New inner-south masterplan as builders warn of materials shortage

As homebuilders warn of looming construction materials shortages, the state government has progressed a new masterplan that will coordinate three neighbouring housing developments in the inner-southern suburbs.

Mar 26, 2026, updated Mar 26, 2026
Master Builders SA CEO Will Frogley. Photo: Supplied
Master Builders SA CEO Will Frogley. Photo: Supplied

The war in the Middle East is being “deeply felt” by the state’s building and construction industry, which is warning of looming shortages for staple building materials.

As the state government today announces a new masterplan for three inner-south housing developments to coordinate infrastructure, the CEO of Master Builders SA said the industry was facing a “crisis”.

The state’s petrochemical product supply chain is at risk, Will Frogley said, and rising fuel prices would “place more pressure on an industry already under stress”.

“This affects transport costs, and the cost and availability of a range of fundamental building projects, including PVC pipes for water and sewerage and electrical conduit, plastics, steel reinforcement, cement and concrete,” Frogley said.

He said pre-existing labour shortages, driven by large state government infrastructure projects like the Torrens to Darlington and the Women’s and Children’s Hospital, were being exacerbated by the Middle East war.

“The likely cost increases will impact all corners of the building and construction industry, but particularly smaller operators and housing, as many home builds are fixed price contracts,” he said.

Builders would pass rising costs onto homebuilders at the commencement of new jobs, he said.

“They’ll end up costing builders money.

“We encourage clients to be mindful of the pressure builders are under – it’s a tough time for everyone.

“Australia is already one of the most expensive places to build. We need to do all we can to stem the impact of rising costs and supply issues.”

Treasurer Tom Koutsantonis and Housing Minister Nick Champion were contacted for comment.

A state government spokesperson said: “The State Government continues to speak to the Commonwealth regularly about impacts of the Middle East conflict.

“While overall fuel supplies into Australia is a Commonwealth matter, we can confirm that supplies continue to reach South Australia as they normally do, and we are advised service stations are being resupplied,” he said.

“We understand that no jurisdiction is considering fuel rationing at this time.

“Any broader impact on supply chains is of course a concern and we will continue to monitor the situation closely and engage collaboratively with all impacted stakeholders.”

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Inner South Master Plan

The old Le Cornu site at Forestville will be transformed via a major development project. Photo: Renewal SA.

Meanwhile, the government today announced it had progressed a masterplan for a new inner-south neighbourhood, connecting three housing developments in Unley.

The ‘Inner South Masterplan’ will connect the Forestville development at the old Le Cornu site on Anzac Highway (being developed by Peet on Renewal SA land), the Keswick Barracks site (land acquired by the state government) and the Adelaide Showgrounds development on Rose Terrace (being undertaken by the Royal Agricultural & Horticultural Society of South Australia).

Via the State Government of South Australia.

The state government said the masterplan would “create a unified community around the Adelaide Showground”.

It has granted $500,000 from the Planning and Development Fund to support investigations and design work for the coordinated “transformation” of public transport, roads and community infrastructure plans.

The move was welcomed by Property Council of Australia SA executive director Bruce Djite, who said “maximising yield and ensuring once-in-a-generation sites like these are not wasted is critical to addressing the housing crisis”.

“The proximity to public transport, jobs, amenities and green space makes this location perfect for density. We encourage the government to move as quickly as possible, so industry can deliver this site for the benefit of future residents, businesses and the community.”

Champion said the masterplan was a rare opportunity.

“By connecting these ongoing developments, we are coordinating the best outcome for residents,” he said.

“This won’t be a piecemeal development — our plan will ensure infrastructure, open space, transport and housing are planned together from the start.”

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