Twenty-six newly built state government-owned houses spread across regional South Australia have been listed for sale, offering investors access to decade-long leaseback deals at attractive rates.

Renewal SA’s Office for Regional Housing is seeking interest from private investors who may be attracted by long-term, low-risk investment properties located in the Limestone Coast, Riverland, Copper Coast and Ceduna.

Matt Hunt, Director of Renewal SA’s Office for Regional Housing, said the sale was a rare opportunity for investors to secure long-term, managed leases that would be attractive to a market looking for hassle-free, tax-efficient returns.

“At a time of significant market instability, what we have on offer is an attractive opportunity for investors to include a strong and stable investment into regional South Australian housing into their portfolios,” Mr Hunt said.

Homes listed for sale:

• Ceduna – six homes (three two-bedroom, three three-bedroom)
• Kadina – five homes (two two-bedroom, three three-bedroom)
• Moonta Bay – four homes (two two-bedroom, two three-bedroom)
• Mount Gambier – six homes (two two-bedroom, two three-bedroom, two four-bedroom)
• Renmark – five homes (two two-bedroom, three three-bedroom)

The homes were all built in the past 18 months by local construction companies, through the Regional Key Worker Housing Scheme (RKWHS).

All houses will be occupied by government workers in education, healthcare or law enforcement, with tenancies managed through the Department of Infrastructure and Transport’s Government Employee Housing office.

Sale documents released by Renewal SA confirm weekly rental returns of up to $540 for a two-bedroom home, $655 for a three-bedroom home and $650 for a four-bedroom home, depending on location.

“These starting weekly rentals will be subject to fixed annual increases of 2.5% and regular market reviews,” Mr Hunt said.

“There is no vacancy risk to the investor for the full ten-year lease period and possible five-year extensions.

“Our contracts also cover tenancy management, property maintenance and property refresh services at the end of leases, where we will paint, re-carpet, fix any damages and landscape.”

The Office for Regional Housing selected national real estate agent Harcourts to sell the properties, following an open tender process.

Mr Hunt said he expected broad interest in the opportunity and was open to selling properties individually, in groups or even as a portfolio of assets.

“We are open to all 26 houses being sold in one transaction,” he said.

“But we don’t expect that will happen.

“Previous opportunities of this kind have lent themselves to investors with self-managed super funds and smaller-scale investors looking for strong, safe opportunities.”

The Regional Key Worker Housing Scheme is responsible for the construction of 30 homes since the Office for Regional Housing was established in 2023.

Four of the 30 homes were sold earlier this year in Port Augusta.

“The homes we sold in Port Augusta were the first to be delivered under the scheme,” Mr Hunt said.

“We used them to get an understanding of how the market might respond to such an investment opportunity.

“We received a reasonable amount of interest in the homes, resulting in an interstate sale to an individual with a self-managed superannuation fund.”

Although the sale of the remaining 26 homes will all but finalise the current stage of the RKWHS, Mr Hunt said he expected a steady stream of opportunities to flow from similar initiatives.

“We are actively working to unlock dozens of innovative opportunities for investors to be involved in, either by purchasing completed homes from the government, or through mechanisms that enable direct private investment in government-leased housing,” he said.

The Office for Regional Housing was established in 2023 with a commitment to working with local governments, economic development agencies and employers to address housing shortages in regional South Australia.