Question Time

Affordable Housing

The Hon. I. PNEVMATIKOS (14:44): I seek leave to make a brief explanation before asking the Minister for Human Services a question regarding housing affordability.

Leave granted.

The Hon. I. PNEVMATIKOS: Yesterday, Australia's peak housing body, Shelter, released its housing affordability report. It stated, 'Adelaide is the second most unaffordable place for housing affordability.' In addition to that, the government announced the $450 million affordable housing package. The government's affordable housing pricepoint for homes is $354,000 (or $407,100 where close to public transport). As such, the retail sale price of these homes, including profit, must be $400,000 at most, and likely lower, unless the plan is to sell the homes above the affordable pricepoint, which is already unaffordable for 60 per cent of the population. My questions to the minister are:

1. Will the minister explain how housing affordability has consistently gone down over each quarter her government has been in office?

2. Will the minister release a breakdown of the $450 million package which is alleged to help housing affordability?

3. How much profit is the government making from selling these homes?

4. Why won't these houses be sold at cost price to those in the community who are doing it tough?

The Hon. J.M.A. LENSINK (Minister for Human Services) (14:46): I thank the honourable member for her question. This government has shone a light on the lack of affordability of housing in South Australia, which is something the former government failed to do. I think a lot of people have considered for some time that Adelaide's housing is quite affordable. We often see that sort of commentary in the press. Through our report in AHURI we have shone a light on the fact that there is a large number of people who can't get into the housing market and who are spending a large amount of their income on maintaining rental or maintaining their mortgages and, therefore, they are struggling in that affordability bracket.

We are committed, through our housing strategy, to provide a greater range of product in that space. The Treasurer was authorised yesterday to provide some of those details through the tough negotiations that he has been undergoing with the Greens, so those details have been extracted from the government prior to some of the formal decisions going through the cabinet process. Some of those details I am unable to provide but we will be providing more details once that strategy has been signed off and released by cabinet.

In terms of the Assist program, which I have spoken about previously, and the affordable housing program, they are programs where the criteria for people to access them are as follows: through the Affordable Homes program people need to be 18 years of age or older and a resident of South Australia, not currently owning a property, planning to live in the affordable home, have a household earning of less than $85,000 for single persons or under $110,000 if a family couple, with household assets within the allowed limits.

Those affordable homes are not put on the market for that particular group above that amount, as the honourable member has correctly stated. For people who find that they are actually not able to access that product they can also approach HomeStart Finance, which has a shared equity loan which means that people can access other products as well. We have also announced the Assist program. There has been a specific pilot for older women over the age of 50. All of these homes will be made available on existing state government land to these particular purchase groups. If we need to modify some of those criteria going forward, then that is something we will continue to look at.