'Affordable housing' draws flak for $1150 per week price tag
- Replies 9
The term 'affordable housing' gets tossed around a lot these days, and it's beginning to feel like the boomerang that comes back in a different shape each time.
This time, it has returned in the form of luxury Bondi apartments costing up to $1150 per week for a two-bedroom unit, leaving many stumped and asking a rather pressing question.
In what universe does this qualify as 'affordable'?
The controversy regarding a 'discounted' range of luxury apartments in Bondi has stirred the pot recently. The said apartments, featuring marble benchtops, Miele appliances, and terrazzo floors, are hitting the market at $1150 for a two-bedroom unit and $775 for a one-bedroom unit every week.
And apparently, this includes a 20% discount!
To be eligible, tenants must meet certain income criteria mentioned in the NSW Affordable Housing Ministerial Guidelines. Here are the household income eligibility limits for affordable housing in 2023/24:
The guidelines state that ‘housing is usually considered affordable if it costs less than 30 per cent of gross household income’. However, even with a discount, tenants would be shelling out 50-60% of their income on rent alone.
In response to this anomaly, Woollahra Liberal Councillor Sean Carmichael has openly questioned the efficacy of the affordable housing scheme in Sydney's wealthier eastern suburbs.
‘NSW affordable housing policy seems to be working in some parts of Sydney, but honestly it doesn’t work in the eastern suburbs’, he said in a statement.
‘Housing is simply too expensive here for 25 per cent rental discounts to make a meaningful difference for those on low incomes.’
He suggested an alternative solution that doesn’t involve granting state concessions.
‘The best way to increase affordable housing stock is to still ask developers to pay the affordable housing fee instead of supplying supposedly affordable units within new developments,’ he said. The proceeds from the fee could be used to purchase older, comfortable flat blocks and rented out at genuinely affordable rates.
In June, the New South Wales Premier, Chris Minns, announced plans for housing developments worth over $75 million and offered a 30% extension on height and floor space if they allocated at least 15% of the project to 'affordable housing'.
However, Carmichael is not convinced it will work in the city's more affluent areas.
‘Asking developers to include affordable housing units in new buildings in the Eastern Suburbs isn’t going to work when all new builds out here will inevitably be described and priced as “luxury”,’ he said.
According to a spokesperson for the Department of Communities and Justice, the department is exploring new methods to calculate rent for affordable housing units, recognising the current calculation methods as becoming unmanageable.
What do you think of this story, dear members? Do you also think $1150 per week on a luxury apartment is ‘affordable’? Share your thoughts in the comments below!
This time, it has returned in the form of luxury Bondi apartments costing up to $1150 per week for a two-bedroom unit, leaving many stumped and asking a rather pressing question.
In what universe does this qualify as 'affordable'?
The controversy regarding a 'discounted' range of luxury apartments in Bondi has stirred the pot recently. The said apartments, featuring marble benchtops, Miele appliances, and terrazzo floors, are hitting the market at $1150 for a two-bedroom unit and $775 for a one-bedroom unit every week.
Luxury apartments at Bondi drew criticism for their ‘affordable’ price. Credit: Welcomemat.com
And apparently, this includes a 20% discount!
To be eligible, tenants must meet certain income criteria mentioned in the NSW Affordable Housing Ministerial Guidelines. Here are the household income eligibility limits for affordable housing in 2023/24:
Source: NSW Affordable Housing Ministerial Guidelines
The guidelines state that ‘housing is usually considered affordable if it costs less than 30 per cent of gross household income’. However, even with a discount, tenants would be shelling out 50-60% of their income on rent alone.
In response to this anomaly, Woollahra Liberal Councillor Sean Carmichael has openly questioned the efficacy of the affordable housing scheme in Sydney's wealthier eastern suburbs.
‘NSW affordable housing policy seems to be working in some parts of Sydney, but honestly it doesn’t work in the eastern suburbs’, he said in a statement.
‘Housing is simply too expensive here for 25 per cent rental discounts to make a meaningful difference for those on low incomes.’
He suggested an alternative solution that doesn’t involve granting state concessions.
‘The best way to increase affordable housing stock is to still ask developers to pay the affordable housing fee instead of supplying supposedly affordable units within new developments,’ he said. The proceeds from the fee could be used to purchase older, comfortable flat blocks and rented out at genuinely affordable rates.
In June, the New South Wales Premier, Chris Minns, announced plans for housing developments worth over $75 million and offered a 30% extension on height and floor space if they allocated at least 15% of the project to 'affordable housing'.
However, Carmichael is not convinced it will work in the city's more affluent areas.
‘Asking developers to include affordable housing units in new buildings in the Eastern Suburbs isn’t going to work when all new builds out here will inevitably be described and priced as “luxury”,’ he said.
According to a spokesperson for the Department of Communities and Justice, the department is exploring new methods to calculate rent for affordable housing units, recognising the current calculation methods as becoming unmanageable.
What do you think of this story, dear members? Do you also think $1150 per week on a luxury apartment is ‘affordable’? Share your thoughts in the comments below!
.png){kind=icon}
