Construction is underway on 490 social, affordable and specialist disability apartments in Woree, Cairns. The landmark project will offer seniors the opportunity to downsize from larger homes and enjoy a well-connected, supportive environment, while also helping to free up under-utilised social housing for families in need.
The $364 million project is the largest volumetric timber modular project ever undertaken in the Southern Hemisphere and, when complete, it will be the largest social and affordable housing precinct in Queensland.
The project is being delivered by Community Housing Limited (CHL) in partnership with Tetris Capital (Tetris), supported by the Queensland Government’s Housing Investment Fund. The project also marks the first time that Housing Australia (HA) and the Northern Australia Infrastructure Facility (NAIF) have jointly contributed financing towards a project.
Housing demand
Key insight: Cairns has the highest level of unmet housing need in Queensland outside of the south-east corner.
In Cairns, nearly nine9 per cent of households report unmet housing needs due to a combination of factors, including rising rents, escalating costs of living and a significant reduction in the rental vacancy rate. This means many households are struggling to afford housing, experiencing housing stress, or facing homelessness.
The Rental Affordability Index shows the Cairns region is unaffordable for anyone receiving a pension, meaning that pensioner households would pay more than 30 per cent of their income in rent putting them at risk of experiencing housing stress and homelessness.
As of 31 March 2025, 1,764 households were on the social housing register in the Cairns region. Around 50 per cent of these households were singles or couples and nearly 20 per cent were over 55 years of age.
The Cairns Social and Affordable Housing project will specifically respond to the lack of available housing in Cairns for singles and couples by delivering a 60/40 mix of one and two bedroom apartments.
The 5.4 hectare site will contain four distinct villages, each spanning three storeys, with interconnected buildings to foster a sense of community and safety. The homes will be modern, low maintenance and energy efficient set amongst landscaped gardens, picnic grounds, barbecue areas and playgrounds.
Modular construction
Key insight: Adopting modular construction was crucial to overcoming local labour and skills shortages compounded by the prolonged wet season experienced in Cairns.
The construction industry is experiencing significant cost escalation, supply chain constraints, labour and skills shortages compounded by very busy non-residential construction sectors.
These issues are exacerbated in regional areas, including Cairns, which has limited sub-contractor availability generally and especially limited availability of formwork, steel-fixing and concrete placement. Delivery in Cairns is also impacted by the region’s prolonged wet season that typically runs from early December to late March each year.
Tetris undertook a multi-stage market engagement process with nearly 30 potential Tier 1 and 2 builders that failed to identify a builder able to commit to a fixed design and construct contract and fixed construction program.
Prefabricated modular construction was determined to provide a delivery solution that overcame both the limited local sub-contractor market and prolonged wet season constraints.
FCC Construction Australia (a subsidiary of FCC Group – a top 40 global construction company headquartered in Spain) in partnership with Modscape (a national Tier 2 modular construction company) participated in an early contractor involvement process to progress the project. Engaging in this collaborative process has allowed the FCC/Modscape consortia to commit to a fixed cost and program for the delivery of the project. It is anticipated that construction will be completed by the end of 2026.
Concessional financing
Key insight: Low-cost Australian Government financing was essential to realising this transformational project.
The Queensland Government, through the Housing Investment Fund, is the main funder of this project, supporting the delivery of 490 social and affordable homes utilising a hybrid grant/subsidy support model.
In addition, a specific financial solution was developed for the project incorporating:
- Commercial bank (ANZ) and NAIF fixed-rate debt during the construction phase.
- Concessional full-tenor fixed-rate financing from HA during the operations phase.
This represented the first financing commitment from the NAIF in the housing sector, helping to unlock a previously unutilised source of debt in the sector. It also represented the first time NAIF and HA participated alongside each other, maximising the use of these concessional forms of financing for the benefit of the project and its overall cost.
Community Housing Limited
Key insight: Working with an experienced community housing provider, enables delivery of a scalable model for financing, development and operation of social and affordable housing, delivering person-centred and place-based housing services.
Established in 1993, CHL is the largest community housing organisation in Australia with over 12,000 properties under management and is participating in the project via its Queensland arm, Community Housing (Qld) Limited (CHQL).
CHQL provides quality tenancy and asset management services to over 1,700 properties across Queensland with offices located at Brisbane, Robina, Maryborough, and Roma. CHQL strongly believes that a stable long-term home provides the foundation for individuals and families to access appropriate educational, employment or social services and make positive connections within the community.
CHQL will operate the Woree precinct with onsite staff and support from its broader regional operations. CHQL will partner with local service providers to maximise the delivery of services to enable residents to access independent living support. CHQL will also lead a community development model with staff who will work with partners to deliver lifestyle programs to reduce social isolation and encourage active lifestyles.
This approach will provide residents with a ‘menu’ of support and participation opportunities to access services and engage in the community. Residents will also be assisted to bring along any existing support arrangements they may have in place already.
CHQL is engaging with the local Housing Service Centre to deliver on an under-occupancy strategy, which will aim to house seniors seeking to downsize from social housing and those waiting on the housing register, as well as those unable to access market product.
This project continues a long and successful partnership between CHL and Tetris, having previously delivered or currently delivering over 3,300 new homes together nationally.
Find out more in the full “Answering the Call for Regional Housing” Report.
Acknowledgment of Funding
The research presented in this report was funded by the RAI’s Intergovernmental Shared Inquiry Program. The program delivers an annual public interest research agenda focusing on topics of strategic importance to regional Australia through a partnership with federal, state and territory governments.
The RAI acknowledges our funding partners: Australian Government Department of Infrastructure, Transport, Regional Development, Communications, Sports and the Arts; New South Wales Government Department of Primary Industries and Regional Development; Queensland Government Department of Natural Resources, Mines, Manufacturing, Regional and Rural Development; South Australian Government Department of Primary Industries and Regions; Victorian Government Department of Jobs, Skills, Industries and Regions; and Western Australian Government Department of Primary Industries and Regional Development.
The views expressed in this report are those of the Regional Australia Institute and are not necessarily those of the Australian Government or the Department.