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🇦🇺 Australia /Economy & Trade

Assemble Slashes Affordable Homes in Melbourne Projects After Planning Approval

From ABC Australia · (6h ago) English Critical tone

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • Housing developer Assemble has been approved to significantly reduce the number of affordable homes in two Melbourne apartment towers.
  • The proportion of affordable homes will drop from 60% to 20%, despite the original planning approval requiring a higher percentage.
  • This reduction impacts hundreds of potential affordable housing units, including those planned under a 'rent-to-own' model.

In a move that will dismay many seeking affordable housing, the Victorian planning minister's department has approved housing developer Assemble's request to drastically cut the number of affordable homes in its Brunswick and Coburg projects. This decision allows Assemble to reduce the promised affordable housing from 60% to 20% of units in two soon-to-be-completed apartment towers.

At the 284-apartment development in Brunswick, where 170 affordable homes were initially committed under the original planning permit, the required number of affordable homes has now been reduced to 57.

— ABC AustraliaDetailing the significant reduction in affordable homes at the Brunswick development.

Assemble, which markets itself as a provider of high-quality, affordable homes for lower and middle-income households, had initially secured planning permission in 2024 under a fast-track program. This approval was contingent on offering a substantial portion of new apartments as affordable housing. The original planning permit for the Brunswick development mandated 170 affordable homes, while the Coburg tower was set to offer 203. These numbers have now been slashed to 57 and 68, respectively.

At the larger, 384-apartment tower in Coburg the number of required affordable properties has been slashed from 203 to 68.

— ABC AustraliaQuantifying the reduction in affordable housing at the Coburg project.

Furthermore, the original proposal included a 'rent-to-own' model, designed to provide a pathway to homeownership for moderate-income earners by allowing them to rent with a locked-in purchase price for up to five years. This innovative model, a key selling point for Assemble, will now apply to a significantly smaller number of homes. As reported by ABC Australia, this decision raises serious questions about the effectiveness of planning policies designed to ensure affordable housing and the ability of developers to backtrack on commitments, even when those commitments were central to gaining planning approval. The reduction disproportionately affects those on lower and middle incomes who were banking on these opportunities.

Assemble scraps 'rent-to-own' model

— ABC AustraliaHighlighting the change in the sales model for the remaining affordable units.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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