State Government releases tender for affordable apartments on Greenhill Rd

The state government has released a tender for development of up to 180 affordable apartments on Greenhill Rd, including details of who will get to live in them.

The state government has commenced a formal search for a community housing provider to deliver up to 180 new affordable apartments on Greenhill Rd.

Tender documents released by the SA Housing Authority on Monday include preliminary concept images of what the development could look like, and detailed requirements for the replacement of 29 run-down housing trust homes with 100 to 180 new apartments.

Known as “Park Court”, the site is located just west of the Air Apartments in Eastwood. The project is expected to cost up to $60 million.

Under the terms of the tender, a minimum of 29 of the new apartments, or 20 per cent of the project, will be set aside for social housing, while about 60 per cent will be offered as affordable housing and the remaining 20 per cent offered to the open market.

Concept images of what the Park Court affordable apartments could look like.

“The zoning anticipates high rise apartment development with the potential to provide cafes or retailing at ground level and offices at lower levels,” tender documents say.

Build to rent projects, in which all apartments are retained and leased out by the developer, provide long-term tenure to tenants and are becoming increasingly popular on the eastern seaboard.

In the last state budget, the government announced a 50 per cent land tax discount for new build to rent projects, following similar incentives introduced in NSW and Victoria.

The Park Court project was first announced by the state government last month, when Human Services Minister Michelle Lensink described it as a “state-first build to rent initiative set to deliver much-needed affordable housing close to the city”.

“South Australians eligible for affordable rental are charged 75 per cent of market rent, leaving more money in their pockets for cost of living expenses and savings,” she said at the time.

“This project alone will inject up to $61 million during construction into our economy, supporting hundreds of jobs and providing a major boost for our building and construction industry.”

Concept images of what the affordable apartments could look like.

The Park Court housing trust apartments on Greenhill Rd, which will be replaced as part of the new high-rise development. Picture: Emma Brasier.

Under the terms of the tender, the successful provider will be responsible for building the homes and maintaining them for 49 years, after which the properties will revert to government ownership.

The state government will contribute at least $10 million to the project, including a $9 million land contribution and at least $1 million in grant funding to the successful provider.

It is expected to generate more than 400 jobs during construction.

Expressions of interest close on February 14, with a shortlist then invited to submit detailed designs and costings before the final selection of a successful development consortium by the end of next year.

The project is expected to be finished in 2023-24.

The build to rent project is part of a $550m decade-long housing strategy being driven by the government as a solution to a rising rental crisis.