Last week Prime Minister Anthony Alabanese announced a target of 1.2 million new homes—now developers and investors are looking at how to capitalise on nationwide attempts to reach this ambitious target.
The Federal government committed to $3 billion in performance-based Home Bonuses for states and territories that achieve more than their share of the million “well-located” homes target.
“All governments recognise the best way to ensure that more Australians have a safe and affordable place to call home is to boost housing supply,” Albanese said.
“[The 1.2 million target] is an additional 200,000 new homes above the National Housing Accord target agreed by states and territories last year.
“This will incentivise states and territories to undertake the reforms which are necessary to boost housing supply and increase housing affordability.”
Property investors such as Aware Real Estate, Aware Super’s property platform, have invested in specific areas of affordable housing—in Aware’s case, that of essential workers.
Aware Real Estate chief executive officer Michelle McNally said that Aware had highlighted residential as a long-term investment class, and currently has 500 apartments in its portfolio leased to essential workers.
“That program we started and run ourselves, because essential workers typically might not qualify for affordable housing under the government definition, but they are a section of the market that can benefit from this and being close to place of employment,” she said.
The definition of ‘affordable’ has certainly been a contentious subject given the cost of living rises recently, but it provides investors and developers with an opportunity to look at specific demographics within the affordable housing umbrella.
“For us it has shown some really positive aspects in terms of tenant retention and building a community around essential workers,” she said.
“We’re long term investors and probably really one of the few super funds directly investing in this at this point in time.
“The opportunity to lease to essential workers has definitely provided us with benefits in terms of turnover and leasing times and they are all positive to a mixed portfolio and outcome.”
Dig deep into the sector at The Urban Developer Affordable Housing Developer vSummit on Thursday, August 24.
