Long-term, secure rental agreements with guaranteed returns and up to $1 million in state government capital are among the benefits on offer in Port Pirie through an innovative housing investment opportunity announced today by Renewal SA’s Office for Regional Housing.
Developers are invited to submit an Expression of Interest (EOI) to build up to 10 rental homes in Port Pirie to house key workers in healthcare, law enforcement, and education.
This investment opportunity asks developers to finance and build the homes according to parameters set by Renewal SA.
The homes will then be rented back to the state government with a minimum 10-year lease commitment, maintenance agreements, and make-good provisions at the end of the lease.
Matt Hunt, Director of the Office for Regional Housing, said the delivery model aimed to build confidence in regional housing investment while offering stable returns for those partnering with the state government.
“Through the Regional Key Worker Housing Scheme pilot project, the state government financed and built key worker houses throughout the regions. We are currently in the process of selling several of these dwellings to private investors, with ongoing government leasing arrangements secured,” Mr Hunt said.
“Through this EOI, we aim to stimulate developer-led direct private investment in key worker housing. We are encouraging the industry to take the first step by providing long term leases backed by the state government.”
Renewal SA is further incentivising developers by contributing up to $1 million for civil infrastructure if developers create additional builder-ready serviced allotments as part of their developments.
“By offering additional investment to help with the cost of creating serviced allotments, we hope to encourage further development, compounding residential housing growth within the town,” Mr Hunt said.
Investment contributions will be capped at $50,000 per additional allotment, offering up to a maximum of $1 million in total for internal road, footpath, landscaping, water, power, and/or stormwater infrastructure.
“We know one of the biggest costs of development in the regions is getting land ready to build on, which can be a significant deterrent for projects or investments to get off the ground,” Mr Hunt added.
“We’re working to reduce that upfront cost to ensure land development can get underway.”
Port Pirie was identified by the Office for Regional Housing as a suitable trial site for the opportunity, which has the potential for expansion into other areas in the future.
Through this EOI, we aim to stimulate developer-led direct private investment in key worker housing. We are encouraging the industry to take the first step by providing long term leases backed by the state government.
Matt Hunt, Director of the Office for Regional Housing
Mr Hunt said the area’s high demand for government workforce housing, strategic proximity to increasing mining activities in the state’s north, and established construction industry were among the reasons for selecting the town.
But despite a diverse and dynamic industry base, local businesses are being constrained by low population growth, in part due to a lack of housing supply. A 2024 report released by the South Australian Business Chamber highlighted a lack of population growth, paired with an increased need for housing and supporting infrastructure, as among the top issues constraining business growth in Port Pirie and across the regions.
“The region is experiencing a significant housing and rental shortage that the state government is seeking to address,” Mr Hunt added.
The Office for Regional Housing was established in 2023 with a mandate to increase the supply of quality, affordable homes in the regions, thereby improving economic growth and quality of life.
Since its establishment, it has been driving private market investment through the Regional Key Worker Housing Scheme. Thirteen houses have already been built and are now occupied by key workers in Port Augusta Mount Gambier and Renmark, with 17 more expected to be completed in Kadina, Moonta Bay, Ceduna, and Mount Gambier by September this year.
The four houses in Port Augusta, which were the first to be completed under the scheme, were sold in January to a private investor, and the remaining houses under the scheme will be listed for sale in the coming months.
“This is the type of investment opportunity the Office for Regional Housing is working to drive across the state,” Mr Hunt added. “We appreciate the difficulty of residential development across the regions and the dynamic issues that arise from more remote locations, limited services, and scarce workforces.”
The EOI aims to identify a single developer or multiple developers with the expertise and financial capacity to deliver the best outcome for the state.