Friday 27 July 2007
Devine Communities, one of Australia's most active developers,
has praised the South Australian Government's decision to free-up
2,000 hectares of land in Adelaide.
The announcement by Premier Mike Rann and Urban Development
Minister Paul Holloway breaks an artificially-created land barrier
imposed by the previous government.
"It is a vital step in ensuring new housing in Adelaide will
return to more affordable levels," said Mr Paul Nash, Devine's
National Manager of Housing-and-Land.
"Adelaide has the greatest level of Government-controlled land
of any Australian city, and with a stuttering release program to
the market over recent years it has created acute land shortages
for home buyers. This low level of available home sites in the
market has flowed on to inflate prices sharply in Adelaide."
While welcoming the increase in the urban growth boundary, Mr
Nash said the government still held vast amounts of undeveloped
residential land within the old boundary. "This is land zoned for
housing that should be released to the public promptly," he said.
"Restricting supply creates inflationary pressures on land prices
and pushes home ownership that little bit further out of the reach
of Adelaide residents."
Research from The Housing Industry of South Australia supports
Mr Nash's calls. It reports that Adelaide's land prices have risen
107.3% since 2001 compared to the modest increase in building
prices of 13.35%*. The HIA largely blames this land price
escalation on the Government's urban growth boundary, and the
restrictive land release policy under the management of its Land
Management Corporation (LMC).
Mr Nash also questions the government's claim that the extra
2,000 hectares will meet housing needs "for the next 15 to 20
years".
"Our estimate is that this new land will still be held up in
planning for a few years before home buyers can purchase a block,
and when it is available the pent-up demand for housing in Adelaide
may significantly reduce the 15-to-20 year supply expectations
forecast by the government," Mr Nash said.
"Without land, Adelaide's long-held housing affordability
advantage over other mainland States has been eroding, which has
correspondingly slowed building activity. If it had been left
uncorrected it would likely have impacted adversely on the State's
immigration and population growth targets.
"Devine appreciates the complexities and difficulties involved
for the Government in balancing the need for land supply and
providing appropriate infrastructure and amenities. This current
review of the growth boundary and announcement by the Premier and
Minister is applauded by Devine as a significant course of action
to keep housing within the reach of home buyers," Mr Nash said.
* HIA, February, 2007
**
Released by: Devine South Australia, Ground floor, 212 Pirie
Street, Adelaide 5001
Contact: Steve Weightman, SA State Manager, (08) 8306 5678, 0411
866 443
Paul Nash, National GM Housing & Land, on 0439 730 424
Prepared by: Barry Hyland of PR Plus, Level 1, 272 Pacific Hwy,
Crows Nest 2065 on
Ph: (02) 9439 9191, Fax: (02) 9439 9190. pluspr@ozemail.com.au