The National Government’s Promise to Support Homes for First Home Buyers Begins in South Australia
About 7000 new homes will be built for first home buyers in South Australia alone under a federal deal.
The federal and South Australian governments have signed a new deal to deliver almost 7000 new homes for first-time buyers and close to 17,000 homes in total in the state.
The $801.5 million deal is the first under the Albanian government’s commitment to spend $10 billion to build 100,000 new homes for first-time buyers, following his 2025 election victory.
South Australia leads the way in federal first-time home buyer mortgage issuance. Photo: Getty
With the funding, 6877 homes will be built exclusively for first home buyers, while approximately 10,000 homes will be built for other buyers across South Australia.
Under the agreement, the federal government will provide:
- a $300 million loan to bring water infrastructure to northern areas, directly opening 4000 homes.
- a $50 million, three-year public works loan for a first-time buyer-only property for 400 homes in the Playford Alive revitalization development.
- $184 million loan to deliver over 1700 homes across Adelaide regeneration projects
- a further $133.6 million in funding, matched by the South Australian government, to deliver 750 homes to first home buyers through other schemes.
According to the federal government, housing construction will be accelerated, with work expected to begin in 2026-27 and first home buyers to move in from 2027-28.
Housing Minister Clare O’Neil said the deal would benefit first home buyers and housing supply across the province.
“We are putting first home buyers at the heart of our home building program, ensuring that when we build more homes – first home buyers benefit,” said Ms O’Neil.
“We said we would make it easier for first-time buyers to get into homeownership and that’s exactly what this contract does.”
Building delivery is focused
The announcement follows the latest construction activity figures, which showed that almost 50,000 residential houses started to be built in the September 2025 quarter, and 218,974 new houses were completed across the country in the first 15 months of the National Housing Agreement.
This means that while Australia has not yet reached its target of 60,000 new homes per quarter, construction rates are increasing.
Industry bodies have identified infrastructure investment as key to accelerating housing delivery.
Other states have also started prioritizing infrastructure, including Queensland through the Residential Activation Fund, which gave its first funding to infrastructure proposals linked to shovel-friendly housing projects.
The managing director of the Housing Industry Association, Jocelyn Martin, said the agreement between the governments of South Australia and Australia focused on the implementation of essential infrastructure, including roads, sewerage, water and power.
“This investment is essential to build more homes quickly, as builders often tell us that getting this key ‘last mile’ infrastructure is what prevents many projects from being delivered on time,” he said.
The Property Council of Australia said the next test would be a delivery discipline.
“Industries across the country will be watching this closely. Success depends on how well they open up used land, remove problems, and bring in new buildings,” said Property Council CEO Mike Zorbas.
“Demand side support can help, but only if balanced with strong supply side measures and a laser focus on infrastructure issues.
“When governments pull the necessary tools, they must continue to deliver on the move quickly. That means planning settings that reward delivery, infrastructure that transforms fragmented land into development-ready land, and productivity changes that move approvals to completion.”
Are you interested in the latest in shopping and innovation? Check out our New Homes section.
