Developers warn housing shortage risks COVID recovery

Developers have sounded an alarm over SA’s housing shortage, warning economic recovery is at risk without changes.

South Australia will waste opportunities from the COVID-19 population increase if the State Government does not give builders more certainty around planning laws, developers have warned.

The Urban Development Institute of Australia wants the release of draft findings of a planning review into Adelaide’s growth areas.

The group’s chief executive, Pat Gerace, said developers urgently needed more information about the future of Adelaide’s boundaries, height restrictions and infill possibilities.

“All these things affect the strategy of the developers in this state and how they go forward with their plans for more dwellings,’’ he said.

“They don’t have that certainty but we have population pressure, and the impact is being felt at the moment in (higher) purchase and rental (demand).”

UDIA SA chief executive Pat Gerace.

The housing market is under strain because thousands of South Australians are returning to the state, or opting not to leave, because of COVID-19 uncertainty.

Mr Gerace said certainty had been set in the 2016 Planning, Development and Infrastructure Act.

But he said a five-year review of the legislation – a Metropolitan Growth Management Plan – would not be released until the end of the year, which was too late. The government declined to comment yesterday but The Advertiser understands it is looking to fast-track the review.

The real estate industry is struggling to keep up with demand for properties, with 20 applicants for each rental home, as revealed by The Advertiser this week.

“Even before COVID, we were pushing the government for some direction around the review, but now COVID has come along and you can’t just turn the tap on over night,’’ Mr Gerace said.

“We don’t want to be a victim of our success, but if we don’t act, we are going to feel the pain before the market can react.”

Maria Palumbo, chief executive of community housing provider Junction, said people welcomed the “enthusiasm and investment” caused by increased population, but not the associated housing problems. She said all levels of government must do more to encourage the market to build affordable housing.

“Fewer people leaving SA due to the pandemic and more people coming back to live in our city is driving our net population to new highs,’’ Ms Palumbo said.

She said the “rental crisis” was forcing families on working incomes to sleep in caravans and cars.