What government must do is bridge the gap between what tenants can afford pay, and the return required by institutional investors, writes Robert Harley.
is a “down payment” on the reform of Australia’s housing market but no quick fix to the rental crisis.
The package, which has three elements, was foreshadowed at the federal election, introduced into parliament last week, and is part of a broader Albanese agenda, which includes theThe key element is the Housing Australia Future Fund , which is a $10 billion off-balance sheet investment with the Future Fund.
The chief executive of the Association of Superannuation Funds of Australia, Dr Martin Fahy, says institutional investors have a key role to play in addressing Australia’s housing challenges. Redress could cost taxpayers up to $55 billion, according to SGS, but with an estimated upside of $110 billion, the cost-benefit ratio is better than on many traditional infrastructure investments.Importantly, governments, both Commonwealth and state, don’t have to build and own this housing; around the globe a new sector of institutional investment is growing in social and affordable housing.
Outgoing Mirvac CEO Lloyd-Hurwitz has tried to encourage the NSW and Victorian governments to embrace similar schemes.Langford, calls the HAFF an “important down payment” on reform that could stimulate institutional investment and allow the community housing providers to plan and build a stronger pipeline.
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