Queensland’s leading affordable housing provider, Brisbane Housing Company (BHC), is entering the retirement village market at Sherwood, 12km south of Brisbane’s CBD.
BHC will offer contemporary, market competitive apartment living priced at $350-$450,000, but as low as $200,000 for true needs clients, while the local median home value is $800-850,000.
Called Arbor and consisting of 52 apartments, their pricing is also pitched as “new accommodation” against nearby villages that are 30 to 40 years old.
The DMF contract is designed to minimise the impact of regular fees on the pension. BHC engaged Hynes Legal to deliver a range of financial options, including strategies to deliver rental support.
Market feasibility studies, marketing and sales are being delivered by David Lo Russo’s Marketability. The display suite opens in two weeks’ time.
CEO Stuart Lummis says they are looking for a 3% ROI versus the normal residential objective of a 5% ROI.
Funded and launched 16 years ago with $40 million by the QLD Government and Brisbane Council to provide inner and middle ring housing for essential service workers, BHC’s mission is to “enhance tenants’ quality of life through sustainable, affordable housing.”
Their first retirement village development is a stripped-down concept, with no swimming pools and other traditional facilities. The village manager will be a care coordinator. Their strategy is for residents to participate in the surrounding community rather than being isolated in the village community – what they call “a well-connected life”.
BHC has now built and manages 1,300 apartments for affordable rental, plus manages a further 250 properties under the NRAS investment scheme and has sold 300 homes into the market.