Adelaide developer wants maximum building height increased if affordable housing is increased

Requiring developers to do the “heavy lifting” to address SA’s housing crisis needs a trade-off – or new projects will simply be unviable, a leading builder says.

New Adelaide apartments must go higher if the state government forces builders to do the “heavy lifting” on increasing affordable housing, a leading developer says.

Glen Vollebregt, of Barrio Developments, said increasing maximum heights was a cost-free way to reduce increase pressure the state government’s proposed affordable housing changes would place on developers.

Affordable housing rules would cover all of greater Adelaide for the first time under the proposal, while the number threshold to trigger the requirement for cheaper homes would be reviewed.

It means affordable housing would be built in Burnside or Springfield for the first time – if new estates or apartments go there – while developers may be required to offer more homes at cheaper prices. Affordable housing in metro Adelaide is sold at $495,000, but there are variances.

Mr Vollebregt said while extra affordable housing was needed across the metro area, the increase could put “substantial” pressure on new projects – making them unviable – because Adelaide was already experiencing “sky-high” construction costs and a tradie shortage.

Quaywest by Adelphi, the new Barrio Developments project at Glenelg North.

“We are literally flying concreters in from Sydney, electricians and technicians from Brisbane – such is the shortage of skilled trades in some areas, so to add a further burden without some other trade-off, it will put upward pressure on house and apartment prices,” he said.

Mr Vollebregt – whose company is behind two Glenelg apartment projects – said allowing “decent extra height” on buildings was one way to alleviate increased pressure, and cost taxpayers nothing.

“To lump the full cost on developers while we are a construction crisis, something simply has to give – like reducing application times from what can be two years, to something sensible like a few months.

“If developers are doing the heavy lifting for the state government, and providing affordable housing, there needs to be something to assist developers who do that.”

Planning Minister Nick Champion said: “We’re not looking at changing the current policy in relation to height limits.”

Developers can already apply for 30 per cent height bonus if their development meets certain criteria, such as a minimum of 15 per cent affordable housing in a building, but Mr Vollebregt said it wasn’t happening as much as it needed.

“To support the provision of affordable housing, building heights may be increased above the maximum specified in a zone,” he said.

“This just isn’t happening to the extent it needs to, to get projects to be feasible – and while there is such a need for more regular housing and more affordable housing, and during a construction crisis – governments need to enable this no-cost solution to get housing to be built.”

Right now, any developments with 20 or more homes must make 15 per cent of them affordable, but that number is now under review.

Developer Frank Vounasis said an option was to use housing density instead of the number of homes as a trigger.

“I am not sure how the commission plans to manage the reduction in the 20 dwelling per allotment threshold matter, an option is to look at density per m2 and look at that as a metric for measurement,” he said.

Mr Vounasis – Leipzig Australia’s property director at Kadina Central and part of the team behind the groundbreaking Dublin proposal – said extending affordable housing across Adelaide was fairer and consistent.

“I’d even go one step further and say that policy and code amendments could start considering similar ways of thinking for employment land, for example our Dublin Circular Green Economy Precinct Code Amendment, which intends to provide a commercial advantage due its location and lower cost of power availability once developed.”

Will Frogley, Master Builders SA CEO, said the policy was “great in theory”, could work in Adelaide’s outer suburbs, but there was “no way developers can buy, build and sell homes in Burnside or Unley for $495,000”.

“Even if a 1000m2 block in Kilburn was subdivided into six allotments, builders would still struggle to meet the criteria.

“The federal government must provide rebates and incentives and not just change planning codes and lump the burden on developers.

“We need to set realistic goals to ensure South Australians can realise their dream of getting into the market.”