TWO Aboriginal groups have taken advantage of the Pilbara’s property squeeze to improve access to housing for the local indigenous community.
The Kariyarra traditional owners of the Hedland area and the Mugarinya community based at Yandeeyarra, about 100 kilometres south of Port Hedland, have formed a property development business, Kariyarra Mugarinya Developments.
Its flagship project is the $24 million development of a 120-hectare parcel of land in South Hedland.
The project received $11.5 million from the state government’s Royalties for Regions fund to enable the development of land into 125 blocks. The first 29 housing blocks have now been released for construction, with the remaining development expected to be completed by mid-2013.
Kariyarra Mugarinya Developments chief executive Kate George told WA Business News the majority of blocks had been sold, with customers including BHP Billiton, but ownership of 22 blocks had been retained to enable the joint venture to generate future profits.
The houses built on those 22 blocks will be leased to mining companies for workers’ accommodation, with 30 per cent of the profits going to the JV partners and the remaining 70 per cent to be used to provide social and affordable housing for local Aboriginal people.
The Kariyarra Mugarinya JV is unique for the fact it is two Aboriginal groups partnering without a resources or native title interest.
Ms George said that fact, while ultimately worthy of recognition, had made the process much more difficult.
“Our biggest challenge was obtaining funding,” she said.
“We’re in the middle of the private sector and no-one was giving us any latitude; I think it’s easier if you’re attached to mining companies as part of a native title agreement because they’re very proactively assisting people ... but we had nothing; we were really there like any other person trying to get in and develop some land.”
Ms George said addressing the lack of affordability in the Pilbara and the lack of homes was among the JV’s principal concerns.
The minimum cost of renting a two-bedroom home in South Hedland was $1,200 a week in the September quarter, according to the Pilbara Development Commission’s Housing and Land Snapshot.
Rental costs for a four-bedroom home reached a maximum of $2,626/week, more expensive than any other Pilbara town.
The minimum cost of buying a South Hedland house in the September quarter was $750,000.
Ms George said those high costs were having a significant and detrimental impact on the local indigenous community.
“Friends of mine are living out here in the bush, so that will very much be our focus for our next project,” she said.
“What we’re hoping to do now is get access to more land and focus on (that issue). I’ve been having discussions with government about this and it is something we really need to address.”
Last week, the state government announced it was allocating $540,000 of Royalties for Regions funding to speed up the processing of land so it could get to market faster.
The funds would be used to provide additional market valuation services over two years. Regional Development and Minister Brendon Grylls said this was integral to supporting growth of the Pilbara property industry.
“To service the rapid growth of the Pilbara and foster economic diversity, substantial effort is needed to provide new homes and associated commercial, industrial and community buildings. In nearly all cases this activity takes place on Crown land, which needs to be valued as part of the development and disposal process,” he said.The government has also embarked on a campaign to gauge future demand for service workers accommodation from businesses operating in the Pilbara.
The process is expected to help the government plan for easing housing shortages in the Pilbara in the future.
Meanwhile, the YMCA and Foundation Housing have both been allocated land by the state government to create workers’ accommodation in South Hedland.
The YMCA has proposed construction of 14 two-storey dwellings on Somerset Crescent to be completed in 2014. Foundation Housing’s proposal will deliver up to 24 dwellings in Lawson Street.
