SA breaks home approvals record, but still short of target
South Australia has hit a record number of home approvals and completions two years after a national plan to boost Australia’s housing supply.
Latest Australian Bureau of Statistics data shows 29,380 new home builds were approved since state and federal governments took action on housing construction in mid-2024.
The National Housing Accord was launched to boost Australia’s housing and affordable housing supply by building 1.2 million homes across the country by 2029.
South Australia has agreed to build a target of 83,000 homes by the target date of mid-2029, with the state currently having a shortfall of 3990 houses to keep pace with the completion date.
Master Builders SA CEO Will Frogley said the home building sector has “never been busier in SA” than in the past two years.
“It’s fair to say that the target for South Australia was very ambitious,” Frogley told InDaily.
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“We basically had to build way more homes than we’ve ever built in our entire history. I think a record number of not only approvals, but also a record number of completions has taken a heck of a lot of hard work and is something that’s been badly needed.
“Whilst it’s been challenging out there, South Australia continues to punch above our weight on the national stage.”
The Master Builders SA CEO said most of the housing activity has occurred in Adelaide’s northern suburbs and areas with land and affordable housing opportunities.
“We’ll unlock the possibility for a lot more homes to be built out in the north, but I think also there’s a lot of opportunities around the CBD,” Frogley said.
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“We’ve seen the state government really shift focus in the last 12 months towards apartments, and in Adelaide we really have a very low percentage of high-rise residences compared with other cities around the country.
“As many options as possible in terms of increasing supply is good for the consumer and also will hopefully put downward pressure on housing prices, because housing affordability remains a very serious concern in South Australia.”
The City of Adelaide Council has also unveiled plans to increase its population to 50,000 people by 2036, which would see a growth in CBD housing developments.
Frogley said, “We still need to build more homes” across the state to get close to meeting the NHA’s 2029 target.
Currently, the National Housing Supply and Affordability Council has projected SA will complete its NHA target by September 2030, more than 12 months later than the target date.
Master Builders SA was advocating for an investment into a skilled construction workforce, with mature-aged apprentices, programs such as HiViZ Women in Construction to attract women in the sector, and a boost in skilled migrants.
The peak body also made recommendations to support residential development on existing shopping centre sites to mix medium-density housing with established retail hubs.
“There’s a lot of untapped potential around our shopping centres in suburban Adelaide at Tea Tree Plaza, Kurralta Park and Colonnades,” Frogley said.
“There’s definitely a lot of scope to add apartments to those building sites, and obviously they’ve already got water and established infrastructure there ready to go.
“What we need to do is try and build as many homes as we can and get as close to that target as possible, because the best way to improve housing affordability is to increase supply.”
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