The Western Australian government has expanded its Build to Rent Kickstart Fund to AU$100 million following strong industry demand, unveiling a 98-unit apartment complex in central Mandurah as the scheme’s inaugural project.
The Sutton Apartments development, led by Spotted Gum Property, will be backed by a AU$9 million concessional loan administered through Keystart.
Situated in the heart of Mandurah, the project features a mix of one and two-bedroom units, with 31 dwellings designated as affordable rentals for low-income and key workers. Construction is slated to commence in the coming months.
Following high interest from property developers, the state government boosted the fund’s pool by AU$25 million.
Keystart is currently in credit negotiations with seven additional proponents, which could unlock roughly 850 extra rental properties across Western Australia.
Under the scheme’s criteria, participating developers must commit at least 40 new rental dwellings for a minimum 10-year period.
At least 30 per cent of these homes must be offered as affordable rentals, with weekly rent capped at 25 per cent of a tenant’s household income up to standard Keystart eligibility limits.
Premier Roger Cook said the fund forms a vital component of his government’s broader AU$10.8 billion housing package aimed at alleviating rental market pressures.
“I want every Western Australian to have a home,” Cook said.
“That’s why my government has invested billions of dollars in building more houses across the state, with this fund just one way in which we are delivering affordable homes where they are needed.”
Treasurer Rita Saffioti said WA now offers a nation-leading 75 per cent land tax exemption for build-to-rent projects to encourage institutional investment and speed up construction.
“We’re also delivering the most generous land tax exemption for build-to-rent developments in the nation, to further support the delivery of long-term rental housing in our State,” she said.
