Bridging the housing gap

Australia continues a decades-long imbalance between housing supply and demand. As a country, we’re simply not producing enough homes to satisfy the demand for new housing as our population grows and demographics change.

“Governments across the country have made it clear that only in partnership with the private sector can new housing projects be delivered to help meet rising demand.”

Australia has fewer dwellings per 1,000 people than the average across other OECD countries. The level of housing supply was 420 per 1,000 people in 2022, according to the OECD, which lags comparable countries such as Canada, the US and the UK.

Last year the Federal Government established the Housing Australia Future Fund (HAFF), a dedicated investment vehicle to provide additional funding to support and increase social and affordable housing and other acute housing needs. The fund was credited with an initial $10 billion investment.

Governments across the country have made it clear that only in partnership with the private sector can new housing projects be delivered to help meet rising demand.

Helping to accelerate the development of new housing to help meet this need, especially for the most vulnerable in our communities, is a key strategic priority for ANZ.

We believe the best way to address this societal issue is through collaboration between the public and private sectors, using new and innovative approaches. Our role is integral to this engagement, and we are committed to responding to market needs by delivering the right housing in the right locations at the right price.

We commit to fund and facilitate $10 billion of investment to deliver more affordable, secure, and sustainable homes to buy and rent across Australia.

One market where ANZ is helping to make this a reality is Queensland – a state with a growing economy that continues to be a magnet for interstate migration. Earlier this year, ANZ completed the acquisition of Suncorp Bank to help boost its presence in this market.

ANZ is committed to housing outcomes in Queensland having recently provided lending to two large-scale projects being funded by the Queensland Government’s Housing Investment Fund (HIF) that will collectively deliver nearly 1,000 social and affordable homes.

With the aim to commence 5,600 social and affordable homes by 30 June 2027, the HIF provides subsidies and one-off capital grants to encourage developers, builders, community housing providers, tenancy managers, institutional investors, financiers and superannuation funds to partner to develop, finance and operate additional social and affordable housing supply in Queensland.

In line with this model, ANZ is already progressing on its five commitments related to the Suncorp Bank transaction – with two deals already agreed upon.

Social housing in the north

First, ANZ is partnering with Tetris Capital – a social infrastructure, property developer, and investor – and leading community housing provider Community Housing Limited to deliver an integrated residential campus for seniors in Woree, a suburb of Cairns in the state’s north.

There is a critical undersupply of housing in Cairns and its surrounding areas, and the Rental Affordability Index shows the City of Cairns is unaffordable to anyone receiving a pension.

The project is being funded by the Queensland Government’s HIF.

ANZ is providing debt alongside the Northern Australia Infrastructure Facility (NAIF) and Housing Australia as well as a capital grant from the National Housing Infrastructure Facility to deliver the 490 social, affordable and specialist disability apartments.

Once completed, it will be Queensland’s largest social and affordable housing precinct, comprising 490 residential units, including 245 social housing units, 223 affordable housing units, and 22 specialist disability accommodation.

A mixture of one- and two-bedroom apartments will be delivered for seniors and people living with disability. The homes will be prefabricated offsite by modular housing supplier Modscape at factories in Helensvale and Essendon, backed by FCC Construction Australia. It will also be the largest modular housing project in the country.

The development will allow many seniors currently occupying larger homes in the Cairns region to downsize – releasing existing under-utilised homes for families.

“The Woree precinct demonstrates how effective partnerships between the public, private, and financial sectors can address critical social needs,” said Tetris Capital Principal Ryan Slocombe. “We're proud to contribute our expertise to delivering meaningful housing solutions that make a real impact for future renters and the broader Cairns community."

Construction has commenced with the project anticipated to be completed by the end of 2026, weather and construction conditions permitting.

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Southeast Queensland housing mix

ANZ is also providing financing for an affordable housing project aimed at low-income individuals, couples and families with young children in southeast Queensland.

The project is also being funded by the Queensland Government’s HIF. ANZ will again partner with a Tetris-led consortium Everyone’s Place to deliver 483 affordable homes across Burpengary East, Jimboomba, Logan Reserve and Joyner. The development will be delivered in partnership with Metricon, KDL and community housing provider National Affordable Housing (NAH).

These spacious one, two, and three-bedroom homes will each include private backyards and garages to meet the needs of families and individuals seeking suburban lifestyles  

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Once completed the development will be operated by National Affordable Housing, Australia’s largest affordable rental manager with a strong presence in Queensland.

Together these projects will deliver 973 new social and affordable homes to Queenslanders.

Partnering for Change

These projects reflect the broader partnership between ANZ and Tetris Capital, who are working together to leverage the delivery of more social and affordable housing.  In addition to the two most recent HIF deals, ANZ also supported Tetris on the Ground Lease Model 2 (GLM2) project in Melbourne, which supports the delivery of 1,370 homes. 

These developments–and many others in the works–are a great example of ANZ’s commitment to work with partners to deliver housing for people in our community who need it most.

Supporting innovative housing solutions in collaboration with our customers means more Australians can access housing within our communities.

Caryn Kakas is Head of Housing Strategy at ANZ.