RESIDENTIAL LAND RELEASES

In reply to the Hon. D.G.E. HOOD (10 November 2011) (First Session).

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women): The Minister for Housing and Urban Development has been advised:

The Lightsview land development project is a joint venture between the former Land Management Corporation, now the Urban Renewal Authority (URA), and CIC Australia covering 85 hectares at Fosters Road, Northgate. When complete the development will comprise about 1,670 separate allotments that will accommodate about 2,200 dwellings. A retirement village comprising 155 dwellings and a 110-place aged care facility are also being developed on an additional 6 hectares within the project.

The project has been an outstanding success, creating a great urban environment that is proving highly popular with a wide range of home buyers, with 620 allotments sold and 558 settled (at end February 2012) since sales commenced in April 2008.

Lightsview has also performed exceptionally well in the current market when compared to similar developments. This performance includes 160 allotment sales and 162 settlements during the 12 months prior to February 2012.

A major success of the project has been the delivery of the State Government's 15 per cent affordable housing policy. The Joint Venture is delivering the policy through a range of innovative affordable housing types being made available at house and land prices below $319,000. A total of 118 affordable dwellings have been sold to date and the Lightsview Joint Venture was recently awarded both a National and South Australian Urban Development Institute of Australia Award for Affordable Development.

One of the reasons Lightsview sales remain strong is the wide diversity of land and housing products that are available. There are currently 12 allotment types available ranging in price from $114,000 to premium allotments priced at $475,000 which have direct lake and park frontage. The average allotment price to date is $202,000 with the range of allotment types spread throughout the development.

1. The land has not been sold to a developer. The Lightsview project is a land development joint venture arrangement between the URA and CIC Australia. Both parties contribute working capital on a 50/50 basis and similarly share the net profits on an equal basis. The URA separately receives progressive land payments sourced from a percentage of land sales, distributed directly from allotment settlements. The land is therefore transferred directly from the URA to the purchaser of the allotment.

2. The total costs to undertake the Lightsview development is approximately $120,000 per allotment. Of this amount the costs to subdivide and landscape the land is in the order of $70,000 per allotment, which is around 35 per cent of the average sale price for each allotment. The remaining costs per allotment comprise technical and design consultant and project management fees of approximately $17,000; rates and taxes of $17,000; and selling, marketing and community development costs of $16,000.

3. The percentage of the average allotment price that goes to the Lightsview Joint Venture development as profit is 14.25 per cent, which is considered to be at or below the profit margin for a comparable land development project.