The developers hoping to cash in on 'affordable' housing

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ABC News Daily 16 min 5 speakers 4 chapters transcribed 2 months ago
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Alicia Sibbins 0:00
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Sam Hawley 0:47
When you say the words affordable housing, there's a natural scepticism. But across the country, developers are signing up to schemes that are supposed to give people a chance to rent without being left with barely anything in their pay packets. Today, Pat McGrath on his Four Corners investigation into who's really benefiting. I'm Sam Hauling on Gadigal land in Sydney. This is ABC News Daily.
Sam Hawley 1:25
Pat, in the ritzy Sydney suburb of Potts Point, one of Australia's richest men, James Packer, is a major investor in the redevelopment of an apartment block. And wow, if it's approved and then completed, it's going to have some really nice and expensive dwellings inside, isn't it?
Pat McGrath (Four Corners reporter, main guest) - Primary explainer in transcript (note: SPEAKER_05 biometric conflict resolved by content; SPEAKER_02 is Pat) 1:44
Yes, James Packer has at least three of these projects in the pipeline. So he's really getting into real estate investment in a big way. This particular one in Potts Point is with a developer partner called Time and Place. And James Packer is the major investor there. And this is one of the most expensive pockets of Sydney. It's got harbour views, penthouse apartments in this area. They're going for millions of dollars. So it does promise to be extremely lucrative.
Sam Hawley 2:12
Yeah, nice if you can afford it. But as part of this development, Pat, down the bottom of this apartment block, there'll also be some, well, not so luxurious, so-called affordable housing.
Pat McGrath (Four Corners reporter, main guest) - Primary explainer in transcript (note: SPEAKER_05 biometric conflict resolved by content; SPEAKER_02 is Pat) 2:26
Yeah, so this development is being proposed through these affordable housing programs. rules, and this means that developers in New South Wales under this particular scheme, they can build a lot higher and with a lot more density than they would otherwise under local planning rules if they have 10% of the floor space of the building is affordable rental housing for at least 15 years. Now, those affordable homes, they're on the lower floors. There's going to be a separate entrance to the main building. And this is what's sometimes called a poor door. Now, it's worth saying that with other projects that we've looked at, developers have defended this separation of the affordable housing from the main building.
Pat McGrath (Four Corners reporter, main guest) - Primary explainer in transcript (note: SPEAKER_05 biometric conflict resolved by content; SPEAKER_02 is Pat) 3:06
They say the affordable units then don't have to pay the big body corporate fees. But obviously, when people look at this so-called poor door, it is a very controversial design element.
Sam Hawley 3:17
Yeah, sure is. That's a bit rough, isn't it? So this is, though, part of this affordable housing project that the Albanese government came up with to have 20,000 so-called affordable rental homes by 2029.
Pat McGrath (Four Corners reporter, main guest) - Primary explainer in transcript (note: SPEAKER_05 biometric conflict resolved by content; SPEAKER_02 is Pat) 3:33
Yeah, well, this is all about the topic that's on everyone's mind at the moment, and that's housing affordability. And public housing levels have dropped to historical lows. And so affordable housing is this kind of this middle path that's for middle income earners and lower income earners, essential workers and so on. So it's a new type of housing or a newer type of housing, and it's being delivered by developers, community housing providers, public money as well, but also big investors.
Music
Sam Hawley 4:07
All right, so these developers, they are given incentives to build affordable housing. And as part of this project in Potts Point, in return, they can then increase the height of the building. But Pat, there will be fewer homes as a result.
Pat McGrath (Four Corners reporter, main guest) - Primary explainer in transcript (note: SPEAKER_05 biometric conflict resolved by content; SPEAKER_02 is Pat) 4:31
That's right.

What is the Four Corners investigation into 'affordable' housing?

Pat McGrath (Four Corners reporter, main guest) - Primary explainer in transcript (note: SPEAKER_05 biometric conflict resolved by content; SPEAKER_02 is Pat) 4:31
We've had a planning expert look at this development and they estimate that it could add an additional $30 million or more of value to this development, having that extra height and the cost of keeping those affordable units. Affordable for 15 years would cost about $2 million. So doing the sums there, it's clear there's a lot of money to be made.

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