In a significant move to address housing affordability and development costs, South Australia has introduced two pivotal policy changes this week. The Liberal Party has unveiled a new finance and grants program for builders, while the Malinauskas Government has amended planning laws to facilitate more communal living spaces. These initiatives aim to provide developers with greater flexibility and reduce construction expenses.
The State Government’s announcement today highlighted changes to planning laws, allowing developers to replace private balconies with communal spaces. This shift, part of the Accommodation Diversity Code Amendment, targets apartment-style homes and retirement living across the state. However, City of Adelaide Lord Mayor Dr. Jane Lomax-Smith cautioned that “the devil is in the detail.”
Planning Law Amendments and Their Impact
Under the new amendments, developers can incorporate communal amenities such as rooftop gardens and barbecue areas instead of traditional balconies. The government noted that balconies necessitate waterproofing, which can add significant costs to each apartment. The changes also permit aged care retirement facilities and supported accommodation buildings to reach up to six stories, accommodating larger developments.
Furthermore, a new form of ‘co-living’ accommodation will be allowed, enabling developers to create shared facilities like common kitchens or bathrooms. Dr. Lomax-Smith expressed concerns during the consultation phase, particularly regarding bedroom dimensions, shared toilet facilities, and waste management. She emphasized the need to balance housing diversity with quality of life, advocating for more green spaces and city cooling initiatives.
“We will take a close look at how the changes impact city development and raise any concerns directly with the Minister,” Lomax-Smith stated.
Government and Opposition Perspectives
Planning Minister Nick Champion asserted that the new guidelines would encourage developers to offer better-designed and well-located shared facilities. He plans to consult with impacted councils to determine the best application of the new overlay. Champion emphasized that these reforms would provide South Australians with more diverse and affordable housing options.
“We are giving South Australians real choice and flexibility in how and where they want to live,” Champion said. “Our population is changing, and our housing options need to change with it.”
Meanwhile, the state Liberals have introduced a policy ahead of the March 2026 State Election. Opposition Leader Vincent Tarzia announced a $40 million Build Better Fund, promising low-interest finance and grants for builders investing in emerging technologies. This initiative aims to “supercharge modern methods of construction,” such as AI-supported equipment for modular home products.
“Housing affordability is spiraling out of control, and the dream of home ownership is fast slipping away,” Tarzia remarked. “Helping construction businesses to invest in equipment that makes building homes more efficient and affordable is a key part of solving this crisis.”
Broader Implications and Future Outlook
Opposition spokesperson for housing, Michelle Lensink, highlighted the policy’s potential to address workforce shortages in the construction industry. She noted that supporting the current workforce is crucial to meeting the future housing demands of South Australia.
The new pre-election policy adds to the Liberal Party’s growing list of promises, including eliminating stamp duty for first-home buyers on homes valued up to $1 million, unlocking land unsuitable for farming for development, and accelerating three-year building apprenticeships.
As South Australia navigates these transformative changes, the focus remains on balancing economic growth with sustainable development. The introduction of communal living spaces and innovative construction methods could set a precedent for other regions grappling with similar housing challenges. The coming months will reveal how these policies impact the housing market and whether they achieve the intended goals of affordability and diversity.
