The Albanese and Malinauskas governments have announced an $801.5 million package to unlock about 17,000 new homes in South Australia – roughly 7,000 of which are reserved for first-home buyers. The funding is aimed at upgrading “last-mile” infrastructure (roads, water, sewerage, power) so that new estates can be fast-tracked. In practice, this means developments in Adelaide’s growth corridors and urban renewal zones will be shovel-ready much sooner. Construction is slated to begin in 2026/27, with first buyers moving in around 2027/28. In short, this is a long-term supply boost – but the extra homes will arrive in stages over the next few years, not all at once.
Key funding breakdown:
- $300m concessional loan for water infrastructure in Adelaide’s northern suburbs – unlocking about 4,000 homes.
- $50m concessional loan for civil works to build 400 first-home-only homes at Playford Alive (an urban renewal precinct).
- $184m concessional loan to deliver 1,700+ homes in various metropolitan renewal projects.
- $133.6m grant (matched by SA) to deliver 750 first-home dwellings through other programs.
This investment addresses a key bottleneck. As the Housing Industry Association notes, builders often say that securing infrastructure is what “holds many projects back”. By funding roads, water and sewerage up front, the deal should make lenders more confident in these projects and help maintain valuations. However, it also means buyers need to be prepared. First-home buyers should expect increased competition when these new homes come online – especially if prices sit near the Home Guarantee Scheme caps.
What homebuyers and investors should do now
For borrowers, the message is: be ready. Here are our top tips for navigating this new wave of supply:
- Know your borrowing power. Check your budget early and get a home loan pre-approval so you know exactly what you can afford. A pre-approval gives you a clear price range and shows sellers you’re serious, which is a big advantage when new homes launch.
- Plan loan structures for new builds or off-the-plan homes. If you’re buying a new-build or off-the-plan property, consider a construction loan or tailored mortgage. OM Financials can advise on construction loans (with progressive drawdowns) or regular home loans, and help structure financing to fit your project.
- Leverage first-home buyer incentives. Many of the new homes will be aimed at first-home buyers. We can help you understand the eligibility rules, deposit and LVR strategies, and government schemes (like the 5% deposit guarantee). Our first home loans service specialises in guiding buyers through these incentives.
- Act before prices rise. Buy now and save! Housing projects are released over time. If you wait to buy until the estate is fully completed, you’ll be paying a much higher price. Getting your finances sorted out now means you will have a lower purchase price and avoid getting caught in a bidding war. Once lots are released, there may be a huge increase in demand, so having your ducks in a row ahead of time is very important.
- Think like a property investor. If you are planning to invest, getting in on these new projects early will give you a better deal before the market has time to incorporate all the new supply. Ask us about investment loans and portfolio strategies to help you take full advantage of this amazing opportunity.
At OM Financials, we make the home loan process simple and guide you every step of the way. Our brokers can help you explore deposit and LVR strategies so you can move forward confidently. Speak with us today to understand your new borrowing power and options. Feel free to book a free consultation or contact us anytime at 61 478 876 967 to discuss your home loan needs in this changing market. And, follow us on LinkedIn and Instagram as well.