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The National Australia Bank (NAB) has laid out the target that includes specialist disability accommodation, development of social and affordable housing projects, and access to finance for low-income earners and essential workers through government-supported housing schemes, following the government’s investor roundtable.
Treasurer Jim Chalmers said that the government was excited to bring together investors with trillions of dollars in funds under management to join forces in tackling major economic challenges.
“The Albanese Labor government wants to work with investors to see where we can deliver win‑wins for investors and superfund members and for the national economy and the Australian people more broadly,” he said.
Mr Chalmers said that low vacancy rates, high rents, and difficulties finding housing where jobs and opportunities are being created are key issues that the government is looking to address.
Indeed, the meeting included the federal government’s already announced housing targets such as the $575 million National Housing Infrastructure Facility, the $10 billion Housing Australian Future Fund, and Housing Accord.
In addition, the government announced its “first public private partnership” investing with AXA and with St George Community Housing for 350–400 affordable homes at Westmead.
Other topics up for discussion at future investor roundtables, which are due to be held every three to four months, will include data and digitisation as well as clean energy.
NAB sets new target
NAB’s chief executive, Ross McEwan, who was invited to address the roundtable, said affordable housing was a significant and growing issue that could be better supported by banks and other finance providers.
“NAB is working closely with community organisations and governments to deliver solutions to the affordable housing challenge in Australia,” Mr McEwan said.
In November 2019, NAB set a target to provide $2 billion of financing to support affordable and specialist housing over three years. The target was met and surpassed, with financing of more than $3.6 billion within three years.
Given the rental affordability issues sweeping the nation, Mr McEwan said new and innovative projects were helping address the lack of social and affordable housing.
“Helping Australians buy a home is a significant part of what NAB does and we want to do more to help provide a greater supply of safe and affordable homes, particularly for people on low incomes,” Mr McEwan said.
“We see a need for more nationally consistent planning rules, to enable more homes to be built in inner and middle ring suburbs of our largest cities.
“Incentives for organisations to release, sell or at least partly develop large parcels of unused or underutilised land would also create more affordable housing supply. The exact incentives offered could be informed by advice from NHSAC.”
The Australian Bureau of Statistics’ latest monthly building approvals data for October 2022 revealed building approvals fell by 6.0 per cent in the month of October to be 9.0 per cent lower than in the three months to October compared to the same quarter in 2021.
Mr McEwan added that greater collaboration between the finance sector, state, territory, and federal governments could also increase construction of affordable and social housing, with tailored options required on debt and equity to facilitate more lending to community housing providers.
Super fund invests
Cbus Super has committed to investing up to $500 million over five years to support the construction of new social and affordable homes.
The investment will be made through the Housing Australia Future Fund (HAFF) as part of the government’s National Housing Accord announced in this year’s budget.
Cbus CEO, Justin Arter, said that the super fund is determined to help supercharge the financing of new social and affordable housing across the country.
“Cbus Super’s commitment is subject to the finalisation of commercial terms for the HAFF, but we are confident of reaching terms that will be in the best financial interest of Cbus Super members while unleashing billions in new funding for community housing projects,” he said.
Alongside AXA IM and St George Community Housing and the NHFIC forming a partnership to deliver affordable homes, HESTA also announced that it would invest $240 million in the launch of Super Housing Partnerships to seed the fund’s initial focus on a pipeline of build-to-rent apartment projects.
[Related: Economists rate governments housing accord]
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