Mapped: 44 major housing and commercial developments that will kickstart SA’s economy

Dozens of major developments involving thousands of construction workers across the state have continued despite the shutdown. We examine each project and explain why they’re critical to SA’s coronavirus recovery.

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Construction is one of the few industries to escape relatively unscathed during the coronavirus crisis, with major developments across the state keeping the local economy moving.

Thousands of construction workers have continued to work on major housing projects in the suburbs, new office, apartment and hotel towers in the CBD, and health and education upgrades backed by unprecedented levels of State Government funding.

But as dire economic forecasts point to a crash in demand for new homes, rising unemployment and cuts to private investment, there are fears some projects may be delayed or cancelled altogether.

MAJOR PROJECTS ACROSS SOUTH AUSTRALIA

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The Federal Government’s $688 million HomeBuilder program, offering $25,000 grants for major renovations and new homes, has been broadly welcomed by the sector.

But developers of major projects in SA say more needs to be done to support the local industry.

Hickinbotham Group managing director Michael Hickinbotham.

The state’s biggest home builder, Hickinbotham Group, is currently overseeing the $1.2 billion Liberty and Eden housing projects at Two Wells, and is awaiting final State Government approval for a $215 million estate at Seaford Meadows.

Managing director Michael Hickinbotham said restricted access to sales offices and display villages during the coronavirus shutdown had affected sales of new homes.

He welcomed last week’s stimulus package but feared ongoing nervousness would continue to depress the sector.

“Other stimulus measures for the sector could include a stamp duty exemption for new home and land packages, and fast-tracked land rezonings and development approvals to drive both metropolitan and regional growth and job creation,” he said.

“Every dollar spent in the construction industry grows to become five dollars spent in the broader community, which drives economic growth and job creation like nothing else.”

Last month, the HIA released new forecasts pointing to an expected 25.7 per cent decline in SA home building activity, down from more than 10,600 new homes in the last 12 months to just 7900 next financial year.

The Federal Government’s stimulus announcement last week will soften the blow, recognising that the development sector is one of the country’s biggest employers.

In SA, thousands of construction workers are currently employed on housing projects including the $1 billion West development at the former Football Park site, the $400 million Glenside estate, Peet’s $265 million Tonsley Village project and Fairland’s Vista development, which will deliver more than 1100 homes at Seaford Heights.

At Port Adelaide, Starfish Developments and Cedar Woods have commenced early work on their Dock One and Fletcher’s Slip projects.

And local developer Arcadian Property is overseeing the $500 million Springwood estate at Gawler East – a 10-year project that will create around 1000 jobs during construction and almost 2000 homes north of Adelaide.

The $500 million Springwood housing development at Gawler East.

Arcadian chief executive Warwick Mittiga said while short-term stimulus measures were welcomed, the State Government needed to focus on long-term growth strategies, including boosting the state’s population.

“As an industry in South Australia I don’t believe we should just be putting our hand out for money – we want appropriate incentives to help us grow the wider economy and a real focus from State Government on growing our population will support that,” he said.

“South Australia is in a fantastic position to take advantage of everything that is great about our state and our success in managing COVID-19 so far.

“We can’t just aspire to rely on a nice lifestyle, however, as this won’t create the jobs and economy we need to keep our population here and growing.

“Make it easier for developers to unlock land, help support home building with the right stimulus, and incentivise new industry to relocate to South Australia.”

Palumbo’s Sofitel hotel and apartments project on Currie St.

While greenfield and infill housing developments bubble along, new apartment, hotel and office projects in the CBD have also continued to support thousands of construction workers.

Flagship’s $85 million Penny Place apartment tower, Palumbo’s $140 million Sofitel hotel and apartments project, IHG’s $60 million Indigo Hotel and SkyCity’s $330 million expansion of the Adelaide Casino are all well underway.

By early next year, work would have commenced on several more CBD projects, including Cbus Property’s $300 million office tower at the former Planet nightclub site and Commercial & General’s $320 million SAHMRI 2 project in the city’s biomedical precinct.

In the regions, several major developments are underway, many aimed at boosting visitation.

In March, Monopoly Property Group started civil construction on a new $42 million tourist resort at Wallaroo, while EDP Hotels’ $45 million redevelopment of the Bridgeport Hotel in Murray Bridge is due for completion in the first half of next year.

Winemaking giant Seppeltsfield recently unveiled plans for a new $50 million luxury hotel, aimed at attracting 150,000 visitors over the first five years.

An artist's impression of the $220 million Wallaroo Shores housing development.

However, severe downturns in the tourism and retail sectors have prompted other developers to put the brakes on their projects.

Singapore’s Chip Eng Seng has pushed construction of a new Hyatt hotel on Pirie St into next year, as occupancy at its Ibis Styles Grosvenor Hotel on North Tce plunged to “single-digit” levels since March.

The $360 million redevelopment of the Burnside Village Shopping Centre has also been put on hold “until there’s greater clarity within the economic environment”, its developer says.

While ruling out additional grants or stamp duty cuts, the State Government has hinted that further measures to help stimulate the housing and construction industry could be on their way.

It too has been providing work to builders in recent months, rolling out its $1.3 billion capital works program to upgrade more than 100 public schools across the state, and continuing its transformation of the old Royal Adelaide Hospital site into the Lot Fourteen start-up and innovation hub.

Urban Development Institute of Australia SA chief executive Pat Gerace said a strong and confident development sector “builds confidence in so many other parts of our economy”.

“With a total annual output in SA of close to $13 billion, it’s not just the tradies but all of the related professional services, manufacturing and retail that keeps so many South Australians in jobs,” he said.

“One of the best things about the development sector in SA is that it is largely made up of great South Australian companies who keep reinvesting in our state.”

Artist’s impressions of the new $140 million super school at Angle Vale. Picture: Supplied