The Malinauskas Government handed down its third State Budget last week delivering a surplus of $306 million in 2023/24, with headlines focusing on the state debt burden increasing $16.3bn within 4 years, and an additional $2.5bn in spending on health over the next five years.
The Budget outlined investment in housing, highlighted by a $576 million allocation for 2,000 homes in Seaton and Noarlunga, encompassing both social and affordable housing.
An additional $135.8 million over five years, funded through the Commonwealth Government’s Social Housing Accelerator Payment, aiming to further bolster social housing.
To expedite housing development, $67 million from the Commonwealth Government is earmarked for enabling infrastructure and new social housing projects.
Northern suburbs will see $59 million in water and sewer upgrades, while regional housing receives a $30 million boost. In support of first-time home buyers, property value thresholds for stamp duty and the First Home Owners Grant are being abolished for those who build or purchase new homes, including off-the-plan properties, house and land packages, or vacant land.
Moreover, $5.8 million is dedicated to housing in Whyalla, specifically to accommodate the workforce for the Hydrogen Jobs Plan.
The Property Council has characterised the property sector as being “up one-nil at half time” in reaction to the Budget, in anticipation of the Malinauskas Government’s Housing Roadmap on June 25.
The property industry in South Australia, which directly accounts for almost 11 per cent of state economic activity, noted significant and welcome announcements on housing, economic and social infrastructure and a continued commitment to no new taxes or tax increases.
South Australia’s Executive Director of the Property Council, Mr Bruce Djite, said that the budget has several positive measures for property ensuring a consistent pipeline of demand for the sector, however, more importantly has measures that address supply side constraints such as skills and training.
“The property sector includes investors, owners, developers, builders, and managers of real estate across all built form asset classes including commercial, office, residential, industrial, retirement communities, hotels, purpose-built student accommodation and more,” Mr. Djite said.
“Our industry continues to buoy state revenue with a rally in tax receipts from rising house prices swelling the state budget surplus by $150m over mid-year review projections.
“To deliver South Australia’s housing and infrastructure requirements the state must increase its productivity, remove planning constraints, attract and retain talent, whilst growing and maintaining our skills base and unlocking development opportunities by enabling private investment to do the heavy lifting.
“In light of the revelations today around the state’s debt trajectory to service major infrastructure projects, this reality is more important than ever.
“The government has flagged a reduction in the number of additional infrastructure announcements, and this goes to both the ability of the state to carry a greater debt load but also the challenges of sourcing skilled labour in an environment of heightened construction demand.
The Property Council, along with other industry bodies will host a Housing Roadmap event on June 25 where the Premier will make a series of announcements outlining how his government will comprehensively address the state’s housing supply crisis.