Property Council SA chief Daniel Gannon urges accelerated land release to ease housing crisis

There’s no overnight fix for SA’s housing crisis, the industry says, but there are two key ways to start – and one is increasing the supply of land.

A perfect storm of rising prices coupled with worker and material shortages is battering the property sector, an industry chief says, urging accelerated land supply release and home approvals to ease the housing crisis.

Ahead of The Advertiser’s Housing Forum, Property Council state chief Daniel Gannon urged measures to “shift the dial on development” and accelerate supply and housing diversity.

But Mr Gannon, whose group is a co-presenter of The Advertiser’s Forum, condemned interventionist policy, including rental caps or punitive taxes, warning these would squash risk-taking developers and investors.

Solutions to a crisis in housing affordability and supply will be discussed at an Advertiser forum on Wednesday, with panellists including Treasurer Stephen Mullighan, Housing Minister Nick Champion, PropTrack (REA Group) senior economist Eleanor Creagh, Mr Gannon, and Housing Choices Australia managing director Michael Lennon.

Mr Gannon called for an urgent priority to be given to existing housing projects in the pipeline, along with land parcels requiring rezoning or approval, to build homes on vacant blocks and put families into accommodation.

“Right now, there is a perfect storm of inflation, skills shortages and supply chain constraints impacting our economy with broad housing consequences,” Mr Gannon said.

“Land supply and approvals are two areas where there is leverage and opportunity, albeit not an overnight fix.

“We know what won’t work – interventionist policymaking like rental caps or punitive taxes on property owners and investors who take great risks to purchase, own and develop land for homeowners.”

Michael Lennon from Housing Choices and Premier Peter Malinauskas at affordable and sustainable housing development Nightingale Bowden apartments. Picture: NCA NewsWire / Naomi Jellicoe

Mr Gannon also said policymakers shouldn’t be afraid of growing the city skyline with residential apartments.

“A vibrant CBD needs to be underpinned by a residential population which will also inject life into small businesses and make use of existing infrastructure,” he said.

Fellow panellist Ms Creagh agreed that reforming state and local government planning systems to increase the supply of homes would improve affordability and help alleviate the housing crisis.

She said encouraging more people into home ownership and increasing accessibility would help ease pressure on rental markets, along with building more of the right homes in places where people want to live.

In terms of rental availability, Ms Creagh said the “build-to-rent” model was one option that could increase supply in the long term.

“Usually when a development is built the developer builds and sells the properties upon completion of the project,” she said.

“When you’re looking at the build to rent model, the developer maintains ownership for the purpose of renting it out.”

Karen Pitman inside her Grace Apartments at Glenside. Picture Mark Brake

Mr Champion said South Australia, along with the rest of the country, was “wrestling with a skills and supply shortage across the construction industry”.

“As a state government we are acutely aware of these pressing issues and have already placed wheels in motion to upskill our workers and ease supply chain pressures,” he said.

“We plan to build 400 additional public houses, are upgrading 350 public houses to make them liveable, and will continue to work with developers to increase housing stock in South Australia.”

After her children grew up and moved out, Karen Pitman downsized into an apartment at Glenside about 12 months ago. Ms Pitman said apartment living had brought lifestyle benefits, and urged others to consider such a move.

“I wanted something in a nice area with a good property value, and something easy to look after. I travel a lot for work,” she said.

“It depends on the individual, but the location is great and quality is brilliant. It’s right for me.”

Housing stock in Noarlunga Downs. Picture: NCA NewsWire / Brenton Edwards

Originally published as Property Council SA chief Daniel Gannon urges accelerated land release to ease housing crisis