Affordable housing rules would apply to all of greater Adelaide, require more cheaper homes from developers under proposal

Affordable homes would be built in Adelaide’s most expensive suburbs – and developers required to offer more cheaper homes – under new plans.

Affordable housing rules would apply to some of Adelaide’s most expensive suburbs, while developers could be forced to offer more cheaper homes under wide-ranging changes to open up the city’s real estate supply.

Under a proposed amendment to SA’s planning code, affordable housing rules requiring developers to build homes at a lower price would extend to the entirety of greater Adelaide’s residential area.

The Affordable Housing Overlay currently covers about 55 per cent of that area, but exactly where is complicated – for example, it covers Unley Rd and sections around it, but not Malvern.

Suburbs such as Burnside or Springfield are currently exempt. The overlay is dotted across the north, east, south and western suburbs, and includes the CBD, Mount Barker, Victor Harbor and Barossa township.

Whether affordable housing is built in expensive suburbs depends on developers first buying available land there.

Affordable housing would be built in blue-ribbon suburbs such as Burnside under a new plan. Picture: Brenton Edwards

The proposal includes a review of the number of affordable homes developers are required to offer – right now, housing estates or accommodation buildings with more than 20 homes must have 15 per cent of those homes at a lower price point. Developers may be forced to offer more cheaper homes.

It would also review current incentives given to developers to encourage more affordable homes as part of new developments.

The criteria sets affordable housing at $495,000 for metro homes – but it can extend up to $569,250 – or $222,750 for land only. Prices are lower across regional areas.

Couple or families need to earn $140,000 or less, before tax, to be eligible, among other rules.

The proposal is an initiative from the government’s Housing Roadmap, and formal consultation with the industry will start next year to seek feedback.

Looking over Adelaide from the air, over the south parklands. Picture: Brenton Edwards

Housing Minister Nick Champion said the state government was “taking action” to boost the amount of affordable homes in new residential developments across the whole of Adelaide.

“We need to look at where and how affordable housing is being delivered to ensure it continues to help low-income households but doesn’t stymie development,” he said.

Frank Lepore, director of Leipzig Australia – which is developing the $70m, 115-home Kadina Central estate – said affordable housing needed to be “carefully managed”.

“Affordable housing presents an ongoing challenge that the government, first homebuyers and the state of South Australia continues to face and will face in the future,” he said.

“Developers, government, and other key stakeholders all have a role to play in addressing this key issue for the state and this will need to be managed carefully to ensure that affordable housing is available for buyers.”

The HomeSeeker website has information on buying or renting an affordable property and lists properties available to eligible South Australians.