State develops long-term rental plan

The state government has introduced a new long-term rental model for the inner-city area, which aims to increase the supply of affordable rental accommodation in Perth.

The project, which has been rolled-out in Northbridge, will initially involve four sites being developed into 85 long-term rental units, to be undertaken by Applecross-based Golden Sea Property Development Pty Ltd and Northbridge-based Heyspring Land Pty Ltd.

Under the joint venture model, companies are permitted to buy and develop land, provided the residential component of a development is kept as rental housing for a minimum of 10 years.

Planning Minister Alannah MacTiernan said the government was taking a multilayered approach to housing affordability.

"We believe there's a niche market in long-term property for investors such as superannuation funds and property trusts to take on these sites, which combine rental income and capital growth over the medium to long-term," she said.

"We're now in the process of identifying similar sites in and around the city for this model, as well as sites in regional areas where there's a real need for increased rental supply." The expression of interest process for the Northbridge sites, which was undertaken by the East Perth Redevelopment Authority, encouraged applications to favour one- or two-bedroom apartments, to maximise capacity.

Real Estate Institute of WA president Rob Druitt said the model offered affordable accommodation for those who needed to live close to the city.

"This partnership between private funds and government provides a win-win outcome for the city and for those tenants who will benefit from it," Mr Druitt said.

"It helps bring the necessary social diversity to the heart of the city, as well as providing an inner city lifestyle to those who might not otherwise afford it." The projects are expected to be completed by 2011.