New South Wales Premier Chris Minns has announced his government will set aside $450 million in the upcoming state budget to construct more than 400 homes for essential workers.
The announcement, which had previously been hinted at by state Treasurer Daniel Mookhey, will see the NSW government construct build-to-rent accommodation throughout Sydney which will then be offered to frontline workers for a discounted rate.
Teachers, nurses, police officers, and firefighters are just some of the groups set to benefit from the plan, with the new dwellings due to be constructed near their places of work.
Speaking to media on Sunday, Premier Minns suggested the project, if successful, could be expanded further as part of his government’s ongoing effort to combat unaffordability in the state’s housing market.
“We can offer competitive rates because the government will own the land. It will be the builder of the project,” he explained.
“Any profits that come about as a result of the project will be reinvested so that we can potentially envisage stage two or stage three of this.”
Landcom, the state government’s land and property development organisation, will be responsible for building the new homes, with the project expected to be completed within the next three years.
A cross-government “land audit” is understood to be responsible for identifying potential development sites, although Premier Minns suggested on Sunday that the government was also open to “partnering” with private landholders to ensure suitable locations were found.
Unaffordability in Sydney’s rental market has seen thousands of essential workers leave the state, lured interstate by cheaper accommodation and financial incentives.
Given the pressure, Mr Mookhey labelled the policy a “must have,” as he repeated past suggestions housing would be the central focus of Tuesday’s budget.
However, Mr Mookhey has signalled households should not expect large cost of living handouts, with the state Treasurer arguing they would be counter productive while the Reserve Bank continues to try and bring down inflation.
“There’s no point in me giving money away,” he told the Daily Telegraph on Sunday.
“All that happens is the RBA takes it away in interest rates.”
