The Property Council of Australia has backed Planning Minister Nick Champion's call for housing development to continue in Adelaide's north, warning that a Playford Councillor's
motion to put the brakes on new homes in the middle of a housing crisis is not the answer.
But Property Council SA Executive Director Bruce Djite said the concerns emerging in Playford should also be a wake-up call for government. "We agree with the Minister. South
Australia cannot afford to stop building homes. But motions like this don't come out of thin air," Mr Djite said.
"Adelaide's north is carrying a significant share of South Australia's population growth, but the infrastructure, services and employment opportunities supporting that growth have
simply not kept pace."
With limited opportunities for large-scale greenfield growth in Adelaide's south, the northern suburbs and Mount Barker are carrying much of the task of accommodating South Australia's growing population. Pausing development would only exacerbate this significant challenge. "When people are already struggling to buy or rent a home, constraining supply is the last thing we should be doing," Mr Djite said.
"If we want more affordable homes and greater housing choice, we need to keep land, infrastructure and housing moving through the pipeline." However, the Property Council cautioned that having homes approved does not necessarily mean they will be built.
Higher construction costs, cost-of-living pressures and federal tax changes have weakened purchaser confidence, negatively impacting project feasibility, meaning certainty around approvals, infrastructure and government policy is more important than ever.
The Property Council said this should also be considered as the Government progresses proposed changes to sunset clauses for off-the-plan contracts. "We support consumer protections, but reform needs to be proportionate and carefully targeted. Changes which unintentionally make residential projects even harder to finance or increase uncertainty will work against the Government's own housing objectives."
"Councils, communities and industry need to know where growth is going, when land will be serviced and who is responsible for delivering the infrastructure that makes that growth possible," Mr Djite said.
"That transparency gives councils confidence, communities confidence and investors confidence. Time kills deals. In a housing crisis, uncertainty kills homes."
