Run-down units on Greenhill Rd at Eastwood to be replaced with new rental towers

An ugly stretch of run-down units on Greenhill Rd opposite the parklands will be replaced with 140 new homes as part of a multimillion-dollar project – but there’s a catch.

A block of 29 run-down houses south of the city centre will be demolished and replaced with 140 new specially designated properties as part of a multimillion-dollar initiative.

There’s just one catch – all the new apartments to be built next to the Air Apartments on the Greenhill Rd, Eastwood site, will be rentals only.

The state government announced on Saturday that the development of the new one, two and three-bedroom homes would help ease pressure on an overwhelmed rental housing market.

The Build to Rent project is part of a $550m decade-long housing strategy being driven by the government as a solution to a rising rental crisis.

Human Services Minister Michelle Lensink said the rental market across the nation had been drying up, especially during Covid-19.

The run-down Eastwood site is set to be demolished and rebuilt. Picture: 7NEWS

The smart new units proposed for the Eastwood site. Picture: 7NEWS

“Everyone deserves a place to call home,” she said.

“South Australians eligible for affordable rental are charged 75 per cent of market rent, leaving more money in their pockets for cost of living expenses and savings.

“This project alone will inject up to $61 million during construction into our economy, supporting hundreds of jobs and providing a major boost for our building and construction industry.”

The state government is contributing $9m worth of land in Eastwood as well as a $1m grant to the developer who wins the project.

A community housing project provider will be responsible for building the homes and maintaining them for 49 years, at the end of which the properties revert to government ownership.

The project is expected to be finished in 2023-4 and a government spokeswoman said the current residents of the houses had been supported to find new housing.

The new units will all be rentals. Picture: 7NEWS

More than a year ago, community groups warned of a wave of evictions contributing to the rental crisis, in part triggered by Covid-19 and a horror year of bushfires.

In September this year, The Advertiser revealed hundreds of properties initially part of the National Rental Affordability Scheme would increase their rent after leaving the program.

Social service organisations predicted the diminishing number of properties as the scheme began to wind down would put even more pressure on the rental sector.