March [ ] , 2014
METRO LEAPS TO DEFENCE OF NRAS AS BOND UNIVERSITY STUDY IDENTIFIES SCHEME AS AN “ECONOMIC BONANZA”
Metro Property Development has leapt to the defence of the National Rental Affordability Scheme (NRAS) claiming that a recent Bond University study said it was an “economic bonanza” and had beenalmost exclusively responsible for saving the Queensland development industry in recent years.
In a strident defence of the program, Metro Property Development co-founder and Marketing Director Ken Woodley said NRAS had boosted affordable housing and local economies and called on the State and Federal governments to continue to support of the program.
One of the leading NRAS providers in Queensland, Metro has been able to sell projects to investors in a shorter timeframe than normal due to the NRAS program.
Mr Woodley said the benefits of the program in Queensland were too great to ignore.
“NRAS has been a huge success and the benefits of this program cannot be ignored,” he said.
Mr Woodley said the NRAS was the most important stimulus package for the development industry that has ever been implemented in Australia.
He acknowledged that some of the criticism aimed at the NRAS program in relation to its availability to overseas students was justified.
“The NRAS scheme has been a win-win situation for Queenslanders. Unlike other states, the Queensland Government got it right and made sure it was only available to Australian citizens. The program is achieving exactly what it set out to,” said Mr Woodley.
“Metro has been able to offer tenants one bedroom and two bedroom apartments in inner-city locations for $290 and $345 per week respectively. Our staff witnessed many tenants shed tears of joy when told their NRAS applications were approved.
“Our tenants are key workers like hospital staff, police, teachers, flight attendants, office workers and retail staff.”
Mr Woodley saida Bond University study had confirmed NRAS was a key part of the solution to Australia’s poor housing affordability and would generate significant economic benefits.
The study takes an in-depth look the benefits of NRAS, a 10-year commitment by the Australian Government in partnership with all state governments to stimulate more affordable rental dwellings throughout Australia. NRAS dwellings are required to be leased to low and moderate income households at a rate that is at least 20 per cent below market value.
According to the study, NRAS is expected to generate 50,000 additional affordable dwellings for key workers including hospital staff, police, teachers and office workers by 2016.
Other key benefits mentioned in the Bond University study include the contribution to 329,000 full-time equivalent jobs, with 121,000 direct jobs in the construction industry and 208,000 indirect jobs in other industries. A total $18.9 billion will be generated for the Australian workforce.
A total of $9.3 billion in revenue will be generated for federal, state and local government agencies.
UDIA National President Cameron Shephard said the scheme had already delivered 15,000 affordable homes, with thousands more to follow.
“Australia has for many years suffered from a severe shortage of affordable housing, particularly at the lower end of the market,” Mr Shephard said. “This is contributing to homelessness, and putting an increasing number of lower and moderate income households under undue financial strain.
“It’s absolutely essential for the Federal Government to take action to improve the supply of affordable housing, and the National Rental Affordability Scheme provides a cost effective way to achieve that.”
NRAS Providers Limited chairman Dave Somerville also said the NRAS program delivered significant benefits to the economy as a whole as well as much needed affordable housing accommodation and great social outcomes for tenants.
“NRAS offers a tax free incentive of over $10,000 per year to investors who build a new home and rent it to eligible tenants at 80 per cent of market rate for a period of 10 years,” he said.
“The construction industry has also received a tremendous boost, with thousands of jobs being created. The impact on local economies has been substantial.”
Since joining the program, Metro Property Developmenthad discovered there was huge demand for affordable rental properties in the city.
The company’s apartment development, Madison Heights at Bowen Hills, features 308 apartments, with 174 earmarked for affordable housing.
Mr Woodley said the NRAS properties atMadison Heights had received thousands of enquiries in the past several months.
“We now have a waiting list of tenants wishing to move into Madison Heights when the last few apartments settle,” he said.
“Madison Heights’ apartments have been very popular with NRAS tenants due to their quality and convenient position close to all amenities. The reduced rent means they can now enjoy a safe, affordable place to call home in a fast-growing inner-city suburb.”
Queensland Housing and Public Works Minister Tim Mander commended Metro on the success of Madison Heights and its participation in the Scheme.
“Projects like this are proof that with the right incentives, the building and construction industry can deliver affordable housing in areas that would otherwise be off limits to people on low or modest incomes,” Mr Mander said.
Metro currently has more than 1,000 apartments across five different projects under construction throughout inner city Brisbane, major home and land businesses in Melbourne, Perth and Adelaide and more than $1.5 billion worth of projects in the pipeline.
Metro’s Brisbane projects – which also include Central Village and Brooklyn on Brookes at Fortitude Valley and The Plaza at South Brisbane – have a combined end value of more than $600 million.
For more information about the National Rental Affordability Scheme go to
ENDS
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Peter Hobbs
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