This article is from the Australian Property Journal archive
THE NSW government is looking to industry players to jointly develop a new 600 build-to-rent and affordable home development in the inner Sydney precinct of Redfern North Eveleigh.
The project will include the adaptive re-use of the heritage-listed Clothing Store building and new public parkland and be located close to the burgeoning Tech Central precinct, which the government is hoping will become a tech and innovation hub with 250,000 sqm of office space and where Atlassian will be moving its headquarters to a brand-new $1 billion, 40-storey tower.
“The people that make our city function shouldn’t have to commute for hours to get to work, which is why we’re building more key worker housing in the inner city,” Minister for Infrastructure, Cities and Active Transport Rob Stokes said.
He said 75% of homes would be build-to-rent housing and 15% affordable housing for key workers.
“This government has committed to set aside 30% of all residential stock on our urban renewal precincts for affordable and diverse housing and on this project we’ll deliver triple that target.”
The Redfern North Eveleigh Precinct is 10 hectares of government-owned land south west of Redfern station and made up of the Paint Shop, Clothing Store and Carriageworks sub-precincts.
“This is another city-shaping precinct that will create 3,000 sqm of new, green public parkland, reimagine the heritage-listed clothing store into a space for the community, and play a critical role in bolstering Sydney’s status as a 24-hour global city,” Stokes said.
Transport Asset Holding Entity CEO Benedicte Colin said the precinct was being delivered in partnership with Transport for NSW and had been subject to community consultation.
“We’ve worked with the community on the vision for this precinct and will continue to do so over the coming months,” Colin said.
The selected proponent will manage the site on a 99-year ground lease. Eligible organisations can express interest until Monday, 19th December.
Australia’s fledgling build-to-rent market is mostly centred around Melbourne but Sydney is home to major projects. Prolific developer Tim Gurner and real estate investment manager Qualitas are planning $540 million tower will soar 61 storeys above the Parramatta CBD, while Mirvac’s build-to-rent project in Sydney Olympic Park opened in 2020.
The sector is expected to show resilience against inflationary pressures, interest rates and a weakening economy, as the nascent market moves through a growth spurt on its way to becoming a $9.6 billion market by 2027.
A critical social impact is the speed that built-to-rent dwellings can be delivered to market with no presale requirement for construction, making it an effective pathway to deliver more affordable housing and assist with housing for the vulnerable in the community.
