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Greens unveil plan for beautiful and affordable homes in Coburg and across Australia

The Greens have announced plans for 224 government built affordable apartments they will push for in the balance of power after the next election, releasing graphic renders as a proof of concept. The unveiled plans are part of the Greens’ proposed Federal Public Property Developer. The apartments would be built in central Coburg, on council owned car parks, with the local Merri-Bek City Council already identifying the sites as suitable for affordable housing.

Max Chandler-Mather, Greens’ Housing spokesperson and Samantha Ratnam, Greens candidate for Wills have the announced plans. With 30,000 households living in housing stress in Wills alone, and rents in Coburg having risen 41% since the election, locals are being pushed out by sky high rents and house prices.

 

Caption: The Greens proposal for 100 units of housing on Louisa St in Coburg, to be built under their plan for a Public Property Developer.

Caption: The Greens proposal for 124 units of housing on Russell St in Coburg, to be built under their plan for a Public Property Developer.

As per the Greens policy, rents in homes built by the public property developer will be set at 25% of income or 70% of market rent, whichever is lower, saving the average renter $319 a week on rent. Sale prices will be set at 5% over the cost of construction, saving the average first home buyer $249,000 on the price of a market price home. While anyone who doesn’t already own property would be eligible to access the apartments, priority allocation would be given to people with connection to the local area, including:

  • Families with children enrolled in local schools
     
  • People who work in key local services such as hospitals, schools and community service

  • First Nations community members 

The concept homes will showcase the type of housing that would be built by the public developer, to make home ownership possible for the thousands of locals across Melbourne who have been locked out of buying a home in the communities where they live and work.  

The council-owned sites in the heart of Coburg are currently underutilised as a car park, while the community struggles with a massive shortfall of affordable housing. The projects on Russell and Louisa Streets will be close to both the tram and train, parks, a public swimming pool and leisure centre and a buzzing shopping precinct. The site is already zoned for and close to medium density residential, and identified by Merri-Bek City Council as sites suitable for affordable housing following a community consultation process

Under the Greens plan:

  • around 610,000 homes for sale and rent would be built nationwide over a decade, with 72,000 starting construction in the public developer’s first year. 

  • Homes would be sold at just over the cost of construction to any first-home buyer and 70% of homes built would be available as rentals, to be capped at whatever is lower of 25% of household income or 70% of market rent. 

Parliamentary Budget Office analysis estimates that the Public Housing Developer plan could:

  • save a first-home buyer up to $249,000 on average on the cost of a home (a 31% discount compared to the median private market home)

  • save a renter up to $16,600 a year on average (a 45% discount on market rent)

Greens analysis estimates that Melbourne’s share of Public Developer homes could see around 107,000 homes for sale and rent in Melbourne - with around 12,600 starting construction in the public developer’s first year.

The Greens want to see the government invest $308 billion in building public housing across the decade. Taking into account operating costs, interest costs on debt and rental and sales income, the fiscal impact of this investment would be $6.4 billion over the next four years. By way of comparison the Federal Government spent $27 billion in rental deductions for property investors this year alone. 

Lines attributable to Max Chandler-Mather MP, Greens spokesperson for Housing and Homelessness:

“If the Greens secure the balance of power after the next election by winning more seats like Wills, we will use that leverage to push for developments like this to be actually built.”

“All we’re proposing is that Australia copy the successful housing policies of countries around the world, like Austria or Singapore, where the government directly builds good quality affordable homes then sells and rents them to a broad cross section of society.

“Under the Greens, a publicly owned developer would build hundreds of thousands of beautifully designed homes like this, which people could rent and buy at prices they could actually afford.

“A renter who moved into one of these apartments would save $319 a week in rent, because unlike a private developer, a government developer wouldn’t be trying to fleece them for extra rent just so they can make a profit. 

“A first home buyer could purchase a public developer home at a 31% discount compared to the average private market home, because the public developer would sell homes at just over the cost of construction.”

“As long as Labor and the Liberals keep outsourcing housing to profit hungry private developers who keep land and homes vacant to drive up prices, we will never fix this crisis.” 

Lines attributable to Samantha Ratnam, Greens candidate for Wills:

“This is a game changer for Coburg. The community has been pleading for more affordable housing in the area and wants to see investment to revitalise Coburg.” 

“To solve the housing crisis we need bold ideas for homes that are practical, achievable and liveable. The Greens plan for a Public Property Developer breaks the stranglehold the private market has on housing and delivers housing security for working people and families.”

“The housing crisis is seeing people pushed to the brink and pushed out of suburbs like Coburg. Labor has tried and failed to rely on wealthy private developers to solve the housing crisis. It is time for fresh and bold solutions.”

“Instead of lining the pockets of property developers, a public builder will build homes for people that are affordable and stay affordable, keeping our community together.”

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