2016 has been a big year in the development sector.  There has been:

  1. the review of the 30 Year Plan initially released in 2010;
  2. the passing of an entirely new legislative framework in the Planning, Development and Infrastructure Act 2016 (SA) (which saw the introduction of the new “urban growth boundary” and which all parties continue to wait for to receive more details of the budget and timing on the five (5) year implementation strategy); and
  3. the ongoing push for infill development along transport corridors.

The year has culminated in relevant government departments undertaking reviews of the planning and development legislation which has included the provision of a report on housing affordability in the SA market and whispering of the introduction of apartment design guidelines.

Affordable Housing Review

Any market participant can’t ignore that in the last 10 years the median house price for a detached dwelling in metropolitan Adelaide has increased from $280,000.00 in June 2006 to $450,000.00 in June this year.[1] Therefore, in an industry where market drive dictates not only the profitability of a dwelling, but the scope and design of dwellings within a project, and as “an affordable place to live” is one of the seven strategic proprieties in the South Australian Government’s policy framework, affordability is a matter which cannot be ignored or pushed to one side.

The Renewal SA – People Partnerships Progress, Affordable Housing Review provided findings that the 15% target of affordable dwellings was exceeded with the year providing 5,490 new and committed dwellings across South Australia to provide 17.2% of eligible dwellings.

While the report did provide for areas of improvement, namely that the 15% policy focused on income factors rather than ensuring a diversity in products in all areas, the findings did provide a number of recommendations to assist with and drive diverse affordability into the future.

Apartment Design Guidelines

With the Government looking at the need for increased density in development across the State, and the need for joint focus between Councils and the Government to provide consistency in planning approvals, the introduction of a policy for apartment design guidelines is not unexpected and could provide a valuable tool for participants provided it is framed with SA specific focus.

While consideration has been given to WA and Victoria guidelines, and with various industry bodies working to provide submissions regarding the appropriate framework, it is clear that the system or guidelines adopted need to still provide for the system to require review of the merits of individual applications.

Given that the implementation of any such system or guidelines would affect all, market participants should get in contact with their local industry bodies to ensure that their view is (or can be) incorporated into the submissions being presented.

Irrelevant of next steps and timing of the implementation of the changes arising from the Planning, Development and Infrastructure Act 2016 (SA), it is clear that 2017 will reflect that the Government’s focus on encouraging, promoting and assisting with greater density within the existing suburbs of metropolitan Adelaide as well as encouraging increased city living.

For more information, or if you want to be put in touch with an industry body, please contact us.

  1. South Australian Government Data Directory, Median house sales by quarter, sa.gov.au

This communication provides general information which is current as at the time of production. The information contained in this communication does not constitute advice and should not be relied upon as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Should you wish to discuss any matter raised in this article, or what it means for you, your business or your clients' businesses, please feel free to contact us.

For more information, please contact...

William Esau

View Profile →

Related Articles

View All News
June 19, 2024 Distraint for Rent – What Landlords Need to Know
Property
December 20, 2023 Residential Tenancies Act Amendments Navigating the Impact on Landlords
Property
December 16, 2020 Building and Construction Contracts: The Importance of Good Contract Administration
Corporate & Commercial Dispute Resolution & Insolvency Property
September 30, 2020 COVID-19: Retail and Commercial Leasing Emergency Relief Prescribed Period 2
Property
September 09, 2020 COVID-19: Retail and Commercial Leasing Emergency Relief Extension
Property
May 18, 2020 COVID-19 Regulations for Commercial Tenancies
Property
May 13, 2020 State Government Announces Changes Affecting Commercial Tenancies
Property
April 17, 2020 COVID-19: Mandatory Code for Commercial Tenancies
Property
March 30, 2020 Coronavirus: Commercial Landlords and Tenants
Property
November 07, 2018 Retirement Village Unit
Health & Aged Care Property
March 26, 2018 Tax Changes for Developers of New Residential Property
Conveyancing Property Tax
March 26, 2018 Attention Landlords, Leasing Agents and Tenants!
Property
March 26, 2018 Easements in Gross
Property
October 31, 2017 2017-18 State Budget Changes for Acquisitions of Property in South Australia
Conveyancing Property Tax
October 31, 2017 DW Fox Tucker & Cleartitle Conveyancing Join Forces
Conveyancing Property Firm News
June 22, 2017 Client Profile: Karidis Corporation
Corporate & Commercial Property Tax + 1
May 18, 2017 Foreign Resident CGT Withholding – Important Changes
Property Tax
December 16, 2016 Planning Update – Where is SA at?
Property
December 16, 2016 Electronic Conveyancing
Conveyancing Property
December 15, 2016 Foreign Resident CGT Withholding
Property Tax