Accelerating apartment development at strategically located shopping centre sites across the state could create an additional 7,500 new dwellings, according to a Hudson Howells report commissioned earlier this year by Master Builders SA.
The independent research report, commissioned to examine how apartment development can be better facilitated at strategically located shopping centres, also revealed that if height overlays were tripled, apartment capacity could increase to more than 22,000 new dwellings.
Master Builders SA has called for establishment of a dedicated South Australian Government taskforce to accelerate the delivery of thousands of new apartments at shopping centres and transport hubs.
Will Frogley, Master Builders SA CEO, said the State needs 16,800 new dwellings approved each year to meet its share of the National Housing Accord target of 84,000 new homes by 2029.
“SA has a very low percentage of high rise compared with other states and increasing this will be crucial to boosting supply and improving affordability,” Mr Frogley said. “Last year, with 15,097 dwellings approved, we’re falling short of our target and need to take meaningful action to address barriers.
“Shopping centre sites, especially those located alongside transport hubs, represent ready-made opportunities for new housing.”
“The land is there, the infrastructure is in place, and industry is prepared to invest. What’s lacking is coordinated leadership.”
Industry leaders have backed both the policy direction and Master Builders SA’s call for a dedicated taskforce to accelerate delivery. Grant Kelley, Chairperson of the Holdfast Group, a leading South Australian fund manager, said the combination of demand-side incentives and coordinated planning reform would be critical to unlocking supply.
“We strongly support measures that make it easier for people to move through the housing system, particularly initiatives that encourage downsizing and reinvestment in new homes,” Mr Kelley said.
“But to fully realise these benefits, we also need a clear, coordinated approach to delivery.” The establishment of a dedicated taskforce is a practical and necessary step.
“Bringing government, industry and investors together will help remove bottlenecks, provide certainty, and fast-track projects in well-located areas like shopping centres and transport hubs.”
Shopping centre sites are particularly well suited to higher-density housing because they are located within established communities with existing infrastructure, services, and employment nearby. Many are co-located with, or adjacent to, major public transport corridors.
Many centres also have underutilised surface car parks that are becoming less efficient as travel behaviour changes and public transport connectivity improves. Repurposing these areas for residential development, while maintaining appropriate parking through integrated design, could significantly increase housing supply without further urban sprawl.
Despite these opportunities, progress has been slow and inconsistent, constrained by planning, regulatory, financial, and coordination challenges. The proposed taskforce would bring together state agencies, local government, industry, institutional investors, and planning authorities to identify barriers and accelerate solutions.
Its focus should include streamlining planning approvals, improving infrastructure coordination, standardising design and zoning frameworks, and facilitating partnerships between landowners and developers.
“A dedicated taskforce would help provide the coordination, policy certainty, and momentum needed to turn well-located housing opportunities into projects that can be delivered sooner,” said Mr Frogley. “Focusing on housing development around shopping centres and transport hubs would help increase supply, support affordability, and create better connected communities that make smarter use of existing infrastructure investment.”
Master Builders SA acknowledged the South Australian Government’s policy to support older South Australians to transition into new housing, including provisions allowing those aged 60 and over to sell an existing property and reinvest in a newly built home without having to pay stamp duty. The measure is expected to improve housing mobility by encouraging downsizing, freeing up larger established homes for families, and boosting demand for new construction.
“This is exactly the kind of targeted reform needed to get the housing system moving more efficiently,” Mr Frogley said. “It reduces the barriers older South Australians face in relocating, while creating opportunities for new housing supply and better utilisation of existing homes.”
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