Work has officially begun on a new 5.8-hectare residential housing estate in South Australia’s south-east, including new homes for essential workers, supported by Renewal SA’s Office for Regional Housing.

Led by Tatiara District Council, the development will deliver about 55 new homes on Ramsay Terrace in Bordertown, with five to begin this year to accommodate teachers, healthcare professionals and law enforcement officers.

These homes are an extension of the Regional Key Worker Housing Scheme (RKWHS), an initiative of the Office for Regional Housing that is currently finalising the delivery of the final six homes of 30 key worker homes across regional South Australia.

Renewal SA committed early to support the Bordertown project, allocating a total of $2.7 million for the five homes and early subdivision and civil works to help de-risk the development and respond to the growing need for housing in the area.

Tatiara District Council also secured $779,318 through Renewal SA’s Regional Housing Initiatives Program (RHIP) for the second stage of the development, following a 2024 application process targeting housing projects in economic growth areas that require assistance to get started.

Peter Gatsios, Renewal SA’s Executive Director of Residential Project Delivery and Assets, said the agency’s investment has helped get this project off the ground.

“Too often regional housing projects don’t get started due to high upfront servicing and construction costs long before any sales are achieved,” Mr Gatsios said.

“By contributing to civil works and bringing in a construction company to build the first five homes, we are facilitating a level of certainty that we hope will enable a steady stream of private sales and broader construction viability.”

As part of the investment, Renewal SA will retain five allotments within the second stage of the Ramsay Terrace development, with potential for more essential worker housing, community housing or similar.

Mr Gatsios said the increase in housing availability in the area would be welcomed by local businesses.

“Businesses in the area continue to say more housing is needed to grow the local economy,” he said.

Daniel Staude, Chair of the Tatiara Business Association, which represents dozens of local businesses, said housing shortages remain one of the biggest challenges for the region.

“Businesses have been hamstrung by a lack of available housing in the area for many years,” Mr Staude said.

“There is strong demand for additional services in Bordertown and the surrounding community, and businesses are ready to expand to meet that need, but attracting the staff required has been extremely difficult due to the very tight housing market.

“We’re pleased to see this development moving ahead and helping to alleviate some of these challenges.”

Tatiara District Council Mayor Liz Goossens said local businesses have faced these constraints for years.

“With demand for services continuing to rise, this development is an important step toward supporting local businesses and attracting the workers our community needs,” Mayor Goossens said.

Civil works, to be undertaken by local firm Tatiara Trench Diggers, will be followed by a three-stage sales and construction program surrounding a central reserve and wetlands.

Sales for private allotments in the first stage are expected to open this year, with block sizes ranging from 450 to 750 square metres.

Later stages will include blocks up to 1000 square metres, providing options for larger homes.

The project marks a significant step toward addressing housing shortages in the region and supporting economic growth in Bordertown.