Liberals vow to stop Renewal SA outbidding private developers, which they say ‘pushes up price’ of land

Government agencies would be banned from its practice of nabbing prime development land under the Liberals, who say it means higher prices.

Hon. Michelle Lensink MLC at a retirement home in Ridgehaven, talking to the media about electricity prices. Picture: Matt Loxton

Allowing government agencies to out-bid private developers for land pushes up prices, the Liberals say, as it vows to ban the practice.

Opposition housing spokeswoman Michelle Lensink said a Liberal government would curb what she called Renewal SA’s stifling of the private building sector through competitive bids for development-ready land.

It comes after The Advertiser published a breakdown detailing the 64,474 potential homes announced by the government since March 2022, including their locations and expected completion dates.

She said Labor “has been talking the talk without walking the walk” despite its steady stream of housing development announcements, as she promised her party would commit to not allowing Renewal SA to “push up land prices” by outbidding other developers.

“Something like 95 per cent or more of houses are built in the private sector, so anything that discourages particularly local builders from participating in the South Australian market is detrimental,” Ms Lensink said.

Artist impression of part of the proposed $1bn, 1000-home neighbourhood development on the old West End brewery site at Thebarton. Picture: Supplied

Renewal SA’s bid to acquire the West End Brewery site at Thebarton in 2023 sparked backlash from developers, who argued the agency should not use taxpayer money to compete with the open market.

Similar criticism followed Renewal SA’s purchase of the former Kaufland sites at Forestville and Prospect in 2020, under the Marshall Liberal government.

In a statemement, Planning Minister Nick Champion said Renewal SA “is looking forward to partnering with the development sector to bring to market exciting but complex urban renewal projects, which the development sector could not have done alone due to infrastructure constraints”.

He said those constraints included significant water and sewer installation at the former West End Brewery site.

Ms Lensink also took aim at the Housing Roadmap published last year, which outlined the government’s plan to alleviate the housing crisis, including a timeline for its housing developments, an initiative adding more places to building and infrastructure courses, and policies to relieve pressure on renters.

“(Labor) has made grand announcements about land releases, a Housing Roadmap and a review into the public housing maintenance contracts, all so far without producing results,” Ms Lensink said.

Housing and Urban Development Minister Nick Champion. Picture: NewsWire / Roy VanDerVegt

She promised a Liberal government would regularly publish a “Housing Roadmap report card” to track its progress against the plan.

She said the state government has not set a target number of houses to build under the Albanese Government’s Housing Accord, and the “report card” would report the number of houses built a year in South Australia.

A Liberal government would also develop a plan for the volume of construction materials, which need to be produced in South Australia.

Mr Champion said major milestones are being met, and an oversight committee with members from each industry body meets monthly and is updated on Housing Roadmap milestones.

“(The) construction industry and development sector … ensure the government is held to account,” he said.

“Actions speak louder than words, as we start to see houses being constructed and pipes going into the ground.”