Housing developments are set to drive up rents in Australia’s suburbs, according to Treasurer Jim Chalmers.
The government is planning to invest $1.5 billion into Australia’s largest student housing project, set to be built in Sydney.
The brick-built housing project is expected to feature open-air corridors, outdoor gardens, meeting rooms, and exercise areas.
In addition, the development will provide 2400 square meters of retail and commercial space.
If approved by the New South Wales Department of Housing and Infrastructure (DPHI), the project will include seven residential towers with nearly 1200 rental units.
The DPHI planning agency warns that rental prices will increase rapidly, as apartments will be kept in single ownership.
Economic experts suggest that high urban rents could spread to suburban areas as housing complexes continue to rise.
