Government unlocks Stirling Towers site

The state government has unveiled plans to transform Highgate’s abandoned Stirling Towers into a build-to-rent development, one of 12 sites to be released for short- to medium-term housing projects.

The now-derelict 1970s social housing complex features one 12-storey tower and one three-storey tower, comprising more than 90 social housing units.

Its replacement, dubbed ‘The Smith Street Build-to-Rent project’, would feature a mix of social, affordable and market-price rental apartments, with asset and tenancy management services provided as part of a ground lease with the provider.

The pilot project forms part of a broader plan by the state government to release sites identified for the delivery of social housing in the short to medium term, which is understood to feature 10 sites across metropolitan Perth and two in regional areas.

Expressions of interest for the Highgate site are expected to open from as early as next month.

Housing Minister John Carey said he knew the community was eager to see the site redeveloped and was committed to making that happen.

“Stirling Towers is a prime example of the challenges we face in terms of social housing in Western Australia, with a significant number of ageing assets that are no longer fit for purpose," he said.

“The McGowan government is tackling the housing challenge by investing $2.1 billion in this term of parliament to expand and improve our state’s stock of social housing.

"That will include the delivery of around 3,300 new homes."

The announcement has been welcomed by industry, including the state’s property council, the urban development institute and the housing industry association.

Urban Development Institute of Australia WA chief executive Tanya Steinbeck said the move was critical in addressing concerns around housing supply following the stimulus measures that had sent demand surging.

“Ensuring the delivery of adequate housing supply across the continuum from social housing through to home ownership can only be addressed in collaboration between the public, private and not-for-profit sectors,” she said.

“The identified sites align with the state government’s intent of increasing density in key transport precincts and corridors.

“The development industry is keen to explore opportunities to deliver housing choice in these locations given the ongoing concern regarding supply into the future.”

While supportive of the move, Ms Steinbeck warned it was one of several steps necessary to address the state’s ongoing land and housing supply issues, with strategic planning approval systems the next step.

The UDIA has called on the state government to establish a detailed housing supply monitoring program to track housing supply and demand, allow for proponent-led solutions, and establish growth areas supported by a housing supply advisory group.

Property Council WA executive director Sandra Brewer said the industry body was encouraged by the nomination of the site and hoped the plan would prompt greater interest in the asset class.

The news will also have benefits for the residential construction sector, according to Housing Industry Association WA executive director Cath Hart, who said the announcement would ensure an ongoing pipeline of work.

She said this would provide a soft-landing for WA’s booming residential construction sector as the high volume of grant-related work was completed.