This article is from the Australian Property Journal archive
THE Queensland government’s Department of Housing and Human Services has bought two retirement villages in Windsor and Toowoomba – both selling for circa $10 million – that it will use to meet social housing demands.
CBRE’s Healthcare & Social Infrastructure team of Marcello Caspani-Muto, Will Carman, Sandro Peluso and Jimmy Tat managed the deals for vendor Aveo Group.
The 30-unit Windsor property at 51 Norman Parade will provide secure and affordable housing for older adults and once rebuilt, the Toowoomba property at 279 Bridge Street will house 50 residents.
Caspani-Muto said the popularity of vacant retirement and aged care assets is “comfortably” at record levels.
“Broader challenges with rising construction costs across the commercial and residential markets, have acted as a catalyst for demand in this sector,
“With development risk and construction costs at all-time highs securing large landholdings with significant existing improvements is highly compelling. We are seeing a steady increase in the number of tenants and owner occupiers entering the space through creative conversions to aged care, healthcare, NDIS and accommodation uses.”
The Queensland social housing plans are part of the $3.9 billion investment in social and affordable housing by the Queensland government.
Data from the Queensland Council of Social Services showed that in 2021 residents had an average wait of nearly two years for accommodation in Toowoomba, an increase from eight months in 2017.
“Our holistic approach means we are not just providing housing assistance, but also connecting people to support from a range of government and non-government agencies that are specific to their individual needs,” Housing Minister Leeanne Enoch said.
As the country grapples with a rental crisis, the Queensland government has engaged the Australian Housing and Urban Research Institute to develop a model to predict future supply and demand for housing in the sunshine state.
The government has also just held its Queensland Housing Summit, where it committed to providing tax concessions for build-to-rent developments to encourage investment in affordable housing.
The state and federal governments unveiled a $7 billion funding agreement for the 2032 Brisbane Olympic and Paralympics that local federal Greens MP for Griffith, Max Chandler-Mather blasted for its lack of social and affordable housing.
The global event shapes as an opportunity for Brisbane to develop housing supply ahead of the city facing a shortfall in the coming years. Brisbane apartment completions and commencements have fallen to long-term lows.
According to SQM Research, Brisbane’s residential vacancy rate was sitting at just 0.8% in February.
