Renewal SA programs generating 2600 jobs, $709m of investment each year: KPMG
14 June 2017
SA Government: The State Government’s program of public housing and urban renewal is generating approximately 2600 jobs and more than $700m of investment each year, according to an independent report.
The report The Economic Value of Renewal SA highlights the significant contribution of the Government’s urban development agency to the local economy.
It estimates the investment generated through projects run by Renewal SA between 2012-13 and 2020-21 will be almost $5.7 billion.
This includes $4.4 billion from the private sector and $1.3 billion from the State Government.
The report by leading advisory firm KPMG was commissioned by Renewal SA.
It also finds that:
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Renewal SA’s main economic contribution is from housing construction with the agency responsible for approximately 15% of all homes built in 2014-15 and 16% in 2015-16, equivalent to about 1200 homes each year.
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Training and employment programs linked to Renewal SA’s housing and urban development activity created an estimated 740 jobs between 2008 and 2015 with a further 440 jobs in 2015-16.
Once the current development program is completed, KPMG estimates Renewal SA will have generated $7.5 billion in new infrastructure, supporting a further 1900 ongoing jobs mainly in the retail, hotel and food sectors.
This increased economic activity will contribute $1.5 billion a year to Gross State Product.
Background
As well as delivering and facilitating approximately 1200 new and refurbished homes each year for the South Australian Housing Trust, Renewal SA is responsible for flagship urban development projects at Bowden, Playford Alive, Port Adelaide, Tonsley and Woodville West.
The agency is also coordinating development in the Adelaide Riverbank precinct including the rejuvenation of the Festival Plaza and the old Royal Adelaide Hospital site.
Renewal SA is responsible for managing the major public housing renewal and new-build programs Renewing Our Streets and Suburbs and 1000 Homes in 1000 Days.
The $208 million 1000 Homes in 1000 Days program to build new public housing will support approximately 500 jobs this year and next year and is due to be completed in December 2018.
The majority of materials being used to build new homes are either sourced, value-added or manufactured in South Australia with builders subcontracting local tradespeople for the work required.
Quotes attributable to Housing and Urban Development Minister Stephen Mullighan
The KPMG report shows the huge benefit to the state's economy from the Government’s housing and urban redevelopment projects.
These projects both increase the supply of affordable and social housing, and provide a jobs-and-investment boost to the construction and community housing sectors in South Australia.
The Government’s commitment to remediate and develop the Bowden area has led to private investment to transform what was once an industrial wasteland into a thriving urban development.
This regeneration is encouraging investment in the housing sector, which in turn creates jobs and provides new and affordable homes, close to the city and other amenities such as public transport.
Other large development projects such as the Riverbank precinct, Playford Alive, Tonsley, Woodville West and Port Adelaide are reshaping our built environment for the benefit of future generations and providing jobs and economic activity now.
We are committed to generating a pipeline of work for local builders, subcontractors and tradespeople to ensure these benefits are felt by as many as possible.
Many of our Housing Trust homes are more than 45 years old and it costs a considerable amount of money to maintain them.
Renewing our public housing will also have an extraordinary social impact by offering more choice, better homes and better-connected communities in South Australia.
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Source: South Australian Government - www.premier.sa.gov.au
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