The state and federal governments are indirectly influencing the housing shortage in Naracoorte and surrounding townships, claims a local real estate agent.

Cameron Grundy of SAL Real Estate says for decades, the state government has retreated from the traditional housing trust model of building and selling properties, which has contributed to the housing crisis of today.

Mr Grundy said that with the introduction of 250,000 migrants per year by the Commonwealth Government, the regional housing crisis would get worse.

“One of the key issues in Naracoorte for many people in the community, including pensioners, workers, and migrants, is the lack of rental homes, particularly at the entry level. This is an issue for executive style housing, too,” he said.

“There is also a shortage of entry-level homes that can be purchased, again for people from all walks of life.”

Mr Grundy said while there are blocks of land available in Naracoorte for building, there is a lack of appetite to build on many of those blocks for several reasons, including size, location, and topography.

“More subdivisions should be considered, including those that would cater to the elderly and their care.

“While local government can assist with in-kind support and advocacy, it is very limited in how much it can influence many of the considerations required with housing developments.”

He said the recent removal of council rights in South Australia, which influenced most of their respective development plans, by the state government was not helpful at all.

“The business case for developers in rural centres to buy land, subdivide the land, and provide the roads, services, and general infrastructure is marginal at best.

“To assist with the lack of land availability for new housing, the Federal Government, which controls immigration levels, could consider providing additional incentives by way of tax incentives or financial assistance.”

He said the demand for the purchase of housing in Naracoorte and surrounding townships peaked in late 2022.

“Increased interest rates and a reduction in borrowing capacity have contributed to a contraction in the strong demand witnessed throughout 2022.

“Demand from prospective housing tenants for rental accommodation remains very strong from all sectors.

“A new group of tenants has come about due to landlords either selling to owner-occupants in order to capture the strong prices or moving into the respective property themselves.”

He also highlighted that the new 43 single-storey cabin worker accommodation endorsed by the Naracoorte–Limestone Coast Regional Assessment Panel (NLCRAP) on the Old Caves Road was unlikely to affect the broader housing market but may impact the housing market in the immediate neighbourhood.

“The development will likely appeal to workers who are new to our area. This facility should enable new workers to establish themselves in our town and district. Many may proceed to rent or buy more substantial properties in Naracoorte and surrounding towns.”

South Australia’s Premier, Peter Malinauskas, says that with the state’s population continuing to grow, the government must make long-term decisions.

“One important way the State Government can help more South Australians enter the housing market is by promoting the release of more land for residential development,” Mr Malinauskas said.

“This residential land release will ensure there is more supply to meet the needs of our growing population. Now and into the future, we are talking about housing the equivalent of a packed Adelaide Oval.”

He said everyone should have a safe and affordable place to call home.

Naracoorte key facts:

• Median house prices increased in the last two years.
• The starting price for a basic, average, three-bedroom family home is $300,000.
• The median sale price of houses over the last year stood at $317,500.
• House sales recorded a compound growth rate of 29.6% in the last five years.
• In the past month, 582 buyers registered interest in buying a house.
• Last month, four properties were available for rent and 41 for sale.
• The weekly rental for a three-bedroom house stands at $300.

This article appeared in the Naracoorte Community News.