Arabic version: المطور يقلص التزامه بالإسكان الميسور في مشاريع ملبورن

Developer Assemble has withdrawn a significant number of affordable homes from its upcoming residential developments in Melbourne’s inner-north. According to ABC News, the reduction will see the number of promised affordable apartments in the Brunswick and Coburg projects drop from 373 to 125.

The changes were approved on behalf of Victoria’s planning minister, Sonya Kilkenny, despite pushback from the local council, which criticized the decision as a “watering down” of public benefit. Assemble, which is backed by superannuation firms HESTA and Australian Super, initially committed to providing 60 percent of the units as affordable housing in these developments.

The approved modifications mean that at the Brunswick site, the number of affordable homes will decrease from 170 to 57, while in Coburg, the count will fall from 203 to 68. This drastic reduction has raised concerns about the availability of affordable housing in the area.

Assemble originally proposed a “rent-to-own” model for the 373 affordable apartments, allowing renters to secure a purchase price and transition to ownership over five years. However, under the new permit, only 125 homes will be offered through an “affordable build-to-rent” model, extending rental terms to ten years for medium-income households.

Merri-bek Council has voiced strong opposition to the changes, stating that the revised commitments represent a 33 percent reduction in affordable housing. The council also highlighted that the amended permits eliminate affordable ownership opportunities, leading to homes being sold at market rates instead. Despite the criticism, Assemble maintains that the new model will provide stable, long-term rental options for the community.