Release of Bunbury apartments for private rental

4/5/93

Bomberi apartments in Bunbury are to be let to the private sector as part of a radical change to the operations of Homeswest.

Housing Minister Doug Shave said the Homeswest Board had agreed that the apartments should be let on to the private market which would create an extra 40 private units for rental in Withers.

"The Bomberi decision follows the successful trial of private leasing of a Homeswest block of flats in the Kwinana area," Mr Shave said.

"The flats were handed over to a private agent and are now fully let.

"As was the case with the Kwinana trial, any Homeswest tenants remaining at Bomberi will be found alternative accommodation.

"Homeswest will retain ownership of the apartments, but this will be reviewed in the future."

Mr Shave said a number of options for Bomberi had been thoroughly examined by Homeswest.

"With a refurbishment cost of more than $800,000 it is a far better use of taxpayers' money to release the units for private rental.

"Private agents agree that Homeswest complexes compare favourably with those on the private market and offer investors a good return."

Mr Shave said that the next stage in the change of direction for Homeswest would be to look at selling the properties as a going concern and fully let or by strata titling individual units.

Mr Shave said the review of Homeswest's apartment strategy was essential if the Government was to meet the needs of today's society.

"We must create the situation where both Homeswest and private tenants have confidence in the accommodation being offered by Homeswest and while the vast majority of medium density housing meets the needs of tenants, a small percentage is consistently difficult to let or is subject to vandalism and serious social problems," he said.

"In future, when Homeswest opts to refurbish apartments we will look closely at who goes back into those homes.

"This means that, in general, single parents with small children will not be assigned these homes.  Young children need somewhere to play and that is not easy in an apartment situation.

"The Government will also look at other properties for private rental or sale.

"With this change in direction for Homeswest, we have the opportunity to be more prudent in the way in which funding is used and get away from an area of Homeswest accommodation with which there have been problems and which did not integrate tenants into the general community."

Media contact: Brian Coulter 222 9595/325 4133