Success or Failure: The NRAS

Ge, J; SUSILAWATI, C

Success or Failure: The NRAS

Ge, J

SUSILAWATI, C

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Publisher:: Queensland University of Technology
Publication Type:: Conference Proceeding
Citation:: Proceedings of the 19th CIB World Building Congress, Brisbane 2013: Construction and Society, 2013, pp. 1 - 12
Issue Date:: 2013-01

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Field	Value	Language
dc.contributor.author	Ge, J https://orcid.org/0000-0002-2252-7829	en_US
dc.contributor.author	SUSILAWATI, C	en_US
dc.contributor.editor	Kajewski, S	en_US
dc.contributor.editor	Manley, K	en_US
dc.contributor.editor	Hampson, K	en_US
dc.date	2013-05-05	en_US
dc.date.issued	2013-01	en_US
dc.identifier.citation	Proceedings of the 19th CIB World Building Congress, Brisbane 2013: Construction and Society, 2013, pp. 1 - 12	en_US
dc.identifier.isbn	978-0-9875542-1-5	en_US
dc.identifier.uri	http://hdl.handle.net/10453/27674
dc.description.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.	en_US
dc.publisher	Queensland University of Technology	en_US
dc.relation.ispartof	Proceedings of the 19th CIB World Building Congress, Brisbane 2013: Construction and Society	en_US
dc.relation.ispartof	CIB World Building Congress	en_US
dc.title	Success or Failure: The NRAS	en_US
dc.type	Conference Proceeding
utslib.location	Proceedings of the 19th CIB World Building Congress	en_US
utslib.location.activity	Brisbane, Australia	en_US
utslib.for	120503 Housing Markets, Development, Management	en_US
dc.location.activity	Brisbane, Australia	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building/School of Built Environment
utslib.copyright.status	open_access
pubs.consider-herdc	true	en_US
pubs.finish-date	2013-05-09	en_US
pubs.place-of-publication	Proceedings of the 19th CIB World Building Congress	en_US
pubs.start-date	2013-05-05	en_US

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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http://hdl.handle.net/10453/27674