Tackling the affordability puzzle
Housing affordability is a key election issue for governments at state and federal levels as well as a major issue for developers. Here, we talk to Peet Managing Director and CEO Brendan Gore about his company’s approach to delivering affordable living options.
As a member of the UDIA Queensland’s Industry Leaders Research Group, Peet guides the qualitative research carried out twice a year to help developers navigate the ever-changing face of the industry and consumer expectations.
The company has long been recognised for delivering high-quality master planned communities with extensive public infrastructure. Over the past decade, Peet has diversified its product footprint, staying ahead of contemporary market demand for affordability, sustainability, and increased density with innovations in medium density housing and apartments. The company is now one of the largest ASX-listed residential land developers in Australia, progressing some of the biggest greenfield urban development projects in the country.
Brendan Gore has been at Peet’s helm since 2007, prior to which he spent more than 20 years working in the mining and oil and gas sectors in senior corporate, commercial and operational positions). The company has a development pipeline of approximately 50,000 lots with a gross development value of just over $14 billion, with activity focused across Western Australia, Victoria, Queensland, South Australia and the Australian Capital Territory.
“Property is a long-term and capital intensive business,” Brendan says.
“Housing affordability is arguably the greatest challenge that we are confronted with today and into the future. It is ultimately addressed by trying to bring on new supply to meet demand. Peet has a role to play in this space, often bringing forward significant infrastructure investments to unlock new areas to bring supply on to meet market demand than would be otherwise possible.”
Indeed, Peet played a key role in bringing together the $1.2 billion Infrastructure Agreement – the largest in Queensland – to unlock the Greater Flagstone area. Similarly, at Eden’s Crossing and Riverbank, the company invested tens of millions of dollars to bring forward critical infrastructure connections ahead of their scheduled construction.
“Many of our projects nationally are joint ventures or partnerships with government that have clear affordability mandates, such as an allocation of stock to shared equity or other government housing programs,” Brendan explains.
“First home buyers also make up a large segment of Peet’s customers and we understand that affordability is the key driver to their purchase decision.”
Keep reading this article in the latest edition of establish.