SA MARKET OVERVIEW
CONTINUED
investment in infrastructure are essential for South Australia’s sustainable development across asset classes. 1. Fast-Tracked Approvals: • The South Australian government has implemented measures to expedite new home construction in key growth areas. • Compliant builds that meet basic requirements can bypass the traditional planning consent process through councils, reducing red tape. • New homes in master-planned communities progress directly to building assessment, streamlining the approval process. These changes aim to help South Australians own their homes sooner. 2. Infrastructure Prioritization: • The Regional Development South Australia (RDSA) has identified priority infrastructure projects across the state. • These projects address challenges and opportunities in the regions. • A holistic approach considers individual projects alongside broader needs. Infrastructure investment is crucial for sustainable growth and job creation. 3. Feasibility Challenges: • While green-field sites offer potential, feasibility challenges persist. • Factors such as interest rate fluctuations, building costs, and labor constraints impact project viability. • Developers must carefully assess risks and costs before proceeding with residential developments. Other Asset Classes: 1. Industrial Infrastructure: • South Australia’s industrial sector remains robust. • Projects like the Amadeus Basin to Moomba Natural Gas Pipeline contribute to economic growth. • Industrial spaces are essential for manufacturing, logistics, and renewable energy sectors. 2. Renewable Energy: • South Australia has excelled in renewable energy so far. • The state aims to generate 500% of its energy needs from renewable sources by 2050. • Investments in wind, solar, and battery storage projects continue to drive growth.
Affordable Housing Projects: The South Australian government, in collaboration with the Federal Government, is committed to a pipeline of affordable housing projects. Here are some key initiatives: 1. Bowden (Third St): • 60 new affordable rental apartments. • Building construction targeted to start by mid-2024, allowing residents to move in by mid-2025. 2. Prospect (Churchill / Regency Rd): • Two separate and well-located buildings, offering 72 new affordable rentals. • Building construction targeted to start by the end of 2024, with residents moving in by the end of 2025. These and other projects aim to increase affordable housing for young families, single parents, older women, retirees, and essential workers. They contribute toward $965 million in additional housing construction activity across South Australia. The South Australian Government announced a record land release aimed at addressing housing needs and making homes more accessible and affordable for South Australians. Key summary details: • The government plans to release at least 23,700 more homes through this initiative. • The proposed rezoning of three additional development sites will play a crucial role: Dry Creek: Approximately 10,000 homes. Concordia: Another 10,000 homes. Sellicks Beach: Approximately 1,700 homes. • Master planning for these sites will commence this year, with construction on the first homes expected to begin next year. • At least 15% of these homes will be earmarked for affordable housing. • The additional supply is anticipated to accommodate more than 50,000 people. From a house and land/residential community perspective, are regional green-field sites likely to surge in 2024 or will the associated feasibility challenges remain in play in 2024? And does this extend to other asset classes? While green-field sites hold promise, feasibility challenges persist. Strategic planning, streamlined approvals, and
90 – April / May 2024
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