28/10/2020 - 13:52

Government buys $13m worth of apartments

28/10/2020 - 13:52

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The state government has purchased 32 off-the-plan apartments across Perth as part of its $319 million Social Housing Economy Recovery Package.

Government buys $13m worth of apartments
Peter Tinley (left) with Department of Communities assistant director general Nigel Hindmarsh, Iris Residential executive director Fleur Hudson and managing director Simon Trevisan

The state government has purchased 32 off-the-plan apartments across Perth as part of its $319 million Social Housing Economy Recovery Package.

The government’s acquisition, valued at $13.8 million, spans several medium- and high-density projects: Iris Residential’s Amara Booragoon project (13 apartments purchased); Architectura II’s project in North Perth (five apartments); and Momentum Wealth’s The Brixton, in Victoria Park (five apartments).

The government has also made an offer to purchase five apartments within the Distinctive Ardross project. 

The purchased followed a three-week submissions process run by the Department of Communities, which received 16 submissions.

In its announcement today, the state government said the investment would also help the developments secure finance and start construction.

Apartment developers are required to sell a percentage of apartments off-the-plan to qualify for certain lending requirements.

Housing Minister Peter Tinley said the projects were estimated to create and support about 500 jobs in the residential housing sector.

"In June, we invited developers to prepare submissions for residential developments that were well-designed, well-located and offered value for money,” he said.

"The 32 homes acquired through this process may be allocated to any of the Department of Communities' housing programs, including social and affordable housing.

"The McGowan government is delivering on its plan to provide an appropriate level of social and affordable housing, as well as supporting the housing construction industry through the COVID-19 pandemic.

The $319 million Social Housing Economic Recovery Package is the biggest housing maintenance and refurbishment program in Western Australia's history, according to the state government.

Announced in June 2020, it also includes the refurbishment of 1,500 public and community houses, supported accommodation facilities, such as family-domestic-violence refuges, as well as group homes.

Another feature of the package is a rolling maintenance program targeting 3,800 regional government-owned properties and delivery of about 250 new homes to help the most vulnerable people in our community.

Iris Residential managing director Simon Trevisan said the group was looking forward on progressing the delivery of its Amara City Gardens project at Booragoon. 

“We’re very happy to work with the State Government on what is a great initiative, supporting not only the Western Australian community, but also the property industry," he said. 

"COVID-19 has had a significant impact on the property market across the board in WA – and for the residential apartment market, this initiative allows developers to provide certainty to buyers and commence construction with no further delays."

Momentum Wealth head of developments Philip Anderson said the business was excited to break ground on The Brixton project thanks to the stimulus, with construction expected to start next month.

“When designing The Brixton, our focus was on producing high-quality apartments that align with the great location of the project at the heart of East Victoria Park, which we’re pleased has now been reflected in the government’s focus on supporting well-designed, well-located projects that also offer great value for money," Mr Anderson said. 

The Brixton. Photo: Momentum Wealth

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