The Queensland Government has secured agreements with two national builders to develop affordable housing projects under the Build-To-Rent program, which is expected to create more than 400 jobs.
Frasers Property Australia and Mirvac will build the projects in Newstead and Fortitude Valley, creating 750 apartments in total, with 240 of the dwellings to be provided at discounted rent.
The two sites are located at 210 Brunswick St, Fortitude Valley and 60 Skyring Terrace, Newstead.
Treasurer and Infrastructure and Planning Minister Cameron Dick said COVID-19 has shown the importance of providing stimulus to support the construction industry, and of ensuring Queenslanders have access to affordable housing.
“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, in addition to ongoing jobs in the operation of the long-term Build-to-Rent developments,” he said.
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“This is on top of our $100 million commitment to the Housing Construction Works for Tradies program as part of Queensland’s plan to Unite and Recover for Queensland Jobs, which will deliver even more jobs and social housing right across Queensland.”
Dick said the two CBD fringe sites had been chosen based on proximity to amenities and major employment precincts.
“Frasers and Mirvac both have strong track records of delivering high quality construction projects here in Queensland and have been chosen following a competitive procurement process,” Dick said.
“Following the finalisation of designs for the two projects it is anticipated construction will commence in mid-2021.”
Queensland Education Minister and Member for McConnel Grace Grace said the two developments would provide long-term residential security for locals.
“Build-to-Rent will provide secure, long-term rental accommodation for tenants who don’t necessarily qualify for access to social housing, but may struggle to live close to where they work,” Grace said.
“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.”
Frasers Property Australia’s Chief Executive Officer Anthony Boyd congratulated the Queensland Government on facilitating the evolution this new asset class in the Australian market.
“This BTR project will set a benchmark in quality and a model which will encourage further partnerships between government and the private sector and stimulate institutional investment in this new asset class,” Boyd said.
“The outcome will be a greater diversity and supply of affordable rental housing and that’s a positive thing for the community and the economy.”
Mirvac’s CEO and Managing Director, Susan Lloyd-Hurwitz said the company was delighted to partner with the Queensland Government to facilitate the establishment and growth of the BTR sector as a viable long-term property asset class in Queensland.
“And we are even more delighted to work with the Government on a model that could transform the provision of affordable housing for key workers such as nurses, teachers and police,” she said.
“The opportunity to provide Mirvac quality to a deserving group of renters is exciting and aligns perfectly with our purpose to reimagine urban life.”