How To Invest In A Government-Tenanted Property

In today’s property market, knowing where to invest is just as important as knowing how.

For those looking to lease, buy or build, identifying growth hotspots can mean the difference between a flat return and a future-proof investment.

Amid a national housing shortage and shifting demographics, more Australians are turning away from traditional property investing and towards alternative models that offer stability, lower maintenance and long-term growth potential.

According to REA Group senior economist Anne Flaherty, the current climate is reshaping investor behaviour.

“We have a shortage of housing and that is driving more investors into the segment,” Flaherty says.

“If we think about the demographics of Australia at the moment, a lot of baby boomers are entering into retirement and we know that people’s risk tolerance decreases as they get older.

“So there’s a large pool of investors out there who are looking to decrease their exposure to risk.

For those seeking an investment with less hassle, Defence Housing Australia (DHA) presents a unique model, offering long-term leases with a government tenant and a range of unique property management services.

“For those who already invest in property, there is a degree of headache that goes along with owning property,” Flaherty says.

“There’s always things that need fixing and that go wrong, and there are some property investors out there who are looking for an investment solution that gives them that security of return but also decreases the amount of work that they have to do.”

In today’s property market, knowing where to invest can mean the difference between a flat-return and a future-proof investment . Picture: DHA

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DHA offers a unique property care service that these kinds of investors are looking for and are actively seeking new homes in growth regions including Rockingham, Brisbane, Townsville, Canberra and parts of New South Wales where demand is on the rise.

These hotspots combine strong rental demand with long-term lease security, making them attractive for investors.

Whether leasing an existing home or buying a new one that meets DHA’s specifications, investors can choose the path that best suits their strategy.

Why DHA investment is unique

DHA investment can offer stability, convenience and peace of mind.

Investors benefit from guaranteed rental income* – even during vacancies – and ongoing property care^ services that help to maintain the property’s condition.

Long-term lease agreements provide predictability, while DHA’s status as a government business enterprise offers a level of security rarely found in the private market.

Shane West, DHA’s Executive General Manager Property, says investors can get involved in various ways depending on their situation.

“DHA’s growth is driven by our commitment to provide quality housing that meets Defence requirements,” West says.

“We lease properties in most capital cities and major regional centres where the Australian Defence Force has a presence, ensuring they are integrated into the community and close to schools, shops and transport.”

DHA seeks a variety of property types within 30km of Defence bases including free-standing houses, townhouses and apartments and leases homes for three, six, nine or 12 years, with the possibility of extension.

Market rent is paid based on periodic independent reviews.

Whether leasing a current property, or looking to buy or build new to meet DHA requirements, investors have a number of pathways to suit their goals. Picture: Getty

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Innovative ways to become a DHA investor

DHA offers multiple investment pathways to suit a range of goals.

Leasing your own property to DHA involves entering a long-term agreement where DHA becomes your tenant and pays your rent while managing the Defence occupants – ideal for owners of suitable existing homes.

Alternatively, investors can purchase properties directly from DHA’s official suppliers to construct homes tailored to Defence needs.

“DHA is working with builders and developers all across Australia to secure leased properties for Defence members,” West says.

“We regularly review house and land packages and provide a commitment to lease the property once completed.”

Investors can buy these pre-approved properties from participating builders or real estate agents, and DHA will lease them back on a long-term lease if delivered to the agreed specifications.

This makes it easier for investors to find suitable properties in the right location with the right inclusions.

Spotlight on growth hotspots

Key cities are emerging as high-potential investment regions driven by population growth, infrastructure development and strong rental demand, particularly in areas with a significant Defence presence.

Rockingham, south of Perth, is experiencing steady population growth and infrastructure investment, driven by its coastal lifestyle and proximity to Defence facilities.

Townsville, a key Defence hub in North Queensland, benefits from stable population levels and large-scale infrastructure projects like the port expansion and Lansdown Eco-Industrial Precinct.

Brisbane is undergoing rapid growth in the lead-up to the 2032 Olympics with upgrades to health, education and transport infrastructure contributing to strong rental demand.

Canberra continues to be one of Australia’s most stable property markets, supported by a high proportion of government employment and low rental vacancy rates.

In Sydney, despite higher entry costs, sustained demand for housing, particularly near Defence sites, combined with long-term infrastructure projects, makes it a strong choice for long-term investors.

Key areas with a significant Defence presence are emerging as high-potential investment regions. Picture: DHA

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Tailored investment paths for everyone

DHA’s investment model is expanding to improve flexibility and accessibility for a broader range of investors.

In addition to offering tailored house-and-land packages with lease commitments through its network of builders and developers, DHA assesses existing homes for suitability and leases them when they meet Defence requirements.

By providing such an array of property investment solutions, DHA allows investors to make informed, strategic decisions providing long-term stability to suit a variety of lifestyles and financial goals.

For retirees or professionals seeking less hassle, long-term leases offer dependable income with reduced day-to-day involvement.

Given the national presence of DHA, first-time investors can purchase properties across a wide range of price points, in regions like Townsville and Rockingham.

More hands-on investors can build new homes to lease to DHA, while existing property owners can optimise their portfolio by leasing directly to DHA.

With flexible pathways and access to high-demand growth areas, DHA offers a government-tenanted solution for investors seeking both peace of mind and potential for growth.

To read stories from investors and explore real experiences with DHA’s property investment model, visit the DHA website.

Investors should always seek appropriate independent advice before making any investment decisions with DHA.

Disclaimer

* Rent may be subject to abatement under certain circumstances such as loss of enjoyment or amenity, or breach of lease terms. Rent is paid where the property is habitable. Should a property become uninhabitable during the term of the lease, or lessor breaches the lease terms, the rent may cease or abate and the lease may be terminated by DHA. Guaranteed rent is subject to the terms of the lease. DHA does not take into account an investor’s objectives or financial needs. Investors should always seek appropriate independent advice before making any investment decisions with DHA.

^ A comprehensive description of repairs included in our service and exclusions can be found in the Property Care Contract. For more information, please visit https://www.dha.gov.au/investing/property-care.