The South Australian government has announced that, if re-elected in March next year, it will underwrite up to $500 million of apartment construction projects in what it calls the mid-tier of the market. The move is aimed at jumpstarting apartment projects in Adelaide’s CBD and easing the state’s ongoing housing shortage.

Like many parts of Australia, South Australia faces rising housing demand and soaring construction costs.

The state is also struggling with a shortage of new developments reaching the market.

By targeting apartments priced below $1 million, the policy aims to make city living more affordable for working professionals.

It also supports local builders, developers and suppliers.

The initiative is expected to lift construction in Adelaide’s CBD and improve access to affordable housing.

It may also help revitalise the city and draw in new residents.

So, how will the scheme work — and what has been the reaction so far?

What is the issue?

The move is designed to incentivise the construction of new apartment projects in Adelaide’s CBD. In the past decade, 2,400 apartments in the CBD have been approved for construction but never built.

Like other states, South Australia has a significant issue with access to an affordable supply of houses. Premier Peter Malinauskas says this is something he hopes that the new scheme will address.

“We have to unlock housing in our city that is affordable and accessible to working people,” he said at a press conference.

“Nurses at the RAH [Royal Adelaide Hospital] and the police officers in Hindley Street can’t aspire to luxury apartments in the East End that cost over $1 million a pop.”

The premier also highlighted the positive impact the proposal will have on the state’s construction industry.

“This election commitment will get more South Australians into homes and jobs and will mean more builders investing in the future of our state,” he said.

How will the scheme work?

The scheme will apply to apartments that sell for less than $1 million.

The fund would only be spent if the apartments fail to sell.

Developers and builders will deliver and sell the apartments, with the government stepping in only if sales fall short.

The government will back up to 50 per cent of off-the-plan CBD apartments, capped at $30 million.

To be eligible, developers will have to meet a number of criteria. They must have planning approvals in place, a proven track record of delivering quality projects, and demonstrate financial capability to complete the build.

What has been the reaction?

Nick Emmett, a board member of the Property Council of Australia, welcomed the proposal and the impact it will have on housing supply.

“[It] will accelerate the amount of apartments that can be built in the CBD,” he told the ABC.

“We have market failure in terms of the market not delivering enough — this will go some way to bringing more stock to the market.”

The impact on construction careers

As South Australia looks to boost apartment construction, the demand for skilled workers is expected to rise.

This policy could create new opportunities for project managers, tradespeople, site supervisors and planners across the construction industry.

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Article References

Keane, D (25 October 2025) ‘Apartment construction scheme unveiled by SA government ahead of 2026 election’, ABC News, accessed 27 October 2025.

Starick, P (25 October 2025) ‘Premier Peter Malinauskas to unveil $500m city apartment fund in bid to ease housing crisis’, The Advertiser, accessed 27 October 2025.