While housing affordability is a nationwide issue, residents of New South Wales feel the pinch more than anywhere and housing supply shortfall is to blame.
Sydney developer Coronation Property and its build-to-rent brand Nation are taking up the challenge to boost the Harbour City’s affordable housing supply with a beefed-up pipeline of affordable build-to-rent projects under way.
According to NSW Government data, a Sydney house in the 1980s cost an average of $78,900, which was about five times the full-time average wage.
Now, a Sydney house is 17 times more expensive, and represents about 14 times the average income.
It stands to reason that given the ability for many to afford a house, including servicing a loan on the back of last year’s series of rate rises, more people are looking to rent.
Under the National Housing Accord, NSW is required to add 75,000 new homes to supply this year, but not without a concerted effort from developers like Coronation Property, which is investing heavily in delivering a supply of well-located homes to the Sydney market.
The developer currently has about $5 billion in mixed-use projects planned or under way at Parramatta, Merrylands, Ashbury, Moore Point, St Peters and Erskineville, which is forecast to accommodate 7000 Sydney residents.
Coronation Property managing director Joseph Nahas knows only too well how inflation and interest rates are affecting budgets, which is why the builder-developer is committed to creating the right housing solutions in the right locations.
“We know a lack of housing availability and cost of living pressures are really impacting people living in Sydney,” Nahas said.
“Our build-to-rent properties are about providing tangible solutions to providing local affordable housing, particularly for key workers who are working in our hospitals.
“These people are travelling up to two hours just to get to work each day. We see build-to-rent in strategic locations close to hospitals as an important part of our remit as developers to help accommodate key workers.”
A study by the Australian Housing and Urban Research Institute demonstrated how housing affordability and the ‘commuting burden’ were intrinsically linked, where cheaper rents meant higher commuting costs for lower-income workers.
The research finds that low-income workers are spending a considerable percentage of their income on commuting costs—with low income workers in Sydney spending 8.6 per cent of their average income on travelling to and from work, while in Melbourne it’s almost 10 per cent.
“Our build-to-rent projects are aimed at creating greater density in well-connected, well-serviced urban areas that are close to major transport networks, schools and hospitals,” Nahas said. Coronation Property’s build-to-rent brand, Nation, is projected to deliver about 1500 apartments in Sydney by next year.
It recently entered into a conditional deal on a inner-city Sydney site for another build-to-rent project.
The 15,250sq m site at 67 and 73-83 Mary Street at St Peters has received planning permission for more than 200 build-to-rent apartments with 15,000sq m of retail and commercial space.
“This central site underscores our commitment to strategic urban development,” Nahas said.
“Its proximity to essential amenities and major transport networks makes it an ideal location for our latest build-to-rent offering.”
Nahas said key to creating a thriving build-to-rent offering was creating a vibrant community within and around the apartment complexes.
He said Nation had been established to meet the growing demand for secure, flexible rental solutions in a Sydney market that has become increasingly inaccessible for a vast number of renters.
Nation aims to provide a quality and accessible living experience for everyone, offering a diverse selection of apartments including fully furnished options and pet-friendly units, all supported by on-site concierge and maintenance teams.
Coronation’s subsidiary Nation is focused on delivering a customer-centric rental offering aimed at increasing the supply of high-quality, affordable homes to the Sydney market.
Nation’s first build-to-rent property in Merrylands will feature 425 apartments and is due for completion next month.
Its Parramatta City project will feature 123 apartments, and is slated for completion in April, 2024.
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