Government Moves to Salvage Stalled Housing Project in Adelaide's North

Hundreds of homebuyers in Adelaide's north can breathe a sigh of relief as the state government moves to salvage a stalled housing project. The Eyre development near Penfield, which was announced in 2010, includes plans for 1,900 homes on a 120-hectare site.

Renewal SA, a SA government agency, had entered an agreement with developer AVJennings — now part of AVID Property Group — to build the homes. About 750 homes have been completed, along with sporting fields and a shopping centre. However, AVID has decided to 'conclude its activities' in the South Australian market, leaving the remainder of the project back in the hands of the SA government.

Acting Housing Minister Michael Brown said the state government would seek to partner with another developer to deliver the project, and that outstanding contracts would be honoured. 'There's a few hundred contracts,' he said. 'AVJennings are absolutely adamant that they will be delivered … so those who have signed deals with AVJennings need not be concerned.'

Mr Brown described AVID's move as 'a commercial decision'. In a statement, AVID said it had 'agreed to transition the developer role at the Eyre community' to Renewal SA. 'The decision … is a strategic business decision reflecting AVID's focus on the Australian eastern seaboard,' it said.

Renewal SA said the project would 'remain on track' and that the 'transition would not affect existing purchasers'. The agency added that AVID had committed to finishing 'outstanding work on current stages, including landscaping and delivery of a reserve, while also working with existing buyers to finalise upcoming settlements required design approvals and ensure that all commitments to existing buyers are maintained'.

Master Builders Association CEO Will Frogley expressed disappointment at AVID's decision, saying it was 'definitely disappointing' that the company had opted against further involvement in the project. 'The main thing that Master Builders would really like to see is stability in the market — there's a lot of turbulence at the moment,' he said.

Meanwhile, Prime Minister Anthony Albanese was in Adelaide on Tuesday morning for talks on the future of the Hampstead Barracks, which was identified as a possible future housing development site following the announcement of defence site sales earlier this year. The federal government said it was seeking to advance negotiations, 'with a view to divesting the site' to the state government. The site 'could support about 400 homes' including apartments and townhouses 'around a large public park'.