Builders sought to construct 90 more homes in SA’s suburbs
Dozens of “affordable” homes of about $400k will be built within 20 minutes of the city – but first, builders have to bid to secure the sites up for grabs.
Multiple builders are being urgently sought to construct 90 new homes across Adelaide to help deliver a $21.4 million, State Government economic stimulus package.
Bidders have until September 13 to submit a proposal to build on suburban plots within about 20 minutes of the CBD said Minister for Human Services, Michelle Lensink.
Most homes will be sold as affordable housing with a top price, land and home package, of $407,100, she said.
The stimulus, which is part of a wider $104.5 million government package announced in the recent State Budget, comes as ABS data published on Wednesday shows that the value of all construction work done in SA has fallen for a fourth consecutive quarter, to $1.42 billion from a peak of $1.57 billion in June 2018.
Shadow Treasurer Stephen Mullighan said the figures showed an alarming trend for the state economy.
“These numbers represent several hundred fewer houses being built and dozens less construction projects being carried out in SA,” he said.
Master Builders Association (SA) chief executive officer, Ian Markos, welcomed the housing stimulus but said it was clouded by uncertainty around looming land tax changes.
“The Marshall Government should admit they got it wrong on land tax, end the uncertainty and make people confident to invest in SA again,” he said.
“Increased investment will boost construction work and jobs growth.”
The new turnkey homes will be built in Felixstow, Findon, Mt Barker, Klemzig, Taperoo, Devon Park, Kidman Park, Woodville Gardens, Elizabeth Park and Mitchell Park with construction penned to begin in January 2020 and expected to last two years.
Affordable housing sales will be subject to strict eligibility criteria with single buyers restricted to an annual income of less than $85,000 (and asset limit of $485,000) with a combined income of no more than $110,000 (and asset limit of $594,000) for families.
Ms Lensink said the State Government was committed to building affordable homes to ensure home ownership was a reality for South Australians.
“We know housing affordability is a crucial issue for families and this program offers people on low and moderate incomes the opportunity to buy their own home,” she said.
Homes will be available for eligible buyers only for up to 45 days at a fixed price, before going on the open market.
This meant they were not competing with investors or wealthier buyers, she said.