Nearly 7000 new homes will be built exclusively for first home buyers in South Australia under a federal-state deal.
The federal and South Australian governments have signed a new deal to deliver almost 7,000 new homes for first home buyers, and a total of almost 17,000 homes across the state.
The $801.5 million deal is the first under the Albanian government’s election pledge to spend $10 billion on building 100,000 new homes for first-home buyers following the 2025 election victory.
The funding will see 6877 homes built exclusively for first home buyers, while approximately 10,000 additional homes will be built for other buyers in South Australia.
Under the deal, the federal government will provide:
- a $300 million concessional loan to deliver water infrastructure in the northern suburbs, directly connecting 4,000 homes
- a three-year $50 million concessional loan for civil works for a new precinct of 400 homes, exclusively for first home buyers, in the Playford Alive regeneration development
- a $184 million concessional loan to deliver more than 1,700 homes for regeneration projects in Adelaide
- an additional $133.6 million in grant funding, matched by the South Australian Government, to deliver 750 homes to first home buyers through other programs.
According to the federal government, construction of the homes will be accelerated, with work expected to begin in 2026-2027 and first-home buyers moving in between 2027 and 2028.
Federal Housing Minister Clare O’Neil said the deal would benefit first home buyers as well as housing supply across the state.
“We are putting first home buyers at the heart of our home building program and ensuring that as we build more homes, first home buyers benefit,” Ms O’Neil said.
“We said we would make it easier for first home buyers to buy their own home, and that’s exactly what this deal does.”
Completion of buildings in focus
The announcement follows recent construction activity figures, which showed that almost 50,000 homes started construction in the September 2025 quarter, while 218,974 new homes were delivered nationwide in the first fifteen months of the National Housing Agreement.
This means that while Australia is not yet meeting its target of 60,000 new homes per quarter, construction levels are rising.
Industry bodies have pointed out that infrastructure investment is a key factor in the rapid delivery of homes.
Other states have also begun to prioritize infrastructure, including Queensland through the Residential Activation Fund, which dedicated its first round of funding to infrastructure proposals tied to ready-to-build housing projects.
Housing Industry Association managing director Jocelyn Martin said the deal between the federal and South Australian governments was aimed at enabling essential infrastructure including roads, sewerage, water and power.
“This investment is critical to building more homes faster, as builders often tell us that getting this important last mile infrastructure is holding many projects back from being delivered on time,” she said.
The Property Council of Australia said the next test would be supply discipline.
“The industry across the country will be watching this closely. Success will depend on how well it opens up serviced land, removes last-mile restrictions and brings new buildings forward,” said Mike Zorbas, CEO of the Property Council.
“Demand-side support can help, but only if it is balanced with strong supply-side measures and a sharp focus on infrastructure bottlenecks.
“As governments pull demand levers, they need to keep supply moving faster. That means planning environments that reward delivery, infrastructure that turns zoned land into development-ready land, and productivity reforms that move approvals to completion quickly.”
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