International Best Practices and affordable housing investment and funding models

The Challenge

Bradfield Development Authority (BDA) is committed to shaping the future of Western Sydney by developing Bradfield City Centre and attracting investment into the Western Sydney Aerotropolis. The Bradfield City Masterplan highlights the opportunity to increase the supply of affordable housing as part of this wider development.

The previous investigation highlights two key challenges for the Bradfield Eastern Precinct concept. First, NSW's modern methods of construction (MMC) supply chain is less developed and diverse compared to other Australian states and international markets. Globally, large-scale modular housing projects have been delivered more efficiently and at a lower cost than traditional construction, offering a strong solution for affordable housing. However, Australia's modular construction industry may not yet be mature enough to achieve similar efficiencies.

Second, the study identifies the need for innovative affordable housing investment and funding models. Traditional financing approaches are less suited to this project’s temporary nature, requiring alternative solutions to be explored.

The Action

This study represents the second phase of work, examining international best practices and their applicability in Australia, along with potential investment and funding models to attract investors. Specifically, Polis Partners:

• analysed global best practices in modular construction to identify key success factors
• assessed challenges limiting modular construction growth in Australia and explored how international lessons could support the Bradfield Eastern Precinct
• identified and evaluated different affordable housing funding and investment models
• explored international programs and schemes that facilitate the expansion of affordable housing.

The Results

Polis Partners delivered a research paper which provides recommendations in terms of how BDA can use international lessons and apply them to the Bradfield Eastern Precinct. This includes ways in which BDA can help strengthen the broader modular construction industry in NSW in order to build the supply chain and industry capacity to deliver more cost-effective solution at Bradfield. The paper also recommends potential affordable housing funding models which would be most applicable for this project. However these recommendations need to be further tested with the industry and other government agencies.