The Federal Government has committed to delivering 10,000 new affordable homes over five years from 2024 under a National Housing Accord to address an accommodation crisis. State governments also have a variety of policies. Last November the Albanese government established the Housing Australia Future Fund (HAFF), a dedicated affordable housing investment vehicle.

City West, an affordable housing developer and operator, has plans to keep growing.

The group sold a 2252 square metre block at 74-88 Botany Road, Alexandria and will use the cash to unlock capital for its $500 million affordable housing pipeline focused on Green Square.

City West chief executive Leonie King said affordable build-to-rent developments are being funded with equity, debt, government grants and subsidies, including affordable housing developer contributions levied through the City of Sydney.

“With affordable rental housing an emerging asset class, City West Housing will also be looking to the Housing Australia Future Fund and third-party investors for funding support,” King said.

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Rents will be capped at 30 per cent of a combined household’s income, ensuring that people on very low to moderate incomes have safe, secure affordable housing and can live close to where they work. King said 64 apartments were originally approved on the Botany Road site compared to the 150 affordable residences in what will be called Banksia Apartments.

“The significant value we captured on Botany Road, combined with a competitive purchase price for Bourke Road, means we can house up to 86 more low-income working households into a part of the city where housing demand is extremely high,” she said.

“It will also help us to finance the ever-increasing development costs for all our pipeline projects in the City of Sydney.”

NSW Housing and Homelessness Minister Rose Jackson said “The cost of living has never been so high in Sydney and surrounds and so it’s great to see affordable housing providers such as City West Housing expand out of Sydney so more people can benefit,” Ms Jackson said.
It’s clear that we need real solutions and we need them now and these project is one of those solutions that will benefit those who need it most.”

Other sites also around Green Square include the Acacia project with 250 units, the Bangalay project of 104, and the Boronia project with 74 affordable apartments and Banksia with 150 affordable apartments.

Melbourne City Council’s affordable housing strategy sets an ambitious target to deliver up to 25 per cent of affordable housing on council land to address the current 6000-home shortfall, which is set to increase to 23,000 by 2036.

About 2600 square metres of land is proposed to be converted into multi-unit affordable housing on Curzon Street in North Melbourne and Victoria Street in West Melbourne, including provision for key workers, Indigenous peoples and older women.

Construction of the City of Melbourne’s landmark Make Room project will be completed in August, which repurposes a council-owned building at 602 Little Bourke Street into transitional supported accommodation.

Melbourne Lord Mayor Sally Capp said that in a housing crisis “every home that becomes available matters”.

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