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Property Exchange Australia Ltd (PEXA) is putting its real estate database expertise to use in a partnership establishing a register to track progress and compliance of affordable housing across Australia.
The proptech firm, a giant in the e-conveyancing space, has teamed up with the non-profit organisation Housing All Australians (HAA) to create the database that will serve as a centralised platform and repository for recording all affordable housing commitments, while providing governments with the ability to monitor the compliance of all stakeholders through the process.
Designed in consultation with local governments and housing industry experts, the platform is being trialled in Melbourne before expanding to the rest of the country.
The Affordable Housing Register (AHR) will track the commitments of developers, investors, property owners and tenants, ensuring they uphold their obligations, such as the committed period of below-market rent, guaranteeing the long-term affordability of the housing created.
The duo came up with the idea in an effort to address some of the inefficiencies that delay the production, as well as compliance, of affordable housing.
As HAA chair Louise Rutten explained: “One of the biggest challenges with affordable housing is being able to track both the construction of housing – where it’s going and where it’s needed – and then the compliance with developers’ commitments to keep the housing affordable in the longer term.”
“The other big challenge is attracting private capital to this sector because, despite good-intentioned efforts at a local, state and federal level, we know governments can’t solve this problem alone. Innovations like the AHR are fundamental to finding new solutions that deliver more affordable housing,” Ms Rutten said.
The AHR platform will integrate with HAA’s Progressive Residential Affordability Development Solution (PRADS). PRADS enables the creation of affordable housing without relying on any government subsidy or funding by unlocking additional value for developers in the form of density or rezoning perks in exchange for greater dedicated affordable housing.
The resulting affordable housing obligations are secured on title, with rents set below market rates for at least 30 years. Developers can sell the affordable housing to investors with the government maintaining oversight. Presently, how these commitments are tracked is determined by each government body, with the potential for decades-long obligations to fall through the cracks.
PEXA’s CEO, Glenn King, described the register as an important step towards ensuring transparency on affordable housing promises.
“At PEXA, we are driven by our purpose, and there’s no greater purpose for us than applying our technology capabilities to help resolve Australia’s urgent housing crisis. If we do not collectively solve this issue, it will challenge the future prosperity of our country. This is a societal problem that requires true collaboration between business and the public sector, and it’s this kind of ‘out of the box’ thinking being driven by organisations, like HAA, that will pave the way for innovative, new solutions to Australia’s housing challenges,” Mr King said.
The pilot is already underway in the Victorian capital, with the government areas of Port Phillip, Yarra and Melbourne expected to conclude the trial phase in October.
Melbourne Lord Mayor Sally Capp already spoke highly of the initiative.
“The AHR will help magnify the outcomes from the City of Melbourne’s affordable housing strategy,” she said.
“By unlocking private sector capital, we can offer affordable housing for essential workers that is closer to their workplaces, strengthening our local communities,” she added.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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