The Australian Competition and Consumer Commission (ACCC) has granted authorisation for the construction of “affordable housing” in South Australia.
Renewal SA has been given approval by the ACCC to sell a section of a development site in Bowden to Investec.
The move in South Australia comes after a recent Rental Affordability Snapshot revealed that more affordable housing was desperately needed in NSW as high rents and lack of social housing leave many low-income families out in the cold.
The ACCC authorisation is granted on the condition that 40 per cent of the dwellings are developed as ‘affordable housing’ supplied at below market rates, according to the ACCC.
This housing is to be made available to people in the “moderate” income category who are often employed in healthcare, social services and administrative support occupations.
Under the arrangement, Renewal SA and Investec will fix maximum rental prices and maximum sales prices (in accordance with affordable housing caps), and apply restrictive criteria for eligible participants.
The ACCC deputy chair Dr Michael Schaper said they believe the arrangement may increase the amount of affordable housing available to those people who cannot access social housing or are excluded from the general housing market in metropolitan Adelaide.
“The ACCC considers that the public detriments arising from the arrangement are likely to be minimal as the development is limited to 80 dwellings in total and the maximum rental and sale prices are fixed by South Australian government regulations,” he said.
The ACCC has granted authorisation for five years.