Mirvac announced today an initiative to tackle Sydney’s affordability issues by breaking down the barriers to home ownership faced by first time buyers.
At the unveiling of Pavilions, its proposed new 690 apartment project at the gateway to Sydney Olympic Park, Mirvac addressed two key issues of affordability and supply by offering first home buyers an exclusive opportunity to be the first to purchase 60 of the lowest priced apartments. These first home buyers will also be able to exchange on just 5 per cent deposit, half the usual requirement.
Mirvac CEO and Managing Director Susan Lloyd-Hurwitz said Sydney’s high prices have reached the point where a generation of young people faced the prospect of never owning their own home.
“This is not a simple problem with a simple fix however Mirvac is taking the first of many steps towards a solution with the introduction of The Right Start by Mirvac,” said Ms Lloyd-Hurwitz.
“There are a number of barriers that first home buyers face including the high deposit hurdle and a competitive market, and we can start to address these issues right now and give hope to first home buyers who’ve given up on the dream of home ownership.”
The Right Start by Mirvac package will apply to approximately 60 apartments priced to qualify for the Government’s First Home Owner grant and / or stamp duty concessions. First time buyers will be able to pay 5 per cent on exchange, half the usual deposit, and the remaining 5 per cent in two annual instalments. This secures the property while the first home buyer continues to save for the full 10 per cent deposit.
The 60 Right Start apartments are priced from $575,000 to $749,000.
Whilst Mirvac is known for their long term and repeat customer base, the offer to first home buyers is an opportunity to also welcome a new generation of Mirvac customers.
Mirvac is in discussion with a lending institution who will work with the Group to offer Right Start buyers competitive lending terms, conditional loan pre-approval and a savings regime for deposit instalments.
The first home buyer initiative is in addition to the 21 affordable apartments that will be handed to Sydney Olympic Park Authority.
NSW Planning and Housing Minister Anthony Roberts said he was encouraged to see the industry addressing housing affordability.
“The NSW Government has made housing affordability a priority issue but, it is a problem that has to be tackled on many fronts,” said Mr Roberts.
“Mirvac has demonstrated that developers can also assist by introducing socially responsible schemes such as putting aside a percentage of properties for key workers and first home buyers while we work on the longer term issues.
“Most critical of those issues is supply and we have taken a number of steps already to remove bottlenecks in the planning system and ensure a good planning outcome.
“Sydney Olympic Park is one of our priority areas where we have produced a draft revision of the masterplan that will provide homes for around 23,000 people, with more parks and open space and more retail. The proposed project that Mirvac is unveiling today will provide around 690 new homes where they are needed most.
“Not only will it support our Plan for Growing Sydney but it will boost employment in the region with 900 construction jobs over the life of the project.”
Pavilions features around 690 apartments in four buildings ranging in height from nine to 31 storeys, priced from $575,000 to around $2,000,000. The majority of apartments have spectacular views to the CBD, Parramatta River, the Blue Mountains and Sydney harbour as well as the surrounding 430-hectare parkland.