Four newly constructed homes have gone on sale in Port Augusta, with a state government leaseback in place for essential workers at attractive rates, including an ongoing maintenance program, for at least ten years with an optional five-year extension.
Renewal SA, the state government’s property development agency, listed the four homes for sale on Monday, hoping an investor will seize the opportunity to benefit from a long-term partnership with positive returns.
These two- and three-bedroom houses are the first to be completed under Renewal SA’s Regional Key Worker Housing Scheme, managed by its Office for Regional Housing.
The houses are leased to the Department for Infrastructure and Transport’s Government Employee Housing division and will help to attract healthcare workers, law enforcement officers, educators and other essential service workers to the area.
Matt Hunt, Director of the Office for Regional Housing, said residential investments de-risked by the state government provide attractive opportunities for investors and urged interested parties to enquire quickly.
“It’s not often housing investors are presented with the opportunity to receive guaranteed rent from long-term, stable tenants. I anticipate significant interest in this opportunity, and there will be more of them to come,” Mr Hunt said.
These are the first of 30 houses across South Australia to hit the investment market under a pilot project for the Regional Key Worker Housing Scheme. As construction is completed on the remaining houses in the pilot program, a growing pipeline of investment opportunities is expected to come online.
“There is a shortage of regional housing right across South Australia. We are working at pace to deliver houses for key workers that will ultimately be owned by private investors under the same conditions,” Mr Hunt added.
Sale documents released by Renewal SA, confirms weekly rent for the Port Augusta homes will start at $465 for the two-bedroom house and $600 for the three-bedroom houses, with these rents guaranteed as a minimum for the 10-year lease.
Additionally, rent will be subject to an annual fixed increase of 2.5% as well as multiple reviews throughout the rental term to ensure rates meet market conditions. Should there be periods of vacancy, the state government says it will continue to guarantee payments.
Construction of the four dwellings was completed in October 2024, with essential workers starting to move in soon after handover.