Largest single land release bid to ease SA’s rental crisis

The State Government’s new housing policy aims to tackle South Australia’s growing housing crisis

As part of a plan to trigger almost $1bn worth of home construction and tackle an unprecedented housing crisis, the State Government has announced the largest single release of residential land in South Australia’s history.

Incorporated within four land parcels – north and south of the city – at least 23,700 extra homes catering for more than 50,000 people will come on to the market.

It is expected to be more than double the number of allotments released in Mount Barker in 2011 and four times the number released at Mawson Lakes about 20 years ago.

Where is the land being released?

The sites identified for rezoning for residential use are at Hackham (2000 homes in a parcel bounded by Main South, Patapinda and Piggott Range roads), Sellicks Beach (1700 homes west of Main South Road), Dry Creek (10,000 homes bounded by the Salisbury Highway and the North-South Motorway) and Concordia (10,000 homes on Gawler’s northeastern fringe, north of the Barossa Highway).

How much land is involved?

The approximate area for each site is 135ha at Sellicks, 235ha at Hackham, 830ha at Dry Creek and 950ha at Concordia.

Why were these sites chosen?

While complex, these sites address South Australia’s need for housing and land supply. They are Greenfield lands within the Adelaide metropolitan area, do not encroach on environment and food protection areas, and continue the growth of the state’s capital city in a structured way. The state’s next 30-Year Plan will plot the next phase of South Australia’s development with work on future growth fronts as the population grows.

So, is there the possibility for similar releases in future?

Yes. The State Planning Commission has initiated creation of the Greater Adelaide Regional Plan, which will replace the existing 30‑Year Plan for Greater Adelaide. The new plan will ensure there is enough appropriately zoned land available to support population and employment growth throughout South Australia. This will ensure the state maintains a 15-year rolling supply of zoned residential land. The commission will be releasing a discussion paper in May to assist in the preparation of the new plan.

Why do we need more homes?

With the state’s population growing more strongly in recent years, there has been increasing demand for housing across all sectors in both metropolitan Adelaide and regional centres. Residential vacancy rates remain at historically low levels, with the supply shortage sparking substantial rent increases. And with the expected growth in key industries – such as defence, space, cyber and decarbonisation – more homes will be necessary.

How will the new land releases ease that situation?

Aside from adding new homes into the market, at least 15 per cent of the properties have been earmarked for affordable housing. Increasing residential land supply in the right places – at the right time – will support the property market and create more diverse and affordable housing to meet community needs.

When will work start?

Infrastructure planning for Concordia, Sellicks and Dry Creek will start this year. Hackham was rezoned in January. It is anticipated construction on the first homes could begin next year. Before development can occur, more detailed infrastructure planning will occur in consultation with landowners, the council and infrastructure and utility providers to ensure the new community is well serviced with appropriate infrastructure.

What about infrastructure?

The government is establishing an Infrastructure Planning and Development Unit to help drive residential developments and co-ordinate infrastructure investment. Expected to be staffed by five full-time equivalents, it will be charged with co-ordinating the rollout of utilities such as electricity, water and sewerage and public infrastructure such as roads and schools. This will involve the striking of deeds – or agreements with developers – for infrastructure and community facilities before the land is rezoned for housing. The unit will work across government, with utility providers, landowners and other key stakeholders to determine the major infrastructure requirements and ensure appropriate agreements are in place to deliver the required infrastructure, including who pays for the infrastructure.

Who will be the developers?

For Renewal SA-owned land in parts of Dry Creek and Hackham, the land can be sold or developed in partnership following an open market expression of interest process ensuring key development objectives are met. Private landowners can develop their land or partner with a developer of their choice. Private landowners can also simply sell their land via a normal market process.

Sites for sore eyes

Seaside destination Sellicks Beach is just 50km from Adelaide. Picture: Tom Huntley

Hackham

Once the heart of a rich agricultural district – about 25km from the city centre, in the City of Onkaparinga – Hackham is a popular location for young families. Nearby schools include Huntfield Heights Primary, Hackham West R-7 School and Hackham East Primary. An easy train ride from Noarlunga Centre to the city, there are also plenty of nearby shopping and medical options. Hackham is close to the Onkaparinga River recreation and national parks, while there are plenty of aquatic adventures to be enjoyed at Port Noarlunga and Christies Beach. The many attractions of the Southern Vales are also on your doorstep.

