Build-to-RentHudson FarrThu 03 Sep 26
Mandurah Project First to Win Funds from WA’s BtR Incentive Scheme
Almost 100 new rental homes will be delivered at Mandurah as part of a new WA Government Build-to-Rent Kickstart fund.
Spotted Gum Property’s Sutton Apartments will be the first project backed by the fund thanks to a $9 million loan from the state.
The project at central Mandurah, 70km south of Perth, is due to get under way before the end of the year and will comprise 98 apartments in a mix of one and two bedrooms.Thirty-one of the homes will be allocated as affordable rentals.
The Kickstart fund offers concessional finance to private developers delivering build-to-rent stock, with a condition that a share of homes be quarantined as affordable housing. To be eligible for a loan through the fund, developers must provide at least 40 new rental homes to be offered for at least 10 years.
Thirty per cent of the homes are required to be reserved as affordable housing, with rents capped at 25 per cent of tenant’s income; up to the standard Keystart income thresholds.
As well as the fund, WA has increased the land tax exemption for build-to-rent developments to 75 per cent.
Afrer an expression of interest process, the scheme has moved into credit negotiations with seven proponents, a pipeline the state said could yield nearly 850 homes.
In response to the interest, WA has added another $25 million to the fund, lifting total investment to $100 million.
Treasurer Rita Saffioti said the fund fast-tracked more affordable rental homes to market and supported the growth of the state’s build-to-rent sector.
“This project will pave the way for many more build-to-rent developments across our state as we continue to work with industry to deliver more housing choice for Western Australians,” Saffioti said.
Housing Minister John Carey said the project would enable greater density in an established suburb, expanding the type and number of homes available to Western Australians.
“Ninety-eight apartments in the heart of Mandurah will significantly boost the stock of homes in a location close to jobs, services and transport infrastructure,” Carey said.
