HOPE Housing Fund outperforms Sydney property market with 12.2% growth

HOPE Housing Fund Management Ltd (HOPE) has reported strong returns for its first fund, outperforming the broader Sydney property market in the 12 months ending June 2024.

The co-investment fund, which supports essential workers to achieve homeownership, saw its portfolio assets grow by 12.2% compared to the Sydney property market’s 6.3% increase, as measured by the CoreLogic Index.

HOPE chief executive officer Tim Buskens said the results highlighted the importance of the fund’s property selection process.

“Our approach highlights the significance of selecting where to invest and at what price just as much as understanding what to reject,” Mr Buskens said.

Over the 12-month period, HOPE reviewed 43 properties, supported 17 purchases, rejected 11, and passed on 15 that were subsequently sold above fair value.

Mr Buskens noted that properties not approved under their review process are underperforming against their portfolio by 200-300 basis points.

The fund’s Buy Well Program has enabled approved homebuyers to secure homes on average within three months, with HOPE reviewing 2.5 properties per buyer during this period.

Since launching in October 2022, HOPE has supported the acquisition of 17 properties across 15 suburbs in Greater Sydney, partnering with 26 essential workers.

The HOPE model was developed in response to evidence that essential workers in Sydney are struggling to afford homes near their workplaces, leading to long commutes and housing stress.

The shared equity initiative co-invests up to 50% of the home purchase price for essential workers, allowing them to achieve homeownership while providing investors with access to a diversified residential property portfolio.

Mr Buskens said the fund is “transforming lives and delivering results that exceed our projections”.

There are currently more than 3,000 essential workers on the HOPE waiting list.