A groundbreaking State Government plan to increase rental housing supply in the inner city has been backed by the private sector.
Planning and Infrastructure Minister Alannah MacTiernan today announced
Golden Sea Property Development and Heyspring Land would develop four sites in Northbridge with the potential to provide at least 85 long-term rental units.
Under the new model, developers would transform land purchased from the State Government, bound by a contract of sale that ensured the residential component was maintained as dedicated rental housing for a minimum of 10 years.
Ms MacTiernan said the new model was believed to be a first in Australia.
It showed the State Government was taking a multi-layered approach to the issue of housing affordability.
“The long-term rental model is a terrific example of how the Government and private sector can work together to improve the supply of rental housing,” she said.
“We believe there’s a niche market in long-term property for investors such as superannuation funds and property trusts to take on these sites which combine rental income and capital growth over the medium to long-term - and the substantial response we received to the Expressions of Interest (EOI) process confirmed this.
“We’re now in the process of identifying similar sites in and around the city for this model, as well as sites in regional areas where there’s a real need for increased rental supply.”
The sites, on the corner of Newcastle and William Streets (the former Auto Masters site) and further east on Newcastle Street would be developed with commercial tenancies on the lower floors and dedicated long-term rental accommodation on the upper floors.
The East Perth Redevelopment Authority’s (EPRA) expression of interest process ensured the apartments were kept to mostly one and two bedrooms, maximising the use of space and keeping the rentals within an affordable price range.
REIWA president Rob Druitt said the model offered affordable, accessible accommodation, particularly for those who needed to live, study or work close to the city.
“This partnership between private funds and Government provides a win-win outcome for the city and for those tenants who will benefit from it,” Mr Druitt said.
“It helps bring the necessary social diversity to the heart of the city, as well as providing an inner city lifestyle to those who might not otherwise afford it.”
The long-term market rental sites are expected to settle later in 2008, with detailed development applications from developers expected to be submitted to the EPRA prior to the end of the year. It is anticipated the rentals will be available in 2011.
Media contact: Craig Huxtable - 9213 6400 or 0439 698 592
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