KI housing squeeze as population tipped to hit almost 7000

Kangaroo Island has a lot of work ahead of it to make way for a growing problem in the region.

Nearly 40 new houses a year need to be built on Kangaroo Island in the next 30 years, to accommodate almost 7000 projected residents, according to a high-growth scenario.

The island’s population is expected to grow to 6,876 people by 2054 – an increase of 1,792 permanent residents - sparking the need for at least 38 new homes to be built every year.

There are currently about 28 new properties being built each year, including redeveloped properties that were affected by the 2019-2020 bushfires.

Kingscote, American River, Penneshaw, Emu Bay, and Parndana are among the identified areas to build the projected 0-15 year housing demand.

These areas currently have a 15-year supply of appropriately zoned land suitable for housing supply and affordability to accommodate permanent residents, short-term holiday rentals and temporary workers.

Draft Kangaroo Island Regional Plan released to accommodate project population growth by 2054. Picture: realestate.com.au.

In a bid to prepare for the population growth, the State Planning Commission released a draft 30-year road map under the Kangaroo Island Regional Plan (KIRP), showcased on a fully digitalised planning portal.

It addresses the main priorities for the region including: climate change mitigation, transport infrastructure, and appropriate land for future housing and employment.

State Trade and Investment Minister Nick Champion said “meeting housing demand” was crucial for the Island’s future.

“The Kangaroo Island Regional Plan aims to ensure there is an appropriate pipeline of land supply and housing diversity over the next 15 to 30 years to improve availability, accessibility, and affordability for the benefit of all Island communities,” he said.

“I look forward to hearing the communities’ views on the future growth areas identified in the draft KIRP.”

Nick Champion MP Minister for Trade and Investment speaks during a press conference at Bird In Hand winery Wednesday,March,13,2024.Picture Mark Brake

Draft Kangaroo Island Regional Plan released to accommodate project population growth by 2054. Picture: realestate.com.au.

Property developers for Kangaroo Island face several challenges including limited access to infrastructure, high cost of materials and transport, limited construction and developer availability, the small scale of developments and restricted access to finance.

It costs up to 30 per cent more to build houses on Kangaroo Island compared to metropolitan areas because of the added cost of accessing goods, services, transport and freight costs.

Coastal erosion, bushfire and flooding events pose as a high risk to property and life, particularly in the western parts of the island.

Primary producers will also face environmental challenges with forecasted temperatures expected to surge to one degree with nine per cent less annual rainfall.

The Penneshaw and Cape Jervis ports are being upgraded to service new ferry operations fit for the next century.

From 2025, the transport network will have enough capacity to move freight and passengers to and from the Island.

The draft KIRP is now open to community feedback for a 12-week consultation period.

Originally published as KI housing squeeze as population tipped to hit almost 7000