discuss Covid-19’s impact on policy and investment in the sector.


More information on the Affordable and Social Housing vSummit is available here.


ResidentialAffordable & Social HousingAustraliaFinanceReal EstatePlanningPlanningEvent
AUTHOR
Editorial Desk
More articles by this author
ADVERTISEMENT
TOP STORIES
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
View All >
Kangaroo Point Aria Canopy House Revised DA Approval hero
Development

Aria’s Revised Tower Greenlit for Inner-City Kangaroo Point

Phil Bartsch
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
Warren and Mahoney's rendering of Leftfield's project at 691-693 Burke Road, in Melbourne's Camberwell.
Residential

Leftfield Lifts Cover on 14-Storey Scheme at Camberwell

Marisa Wikramanayake
The 57-apartment proposal at Camberwell comes as Melbourne’s move toward densification gain pace...
LATEST
Kangaroo Point Aria Canopy House Revised DA Approval hero
Development

Aria’s Revised Tower Greenlit for Inner-City Kangaroo Point

Phil Bartsch
3 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Warren and Mahoney's rendering of Leftfield's project at 691-693 Burke Road, in Melbourne's Camberwell.
Residential

Leftfield Lifts Cover on 14-Storey Scheme at Camberwell

Marisa Wikramanayake
3 Min
Third.i Crows Nest Dolls House render EDM
Build-to-Rent

Thirdi Scraps Office Tower for Crows Nest Over-Station Site

Vanessa Croll
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/affordable-housing-attract-institutional-interest