Hundreds of new homes could be delivered sooner in Adelaide's inner suburbs under a plan by the South Australian and Commonwealth Governments to fast-track the release of two strategically located Defence sites.

Renewal SA has begun due diligence and planning for the future redevelopment of Hampstead Barracks at Greenacres and is seeking to acquire the site through a national Defence land estate divestment program announced by the Federal Government in February this year.

The South Australian and Commonwealth Governments will begin discussions on the potential future acquisition of the site as part of this divestment process.

The state’s $500 million Housing Fast-Track Fund is also available to support the acquisition of strategically located land that can help deliver more homes sooner.

Defence personnel currently based at Hampstead Barracks, including administration staff, cadets and Australian Defence Force Reservists, will relocate temporarily to Keswick Barracks in 2027 before personnel from both sites move permanently to upgraded and expanded facilities at Warradale by 2030, two years earlier than planned.

Renewal SA already owns the Keswick Barracks site, having secured the land through an AUKUS-related strategic land swap with the Commonwealth Government in 2023, with planning for its future redevelopment progressing through the State Government's Inner South Masterplan.

Both sites are strategically located, well connected to amenities and public transport, creating an opportunity to deliver new housing close to the city.

Renewal SA Chief Executive Shane Wingard said the opportunities at both locations demonstrated the value of working with government partners to unlock strategically located land for housing.

"These are significant opportunities to bring more housing to established areas where people want to live, close to jobs, services and public transport," Mr Wingard said.

"We'll bring the experience we've gained through projects like Bowden, Prospect Corner and Southwark Grounds to Hampstead and Keswick, demonstrating what's possible when strategically located government land is unlocked to deliver more housing.

"Those projects have shown how thoughtful master planning can deliver more homes, housing diversity and high-quality public spaces while complementing the character of existing communities.

"The earlier-than-expected release of these sites gives us a chance to start planning now and ensure new housing can be delivered as quickly as possible once the land becomes available for development.

Mr Wingard said Renewal SA would not necessarily develop the sites alone and was open to partnering with the private sector to deliver the projects.

"We're open to master planning and delivering the sites, but the most likely approach is to partner with private sector partners to bring the vision to life," he said.

"Our role is to establish a clear plan for what these communities can become and create the conditions for investment that delivers high-quality housing outcomes at speed."

Keswick Barracks represents a longer-term urban renewal opportunity. Renewal SA has begun assessing the site's housing potential, with detailed heritage investigations of historic buildings on the site underway and investigations into infrastructure and services.

Both sites are located within established neighbourhoods, are serviced by existing amenities and are close to schools, shops and public transport.

"Sites of this size and location rarely become available," Mr Wingard said.

"They are well located, connected to existing amenities, surrounded by established communities and have the potential to deliver hundreds of new homes while complementing the character of their surrounding neighbourhoods.

"By bringing forward the development of the surplus Defence land, we're creating an opportunity to deliver more homes sooner, support housing diversity and will deliver long-term benefits for the community."

While no final development outcome has been determined for either site, both have the potential to support new housing, open space and community infrastructure, subject to detailed master planning, code amendments and community consultation.

Hampstead Barracks is one of four Defence sites in South Australia, and 67 nationally, identified for divestment by the Commonwealth Government in February as part of the Defence Estate Audit, which recommended the disposal of sites no longer aligned with Defence's current and future capability requirements.

Any acquisition of Hampstead Barracks by the State Government would be subject to commercial negotiations with the Commonwealth Government, as well as detailed due diligence and infrastructure investigations.