Nearly 7000 new homes will be built exclusively for first-home buyers in South Australia under a federal-state agreement.
The federal and South Australian governments have signed a new deal to deliver nearly 7000 new homes for first-home buyers and close to 17,000 homes in total across the state.
The $801.5 million deal is the first under the Albanese government’s election commitment to spend $10 billion building 100,000 new homes for first-home buyers, following its 2025 election win.
South Australia leads the rollout of the federal first-home buyer housing pledge. Picture: Getty
Through the funding, 6877 homes will be built exclusively for first-home buyers, while approximately 10,000 additional homes will be constructed for other buyers across South Australia.
Under the deal, the federal government will provide:
- a $300 million concessional loan to deliver water infrastructure in the northern suburbs, directly unlocking 4000 homes
- a $50 million, three-year concessional loan for civil works for a new first-home buyer-only precinct of 400 homes in the Playford Alive renewal development
- a $184 million concessional loan to deliver more than 1700 homes across renewal projects in Adelaide
- an additional $133.6 million in grant funding, matched by the South Australian government, to deliver 750 homes for first-home buyers through other programs.
According to the federal government, construction on the homes will be fast-tracked, with work expected to commence in 2026–27 and first-home buyers moving in from 2027–28.
Federal housing minister Clare O’Neil said the deal would benefit both first-home buyers and housing supply across the state.
“We’re putting first home buyers at the heart of our home building program, making sure that when we build more homes – first home buyers benefit,” Ms O’Neil said.
“We said we’d make it easier for first homebuyers to get into homeownership and that’s exactly what this deal does.”
Building delivery in focus
The announcement follows recent building activity figures, which showed that nearly 50,000 dwellings commenced construction in the September 2025 quarter, while 218,974 new homes were completed nationwide in the first 15 months of the National Housing Accord.
This means while Australia is not yet meeting its target of 60,000 new homes per quarter, construction levels are rising.
Industry bodies have pointed to infrastructure investment as a key factor in fast-tracking housing delivery.
Other states have also begun prioritising infrastructure, including Queensland through its Residential Activation Fund, which dedicated its first funding round to infrastructure proposals linked to shovel-ready housing projects.
Housing Industry Association managing director Jocelyn Martin said the deal between the federal and South Australian governments focused on enabling essential infrastructure, including roads, sewerage, water and power.
“This investment is critical to build more homes faster, as builders often tell us that getting this key ‘last mile’ infrastructure is what holds many projects back from being delivered in a more timely fashion,” she said.
The Property Council of Australia said the next test would be delivery discipline.
“Industry around the country will be watching this closely. Success hinges on how well it unlocks serviced land, clears last-mile constraints, and brings forward new buildings,” Property Council chief executive Mike Zorbas said.
“Demand-side support can help, but only when it is balanced with strong supply-side measures and a laser focus on infrastructure bottlenecks.
“When governments pull demand levers, they must keep supply moving faster. That means planning settings that reward delivery, infrastructure that turns zoned land into development-ready land, and productivity reforms that quickly move approvals to completion.”
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