It is clear how much the economic climate has changed over the past financial year both across the world and in South Australia in the property and development sectors.
The Adelaide market continues to be resilient off the back of continued positive net migration and investment in our state’s future, particularly in defence and innovation.
However, the social and economic challenges faced by prospective home buyers coupled with pressure on the rental market is having a significant impact in the residential sector.
We are committed to working closely with industry to increase the supply of housing that is so crucial to unlocking economic opportunities for people and businesses and fast-tracking new housing in our state.
This update provides detail on recent budget announcements by government and their impact on the development sector as well as the latest on Renewal SA projects and initiatives.
Spotlight on the State Budget
As expected, housing was a key feature of the 2023-24 State Budget, handed down Treasurer Stephen Mullighan in June.
The government’s commitment to resolving South Australia’s housing challenges remains a core focus through increasing supply in social and affordable housing. Renewal SA has been tasked with playing a larger role in this objective in partnership with the private development sector.
Reforms such as abolishing stamp duty and streamlining planning approvals for eligible first home buyers, along with more accessibility to lending through HomeStart, will enable people to get into their own homes sooner – provided that we as a sector continue to increase supply.
Participation, leadership and regulation through the land development sector is critical to achieving this increased supply and the state government has announced a number of key land releases.
The budget also provided for continued investment in the defence industrial sector and supports some of our public realm and innovation projects, including:
- $15 million for waterproofing and repair works to the Adelaide Railway Station and Environs Redevelopment Plaza
- $33 million to repurpose the Australian Space Park proposal into a common user facility for the space industry at Lot Fourteen.
Projects such as these demonstrate the confidence that government, industry and the wider community have in the capacity of the property and development sectors to support and drive economic growth.
The state government has also announced a number of targeted investments in its $474.7 million Housing Package which aims to directly support the building of 3,600 homes over the next five years.
The Housing Package includes a range of Renewal SA-led and associated projects and initiatives including:
- delivery of more social and affordable housing at Playford Alive, Bowden and Prospect
- the single largest land release in the state’s history in the northern and southern suburbs unlocking potential to deliver more than 25,000 homes
- development of the former bus depot on Franklin Street, bringing quality, sustainable affordable housing to the market-district with 392 apartments, including at least 137 social and affordable homes. The precinct is also targeting a carbon neutral operating environment as part of reaching the state’s 2050 carbon neutral target.
- establishment of the new Office for Regional Housing to facilitate the delivery of appropriate housing in regional communities and delivery of a pilot Regional Key Worker Housing Scheme to build more housing for health workers, teachers, police officers, and other regional workers.
A stronger pipeline of projects
The historic merger of University of Adelaide and UniSA will bring about development opportunities for the market, with both the UniSA Magill Campus and land at Mawson Lakes transferring to the Renewal SA landbank as part of the agreement.
While the main campus at Magill will be leased back to the university for up to 10 years, land opposite the campus is anticipated to be master-planned within the next six months. Site due diligence will occur in the interim with rezoning to commence over the coming two to five years.
Subject to initial site investigation work, land at Mawson Lakes is anticipated to become available for development within the next three years.
Renewal SA will be seeking private sector leadership and participation at the appropriate time to deliver on future development at these sites.
Housing in the southern suburbs
Renewal SA is seeking a developer to transform 45 hectares in Aldinga into a master-planned community in an area of Adelaide that is experiencing critical need for more supply.
A Request for Proposal process has recently closed and proponents will be advised of the evaluation result in the coming few months.
In Noarlunga, we will be delivering approximately 600 new homes on vacant land just behind Colonnades shopping centre. We are working with SA Housing Authority to deliver this project which will have more than 15% affordable housing including affordable rentals via Community Housing Provider partnerships, plus at least 80 new social housing dwellings. We will be engaging with all relevant stakeholders to ensure master planning considers the needs of the community.
We are also continuing with planning that will enable the delivery of 1,000 homes in the new suburb of Onkaparinga Heights. The area was renamed following rezoning of land at the southern end of Hackham. The project will deliver a diverse range of housing options including a minimum of 15% affordable housing.
Renewal SA continues to support the growth of our sovereign defence capabilities in South Australia through partnerships with the Commonwealth Department of Defence.
We are leading the consolidation and packaging of land to enable the further expansion of the Osborne Naval Shipyard to accommodate construction of Australia’s new AUKUS submarines. The state government will receive land at the Keswick Barracks and at Cultana, north of Adelaide in exchange for land at Osborne. This arrangement will support both the Commonwealth’s AUKUS program and facilitate a range of other priorities of the South Australian Government including hydrogen developments in the Upper Spencer Gulf.
Renewal SA is also leading the development of a Deeper Maintenance and Modification Facility (DMMF) for Boeing 737-variant military aircraft at Penfield. The DMMF will be the first of its kind in Australia and its location will allow it to be seamlessly operated as an extension to RAAF Base Edinburgh, servicing military aircraft based in South Australia and beyond.
Expressions of Interest for the construction of the DMMF closed recently, and we will now seek tenders from a shortlist of EOI respondents.
Anne Skipper AM will step down from our Board of Management at the end of this month after four years as a director.
During her time on the board, Anne has made a valuable contribution through her strong focus on governance, leadership and people. Her insights and expertise have helped us to navigate some complex project and organisational change initiatives, and we would like to thank her for the role she has played in establishing a strong foundation for Renewal SA’s future.
Growing our workforce
To support the state’s expanding portfolio of projects – particularly in defence, affordable housing and major projects – we are growing our team at Renewal SA.
While we understand the urgency to deliver projects in a timely manner, we are equally determined to ensure we don’t compromise on delivering quality developments to the highest standards. Building our workforce will enable us to achieve this.
If you are looking for a new role or know someone who may want to make a move that helps them grow their career and impact some of the state’s largest projects, visit the careers section of our website.
Talk to us
We have recently launched a new look for our website and I encourage you to check it regularly for major projects and initiatives that are open to developers, investors, designers, stakeholders and people interested in our projects. The website has information on current land sales, opportunities through the Office for Regional Housing as well as current and future projects.
While we acknowledge that we are working to achieve an ambitious agenda and that there will undoubtedly be headwinds and challenges, we recognise and value the partnerships we have with industry.
Collaboration between the private and public sector is how we develop lasting solutions for our state, and we look forward to continuing to work together to deliver for South Australia.
We are always looking for ways to enhance, engage and connect with the sector, so please don’t hesitate to contact us.