12 April 2007
GOVERNMENT, INDUSTRY TO JOIN FORCES
TO DELIVER MORE PRIVATE RENTAL PROPERTIES
In an Australian-first, the ACT Government will join forces with institutional investors to significantly boost the supply of private rental properties, Chief Minister Jon Stanhope announced today.
The initiative is part of the Government’s wide-ranging Affordable Housing Action Plan.
“Today I announce an innovative and creative proposal to work with institutional investors to develop and rent between 200 and 400 private rental dwellings,” Mr Stanhope said today. “We have the land available and will shortly seek expressions of interest from the market with the aim of forming partnerships to package financing, tenancy management and asset maintenance services. We are particularly interested in receiving proposals that incorporate shared equity initiatives and eventual sales to residents.
‘We believe this is the first proposal of its kind in Australia and are keen to work with industry to bring it to fruition. It has the potential to be a genuine win-win, delivering a significant boost to private rental stocks at a time when the rental market is extremely tight, while giving investors an adequate return on their investment.”
The Chief Minister indicated the dwellings could be in a single development, or spread across a number of areas. To achieve mixed tenure, the overall size of the development or developments was likely to be in the order of 1,000 dwellings.
Mr Stanhope said with vacancy rates at 1.6% in the December Quarter of 2006 and the median rent on a three-bedroom house the highest in the nation at $330 a week, innovative ideas such as this were vital.
He said the supply of rental properties would be further boosted by significant growth in the community housing sector, with an additional 250 affordable rental dwellings over five years. Tenants would also benefit from additional support for tenancy advocacy services.
“These initiatives will significantly increase the supply of rental properties, providing greater access to affordable rental accommodation for moderate-income households, and ensuring that tenants’ interests are well-represented,” Mr Stanhope said.
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