Social Equity
Inter and intra-generational equity are crucial dimensions of sustainability. Inter-generational equity is defined in the NSW legislation as 'that the present generation should ensure that the health, diversity and productivity of the environment are maintained or enhanced for the benefit of future generations'. While fundamentally issues of equity are debated and resolved through government processes, as a large publicly listed company, Investa has obligations to be a socially responsible company. As such, Investa should look for opportunities to enhance social equity.
Housing Affordability Decreasing
Housing affordability has been a much debated public issue throughout the last year. Housing affordability as measured by the HIA-Commonwealth Bank Affordability Index has decreased 40% from 167.5 in 1996 to 97.8 in 2007. The lack of housing affordability has significantly affected Clarendon's business, especially in New South Wales. House starts in NSW for 2006/07 were approximately 40% down on 2002/03 levels. The following graphs illustrate the changes in house prices over the last two decades:
Opportunities in Affordable Housing
The greatest opportunity Investa has to contribute to social equity is through the provision of affordable housing. Recently Clarendon Homes (Qld) Pty Ltd has applied to become a shareholder of the new Sunshine Coast Housing Company. The new Housing Company will be a not-for-profit company significantly funded by state and local governments and will be responsible for the provision of subsidised affordable housing on the Sunshine Coast. This form of housing is targeted at key workers and is rented to tenants at approximately 75% of market rent. This model is successfully in place in Brisbane and the Gold Coast in Queensland. Clarendon aims to assist the Housing Company and help it establish a significant presence on the Sunshine Coast assisting key workers to obtain affordable housing and therefore contributing to social equity and diversity. Over the next year we will continue to investigate how we further best partner with government and non-government agencies to deliver affordable housing.
Commitments for Financial Year 2008
- Develop strategy for social sustainability.
- Develop smaller, affordable product to service first home buyer market.
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