Work begins on multigenerational affordable rental homes on regeneration site
MELBOURNE: Works has begun on a multigenerational affordable rental homes community on a regeneration site.
Construction has officially commenced on Acacia Apartments in Alexandria, with the major housing initiative bringing 264 new social and affordable rental homes to Sydney’s inner city.
The $255 million project, led by not-for-profit community housing provider City West Housing, will deliver 135 social housing apartments alongside 129 affordable rental dwellings. The development is supported through the Federal Government’s Housing Australia Future Fund Facility (HAFFF), with contributions from all levels of government and private sector partners.
Located at 330 Botany Road within the Green Square Town Centre, the project is intended to provide housing for people on very low to moderate incomes, enabling them to remain close to employment opportunities, services and established community networks in inner Sydney.
Designed by architecture firm AJ+C with Infinity Constructions Group appointed as the builder, Acacia Apartments will be an all-electric, fit-for-purpose building designed for long-term rental with a focus on reducing lifecycle costs as well as cost of living. Passive design strategies have been incorporated during the project’s early phase to improve comfort and reduce energy costs for future residents. A partnership with GoGet will provide shared vehicles and reduce reliance on private car ownership. In addition to the apartments, the development will also include eight commercial/retail tenancies.
The project highlights the importance of collaboration in delivering affordable housing, observes City West Housing Chief Executive Officer Leonie King.
“With more than 1,900 eligible households currently on City West Housing’s waiting list in the City of Sydney, Acacia Apartments will help to provide safe, secure affordable homes for 264 lower income households in the heart of one of the country’s most expensive cities.”
The City of Sydney contributed discounted land and funding support for the project.
“Affordable housing is essential for a diverse, cohesive and economically successful global city. More importantly, it’s a basic human right. That’s why we use all levers available to us to maximise genuinely affordable housing,” says Lord Mayor of Sydney Clover Moore.
According to Special Envoy for Social Housing and Homelessness, Josh Burns, the development will make a meaningful difference for people seeking affordable accommodation.
“This project will change the lives of hundreds of very low, low- and moderate-income residents on the waiting list for affordable rental housing in Sydney. It’s yet another example of what can be achieved when all levels of government – backed by the Housing Australia Future Fund – work together with community housing providers like City West Housing to build more social and affordable homes for those in need.”
To finance the project, City West Housing – for the first time – has secured construction funding through the Commonwealth Bank of Australia’s Social Loan Framework.
“We’re proud to support City West Housing in delivering much-needed affordable rental accommodation in inner Sydney. This aligns with CBA’s broader efforts to increase housing supply and affordability by partnering with government and institutional investors to mobilise capital where it’s needed most,” says CBA’s Managing Director, Specialised Industries Michael Thorpe.
Additional support has been provided through Housing Australia, which is helping community housing providers access funding mechanisms designed to accelerate housing delivery.
“Through the Housing Australia Future Fund Social and Affordable program, community housing providers like City West Housing are able to access concessional loans, long term subsidies and take out finance to help them deliver more homes for those in our community who need it most,” comments CEO Scott Langford.
The project forms part of City West Housing’s broader development pipeline, which includes 536 affordable housing apartments across the City of Sydney, adding to the organisation’s existing portfolio of 964 dwellings in the local area.
“Acacia Apartments is exactly the kind of project we need more of – well-located, high quality homes for the people who need them most,” says New South Wales Housing Minister Rose Jackson. “This is what happens when government, community housing providers and industry work together with a shared purpose, and I’m proud to see construction underway.”
Acacia Apartments is expected to be completed in mid-2029.