Developers sought for Port Pirie workers housing
The state government is seeking developers to build workers housing at Port Pirie, backed by $1 million in funding.
Renewal SA is seeking Expressions of Interest from property developers to build up to 10 rental homes in Port Pirie to house key workers in healthcare, law enforcement and education.
The state government is offering up to $1 million in capital and “guaranteed returns” as part of what the infrastructure agency is calling an “innovative housing investment opportunity”.
Developers will finance and build the homes according to parameters set by Renewal SA, and the homes will then be rented back to the state government with a minimum 10-year lease commitment, maintenance agreements and make-good provisions at the end of the lease.
The delivery model aims to build confidence in regional housing investment while offering stable returns for those partnering with the government, Renewal SA’s director of the Office for Regional Housing, Matt Hunt, said.
“Through the Regional Key Worker Housing Scheme pilot project, the state government financed and built key worker houses throughout the regions,” he said.
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“We are currently in the process of selling several of these dwellings to private investors, with ongoing government leasing arrangements secured.
“Through this EOI, we aim to stimulate developer-led direct private investment in key worker housing. We are encouraging the industry to take the first step by providing long-term leases backed by the state government.”
Renewal SA hopes the new homes will help alleviate housing supply problems at Port Pirie.
The city was selected as a trial site for the opportunity because of the area’s high demand for government workforce housing, strategic proximity to increasing mining activities in the state’s north, and established construction industry.
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South Australian Business Chamber research last year highlighted a lack of population growth at Port Pirie, paired with a need for housing and supporting infrastructure.
“The region is experiencing a significant housing shortage that the state government is seeking to address,” Hunt said.
“By offering additional investment to help with the cost of creating services allotments, we hope to encourage further development, compounding residential housing growth within the town.”
Renewal SA said investment contributions would be capped at $50,000 per additional allotment, offering up to a maximum of $1 million in total for internal road, footpath, landscaping, water, power and/or stormwater infrastructure.
“We know one of the biggest costs of development in the regions is getting land ready to build on, which can be a significant deterrent for projects or investments to get off the ground,” Hunt said.
“We’re working to reduce that upfront cost to ensure land development can get underway.”
Renewal SA’s Regional Key Worker Housing Scheme has already seen the construction of houses which are now occupied by key workers in Port Augusta, Mount Gambier and Renmark.
Another 17 houses are expected to be completed in Kadina, Moonta Bay, Ceduna and Mount Gambier by September this year.
