The Malinauskas Government cannot allow property privilege to hold Adelaide back | Bruce Djite

With rental vacancies at 1.03 per cent in August who could possibly be anti-housing and waging a campaign against increased housing supply, asks Bruce Djite.

South Australia stands at a crossroads, with vast opportunities in defence, clean energy, infrastructure expansion, and education.

To seize these opportunities, we must embrace growth – not for growth’s sake, but to create a more complex economy that attracts higher-paying jobs and great careers, leading to improved standards of living.

For decades, South Australia had stood still.

The infamous Le Cornu site in North Adelaide – a relatively large parcel of vacant land in a prime location crying out to be developed for 30 years – painted an accurate picture of a state going nowhere fast.

For too long the state has watched on as opportunities consistently passed by.

Now, we face a housing crisis of unprecedented scale, with our competitive advantage of relative affordability rapidly eroding.

The Adelaide median house price is now $816,000 compared to Melbourne’s $914,000 with new PropTrack data indicating Adelaide’s house prices growing by 0.49 per cent in August compared to 0.25 per cent nationally.

SA Executive Director of Property Council of Australia Bruce Djite. Picture: Tom Huntley

Eighty Eight O'Connell construction in North Adelaide. Picture: Supplied / Commercial & General

The picture is no brighter for renters, as South Australia also endures the lowest residential vacancy rate in the country.

With rental vacancies at 1.03 per cent in August who could possibly be anti-housing and waging a campaign against increased housing supply?

Despite our population growth running below the national average for decades, we have failed to develop enough housing to meet demand.

According to the Australian Bureau of Statistics, South Australia’s population growth was 1.65 per cent for calendar year 2023.

While historically this is relatively strong, it is only catching up to the national long-term average.

The cumulative lack of development, coupled with reasonable population growth has resulted in a crisis, which threatens to leave an entire generation facing the prospect of housing being beyond reach and indeed, beyond hope.

The state government has embarked on a record land release, pursuing a largely greenfield-oriented housing policy.

But metropolitan Adelaide, especially areas close to existing infrastructure, amenities, education, and jobs, has abundant opportunities that cannot go to waste.

Infill sites like Glenside, West End Brewery, Keswick Barracks, UniSA’s Magill campus, and MAB’s Brompton Gasworks offer a once-in-a-lifetime chance to deliver significant housing supply in a planned and co-ordinated way.

Recently, Glenside residents, already living in medium-density towers, protested others being afforded the same opportunity for safe and secure housing.

This hypocrisy is disheartening.

There was an argument made over the weekend that allowing increased density on the site would be unfair to residents already living on what once was public open space.

How nice to be in a position of such privilege.

Fairness is about increasing the supply, diversity and choice of all forms of housing. Fairness is about a fair go, providing those aspiring to jump on the property ladder with a legitimate chance to do so.

The next stage of the Glenside development will deliver 15 per cent affordable housing, crucial for young people and our key workers – those who educate our children, save lives in our hospitals, and ensure our safety.

We want to attract, retain, and promote capital and talent to this state – these NIMBY campaigners advocate the opposite.

For too many years, politically motivated scaremongering has led to significant policy failures, which has contributed to mortgage stress, homelessness, and insecure housing arrangements.

Housing and Urban Development Minister Nick Champion at Bird In Hand winery. Picture: Mark Brake

If the Housing and Urban Development Minister Nick Champion does not approve this code amendment, it would signal to developers, builders and investors that the Malinauskas government’s “pulling every lever to address the housing crisis” commitment is nothing more than rhetoric.

It would show a preference for a handful of NIMBY voters over the greater good of the state.

We must not shut the door on future generations or the thousands of health professionals, defence and technology experts, infrastructure personnel, and educators we so desperately need for South Australia to remain the best economy in the country and a magnet for capital and talent over the long term.

The Property Council advocates for a prosperous South Australia and vibrant communities.

It is disappointing but not unsurprising to see opposition to progress and prosperity.

Let’s grasp this opportunity, let’s grasp this moment in time, embrace growth and ensure a brighter future for all South Australians.

Bruce Djite is SA Executive Director of Property Council of Australia