Frasers Property Australia and Mirvac will develop the first two affordable housing projects in Brisbane under the Queensland government’s build-to-rent program.
The apartment buildings will be located in the inner-Brisbane suburbs of Newstead and Fortitude Valley, with construction expected to commence mid-2021 following the finalisation of the projects’ design.
The developers’ appointment comes two years after the Queensland government announcement of a $70 million build-to-rent scheme in late 2018.
Under the agreement, Frasers Property will develop a 25-level building comprising 354 apartments at 210 Brunswick Street, Fortitude Valley.
The agreement also covers Mirvac’s site at 60 Skyring Terrace in Newstead, comprising 390 apartments.
Combined, the two projects will comprise 744 apartments with around 243 dwellings to be provided at a discounted rent.
How it works
The scheme involves the state partnering with the private sector to deliver low-rental homes and provide affordable key-worker housing options to the inner city.
Developers were asked to build properties on privately-owned land, which involved the state government then subsidising rental payments.
The build-to-rent program will help provide long-term rental accommodation for tenants who don’t necessarily qualify for access to social housing, but could struggle to live close to where they work, Queensland education minister Grace Grace said of the announcement.
“We will meet part of the rent cost for the affordable homes to allow a discounted market rate to be offered to eligible tenants like health and emergency service workers,” Grace said.
On completion, Frasers Property will own and operate their development, with the state government subsidising the rental of 144—or 40 per cent—of the apartments by 25 per cent.
The remaining 210 apartments in the building will be offered at market rental.
Approximately 99 affordable housing apartments are included in Mirvac's Newstead project, which will be offered to eligible tenants at a 25 per cent discount to market rent.
State treasurer Cameron Dick said the two CBD fringe sites had been chosen based on proximity to amenities and major employment, with the two projects pegged to create more than 400 jobs during construction.
“At a time when private investment and construction has slowed due to the pandemic, our Build-to-Rent initiative will support 440 full-time jobs over two years,” he said.
When complete the Fortitude Valley apartment tower will stand 25-storeys high. It will comprise 42 studio apartments, 188 one-bedroom, 124 two-bedroom apartments, and include basement parking.
Frasers Property Australia’s chief executive Anthony Boyd said the expected three-year construction program was likely to be complete by the end of 2024, with resident leasing opportunities opening at that time.
Mirvac, led by Susan Lloyd-Hurwitz, constructed its first build-to-rent complex in Sydney’s Olympic Park. It also has plans for a 33-level build-to-rent tower on the former Melbourne Convention Centre site, on the corner of Spencer and Flinders streets.
“We are delighted at the opportunity to partner with the Queensland Government to facilitate the establishment and growth of the Build-to-Rent sector as a viable long term property asset class in Queensland,” Lloyd-Hurwitz said.
Further south of Brisbane, Homecorp Property Group will join with Morgan Stanley to complete a $200 million build-to-rent precinct at the 2-6 Capital Court site at Varsity Lakes.
The project marks the first purpose-built project at the Gold Coast.