The Urban Development Institute of Australia (UDIA) National has welcomed the Federal Government’s landmark housing agreement with South Australia, describing it as a critical first step toward the scalable delivery of more housing across the nation.
UDIA National President, Oscar Stanley, said the agreement demonstrated the kind of supply-focused reform needed to unlock housing delivery at scale.
“The industry applauds the Government’s supply-focused measures that create a template for housing creation around Australia and also provide a test-bed to fast-track housing which is often held up by planning and enabling infrastructure,” Mr Stanley said.
The agreement is expected to unlock 17,000 new homes across South Australia, including almost 7,000 for first home buyers, through a combination of concessional finance and matched grant funding aimed at accelerating enabling infrastructure and urban renewal.
Key elements of the agreement include:
- A $300 million concessional loan to deliver additional water infrastructure in Adelaide’s northern suburbs, directly unlocking and delivering 4,000 new homes.
- A $50 million, three-year concessional loan for civil works to establish a first-home-buyer-only precinct of 400 homes within the Playford Alive urban renewal development.
- A $184 million concessional loan to support the delivery of more than 1,700 homes across multiple urban renewal projects in metropolitan Adelaide; and,
- $133.6 million in grant funding, matched by the South Australian Government, to deliver 750 dwellings for first home buyers through complementary housing programs.
Mr Stanley said the agreement shows what is possible when governments work directly with industry to tackle the structural barriers to housing supply.
“We are enthusiastic about what can be achieved in all states with this approach to housing that targets not only the barriers to supply but also drives housing outcomes for middle Australia as well as first home buyers,” he said.
“The outcomes of this agreement reinforces the importance of greenfield developments in meeting the National Housing Accord targets.
Greenfield can often be a more practical housing typology in the current market environment, which can move quite fast, particularly when Government invests in enabling infrastructure, just like in this agreement.”
UDIA SA Chief Executive Liam Golding added long-standing UDIA advocacy highlighted the critical role of infrastructure in unlocking housing development.
“Our Grow. Reform. Build.26 advocacy agenda calls for funding partnerships between State and Federal Governments to deliver infrastructure and the $350 million in concessional loans announced today is warmly welcomed,” he said.
UDIA National looks forward to seeing similar agreements rolled out across other states and territories to help address Australia’s ongoing housing supply challenge.