'Indi Sydney City' will be the first residential project nationwide to utilise a $130 million green loan offered by the Commonwealth Bank.
The partnership between Commonwealth Bank and Oxford Properties Group (Oxford) will contribute to the construction of one of Australia’s most sustainable high-rise residential buildings.
Delivered and managed by Indi, the development is set to be a 5 Star Green Star building, carbon neutral in operations.
Indi Sydney City will also be the first to achieve a NABERS energy rating for build-to-rent developments.
To qualify for the green loan, Investa - owner of Oxford and Indi - collaborated on a Green Financing Framework with borrowings transparently earmarked for eligible green assets.
The framework was developed in line with Green Loan Principles which is accepted as a primary guideline for issuing green loans globally.
Indi Sydney City adopts sustainability outcomes throughout design, construction and operation through material choices, onsite renewable generation and rainwater reuse.
Group Executive of Institutional Banking & Markets at Commonwealth Bank, Andrew Hinchliff, said supporting the development of green infrastructure required for the economy of tomorrow was a strategic priority for the bank.
"The way Australians live, work and play is changing and people will be seeking new, more flexible modes of living that can put them closer to their jobs," Mr Hinchcliff said.
"Build-to-rent properties will play a key part in Australia’s future."
Staggering land prices leave Aussies pondering next move
The Housing Industry Association (HIA) reported the cost of blocks of land has risen twice as fast as building materials.
HIA Chief Economist, Tim Reardon, said while building costs have contributed to 4% of the total cost of home building in the past financial year, land prices added 8.5%.
"Land supply has been in tight supply for the past two decades and the surge in demand in 2020 has seen land prices in Sydney rise 27.1% in the past year alone," Mr Reardon said.
The strength of demand for land is set to continue throughout 2022 and into 2023 according to Mr Reardon.
"As land is a key component of housing, this increase in price has been a key driver of the rising cost of homes and the decline in housing affordability," he said.
CoreLogic's research director Tim Lawless said HomeBuilder brought forward demand, with land sales surging through the back half of 2020.
"The lift in land prices and residential construction costs along with the value of establish housing rising rapidly, is set to add further pressure to housing affordability challenges that are becoming increasingly apparent," Mr Lawless said.
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Lender | Advertised rate | Comparison rate | Monthly repayment | Rate Type | Offset | Redraw | Ongoing Fee | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Pre-approval | |
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Green Construction Home Loan (Interest Only)
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Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of November 27, 2021. View disclaimer.
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