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Business may be the key to social housing
Social housing and the role of third sector providers is a hot topic right across New Zealand's residential real estate landscape. As the property developer of a number of high quality residential communities with a range of price points (such as Addison), we are enthused about the possibilities presented by the social housing sector.
With the Salvation Army's recent announcement that it had pulled out of discussions with Housing NZ around buying unwanted state housing stock, a number of property developers, including McConnell Property's General Manager Nigel Richards, have commented on the relevance of property developers from the commercial sector being involved in the social housing arena.
Nigel's personal comments have been featured in a thought-provoking article on Stuff.co.nz. At a time when social housing needs to be effectively rolled out for high-need tenants, Richards notes that private sector entities stand ready to provide social housing - as long as there is the potential for scale.
He also makes mention that private enterprise would likely want to qualify for income related rent subsidies (IRRS), before getting involved in running social housing - an element which has to date only been available to IRRS qualified entities such as the Salvation Army.
For high quality, scrupulous developers with a strong track record of delivery like McConnell Property, the balance in being engaged in the social housing space will be in ensuring mixed housing developments hold their value for buyers on the open market, provide an affordable option for social housing tenants, can be delivered at a large scale, and ultimately, offer a great place for people to live.
For more market commentary from Nigel Richards, General Manager of McConnell Property, check out this article in NZ Lawyer Magazine. If you are seeking to engage specialist property development advice for your social housing project, or a residential development for the open market, get in touch with our expert team today on 09 374 3300.