State buys another whole complex south of Perth for public housing

The WA and Commonwealth governments have made another major purchase of a whole housing complex to convert into public housing.

Housing and Works Minister John Carey announced the use of the Commonwealth’s Social Housing Accelerator fund to buy 38 new apartments in North Coogee, under construction by PARC, for $23.45 million.

Housing Minister John Carey has announced the government’s purchase of The Sandhouse, in the Shoreline estate in North Coogee.Credit: PARC/Hamish Hastie

The complex includes 12 one-bedroom, 24 two-bedroom, and two studio apartments and is due for completion late next year, whereupon a community housing provider will run it.

The average cost of each dwelling under the purchase price is about $620,000.

It’s less than a week since Carey announced the $105 million whole acquisition of the Fraser Suites tower in East Perth, which contains 236 luxury apartments.

Carey said a public call for more social housing in the state last year led to PARC offering its project.

“Our Call for Submissions process allows industry to work with the state government to deliver more social and affordable housing, including by employing innovative construction methods,” he said.

“This is a great result from private industry and different levels of government working together to increase housing supply, especially for the most vulnerable in our community.

“We’re trying to think outside the box, looking at different ways to accelerate the delivery of social and affordable housing.”

Carey has previously said in purchases such as Fraser Suites the state opts for a mix of about 30 per cent social and 70 per cent affordable housing, meaning housing rented to low-income earners with rent capped at 30 per cent of their total income.

Carey said the “beautiful” area of North Coogee only had about 0.78 per cent social housing.

“If we are to address the critical issue of housing our most vulnerable, we need to keep doing this,” he said.

“I understand from time to time that people can have apprehension, but the reality is that we do need to keep delivering social and affordable housing because we don’t, then we risk the consequences of more rough sleeping.”

The North Coogee project uses prefabricated masonry, which Carey said would mean the project would be completed in 16 months.

Federal Fremantle MP Josh Wilson said the new dwellings would mark a new chapter for people seeking affordable, safe and secure homes.

“North Coogee has a lot to offer with access to the beach, easy connection to Fremantle and great new public amenities,” he said.

The major whole-of-complex purchases have sparked significant public debate over the government’s pursuit of public housing in the face of a housing crisis.

Inglewood residents have been vocal in their criticism of the Department of Housing’s purchase of a Ninth Avenue complex for social housing which they say has caused significant anti-social behaviour.

The community housing sector heralded last week’s purchase of the Fraser Suites as a huge boost to help those struggling.

However, residents in the Queens Riverside tower next door say they were blindsided by the decision and hold concerns about the potential impact on their property values and risk of increased anti-social behaviour with so much public housing in one place.

Carey said he would attend two upcoming drop-in sessions with residents.

Carey also announced the government had met its 3300 new social homes target set in 2021.

There are currently 22,000 people on the public housing waitlist.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.