Greens propose $27.9b Government run property developer
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The news: The Greens are calling for the Federal Government to establish a public property developer to build hundreds of thousands of properties, before renting and selling them at discount prices to first home buyers.
The numbers: The Greens proposed that the public property developer would sit under a revamped Housing Department, and be tasked with building 360,000 new dwellings over five years – focusing on medium density developments.
Greens housing spokesperson Max Chandler-Mather said 30% of the new properties would be available for sale, while the remaining 70% would for renters with rents capped at 25% of household income. The homes would be available to any renter or first home buyer, with 20% of the rentals allocated towards the bottom 20% of earners.
The Greens said research conducted by the Parliamentary Budget Office estimated an average renter would save $5,200 annually, while an average buyer would save $260,000.
The plan would cost a total of $27.9 billion over a decade, which the Greens claim could be recouped by removing rental deductions for property developers.
The context: Housing is shaping up as a key election issue, with rent and deposits continuing to soar – particularly in major cities. The Greens are currently stonewalling the government’s Help to Buy scheme in parliament, just months after protracted negotiations over its Housing Australia Future Fund ended in a multi-billion dollar agreement on social housing.
Chandler-Mather will unveil the plan, the Greens’ first federal election policy, when he addresses the National Press Club on Wednesday.
The Greens noted the developments would be integrated with public transport and those with a connection to the local area would be prioritised.
What they said: “Relying on private developers to tackle the housing crisis is like relying on Coles and Woolworths not to rip you off. They helped create the crisis in the first place, and have no interest in fixing it," Chandler-Mather said.
The source: Australian Greens
