Village will be used for affordable housing
The Queensland government has recently purchased its third former Freedom community from retirement village giant Aveo Group as part of a multibillion-dollar emergency and social housing strategy.
The State of Queensland Department of Housing acquired the vacant Tanah Merah Village in Loganholme, south of Brisbane, for $44 million, including GST, according to a report by The Australian.
Tanah Merah Village, located at 3745 Pacific Highway, spans a 2.3-hectare site that was developed over three stages in 2008, 2010, and 2018. The village consists of 124 apartments, a large community centre, a fully equipped commercial kitchen, a pool, an AV room, a salon, and a library. Additionally, it includes a 6297-square-metre land parcel that offers potential for further development, The Australian reported.
This acquisition follows the Queensland government's previous purchases of the closed Aveo Freedom Aged Care Clayfield, located six kilometres northeast of Brisbane's CBD, for $9.4 million in 2022, and a former Freedom aged care centre in Toowoomba for $10.6 million in late 2022.
The Tanah Merah Village deal was brokered by CBRE's Will Carman, Adelaide O'Brien, Marcello Caspani-Muto, Sandro Peluso, and Jimmy Tat. Carman mentioned that due to the record low residential vacancy level in Loganholme, the property garnered significant interest and became one of the most contested campaigns of 2023.
“The state of Queensland intends to use the site for affordable housing. While offers higher than the sale price were received, Aveo proceeded with the state of Queensland due to the heightened social need for this infrastructure,” Carman told The Australian.
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The sale of Tanah Merah Village translates to approximately $354,839, including GST, per apartment. The property attracted interest from multiple sectors, including build-to-rent, private residential, student accommodation, and social and affordable housing.
In addition to the $5 billion budget allocated for social and affordable housing, the Queensland government has set aside $64.3 million to purchase and lease emergency accommodation facilities in Brisbane, according to The Australian. As part of this initiative, the government recently acquired the vacant Menso Southbank Hotel in South Brisbane, which will be transformed into self-contained social housing units for individuals at risk of homelessness.
Housing Minister Meaghan Scanlon said that the government has delivered thousands of homes through the Big Housing Build program since 2015. Simultaneously, they have been acquiring and leasing motels, hotels, and former retirement villages to provide housing solutions for more Queenslanders in need. The transformation of the former Menso Southbank Hotel into self-contained units will have a significant impact on families, including those who have been staying in emergency accommodation, Scanlon told The Australian.
“We will now modify the hotel, ensuring that all the suites are converted into self-contained units and appropriate supports are made available on site for those families that’ll soon be calling it home.” she said.
The Queensland government has also made other notable purchases, including the former 84-room Park Hotel in Spring Hill and a 23-room inner-city hotel, The Australian reported. The government has also leased a motor inn in Hamilton for youth accommodation and transformed an apartment complex in Gladstone into public housing. Additionally, vacant aged care properties in Rothwell and Redlands were acquired for $5.1 million and $10.6 million, respectively.
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