Success or failure : the NRAS

Ge, Xin Janet & Susilawati, Connie (2013) Success or failure : the NRAS. In Kajewski, Stephen L., Manley, Karen, & Hampson, Keith D. (Eds.) Proceedings of the 19th CIB World Building Congress, Queensland University of Technology, Brisbane Convention & Exhibition Centre, Brisbane, QLD, pp. 1-12.

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Abstract

Many Australian families are unable to access homeownership. This is because house prices are very high to the severely or seriously unaffordable level. Therefore, many low income families will need to rely on affordable rental housing supply. The Australian governments introduced National Rental Affordability Scheme (NRAS) in July 2008. The scheme aims to increase the supply of affordable rental housing by 50,000 dwellings across Australia by June 2014. It provides financial incentive for investors to purchase new affordable housing that must be rented at a minimum of 20% below the market rent. The scheme has been in place for four years to June 2012. There are debates on the success or failure of the scheme. One argues that the scheme is more successful in Queensland but it failed to meet its aims in NSW. This paper examines NRAS incentive designed to encourage affordable housing supply in Australia and demonstrates reasons for developing properties that are crowded in areas where the land prices are relatively lower in the NSW using a discounted cash flow analysis in a hypothetical case study. The findings suggest that the high land values and the increasing cost of development were the main constraints of implementing the scheme in the NSW and government should not provide a flat rate subsidy which is inadequate to ensure that affordable housing projects in high cost areas.

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ID Code: 61781
Item Type: Conference Paper
Refereed: Yes
Keywords: Affordability, NRAS, Housing, Australia
ISBN: 9780987554215
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Copyright Owner: Copyright 2013 [please consult the author]
Deposited On: 13 Aug 2013 00:38
Last Modified: 22 Jun 2017 14:46

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