Dry Creek

Situated within the Salisbury Council district, Dry Creek is only about 12km from the centre of metropolitan Adelaide, with the train service from the Dry Creek Railway station, on the Gawler line, ensuring an easy commute. Motorists are also well catered for, with the Port River Expressway and North-South Motorway easily accessed. Neighbouring Mawson Lakes, Cavan and Gillman, Dry Creek is home to extensive wetlands, which form part of the Gulf St Vincent Important Bird Area. Nearby education options include St Paul Lutheran School, Alberton and Largs Bay primary schools and Ocean View College.

Concordia

For a slice of the rural life, Concordia – located about 5km from Gawler at the western end of the Barossa Valley – might tick the right boxes. Named after the Roman Goddess of Peace and Harmony, Concordia is located about 40km north of the city centre. The regular rail service and North-South Motorway make transport easy. With the many amenities of Gawler within easy reach – and the best of the Barossa just a short drive away – Concordia offers an ideal opportunity for families to establish themselves in their own piece of paradise.

Sellicks Beach

Likewise on the southern fringes of town, Sellicks Beach offers a chance to soak up a seachange – with the attractions of the Southern Vales at your back door. About 50km from the city heart in the City of Onkaparinga, south of Aldinga, Sellicks Beach offers the potential for a lifestyle change with the lot. Local schools include the Southern Vales Christian College, Willunga High and Aldinga Beach B-7 School, while the nearby centres of Aldinga, McLaren Vale and Willunga all offer plenty of shopping options. The popular beach is one of the few stretches of coastline in the state where parking is allowed on the sand.

New bid to ease rental crisis

Toby Paltridge and Ariba Siddiqi with their new baby. Picture: Russell Millard

New reforms to the Residential Tenancies Act set out in the State Government’s housing policy will start to address the rental crisis that has been tightening its grip on South Australians over recent months.

One of the key reforms is to ban rental bidding, where prospective tenants are encouraged to offer above the advertised rent in order to secure the property. Landlords will be prohibited from advertising rent ranges for properties, hold rent auctions or solicit offers over the stated rental price.

“Rent bidding encourages people to pay more than they can realistically afford, leading to inflated rents and increased rent arrears,” says Paul Edwards, legislation and industry adviser at the Real Estate Institute of South Australia. “There was a need for reform.”

Ariba Siddiqi was an integral part of that reform. The electronics engineer moved from Melbourne in 2021 to take up a new job opportunity in Adelaide. Struggling to find an affordable rental, she and her husband Toby Paltridge were forced to spend more than $10,000 on Airbnb accommodation in the three months it took them to secure a property.

“We looked at 20-30 houses and applied for at least 10 but I’d say we lost out on almost all of them due to rental bidding,” Paltridge says.

Last year, Siddiqi reached out to MP Lucy Hood to raise the issue of banning rental bidding. “I was so scarred by the process of looking for a place, I couldn’t bear the thought of going through that again,” she says.

Her pleas were heard and Siddiqi’s concerns were incorporated into the Residential Tenancies Act reform. “It was the first time I’ve reached out to a local member who has then taken positive action,” she says. “I was very impressed.”

A change to the amount of residential bonds tenants pay is also expected to facilitate getting more South Australians into rental properties. Landlords can currently claim a maximum six weeks’ rent when the weekly rent is $250 or greater; the new reform will raise that threshold to $800 per week or greater.

“It’s going to make a huge difference for tenants,” Edwards says. “They normally have to pay the bond within 48 hours of their application being approved, but they haven’t left their previous property and are not getting their bond back from that until they’ve been in their new property for about two weeks.

“The new policy isn’t going to stop that but the cost will go down because the vast majority of properties are below $800, so tenants will only have to cough up four weeks’ bond.”

Other changes applied under the residential tenancies reform include steps towards standardising rental application forms and protecting tenant information.