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Developer savings could be passed on to new homebuyers

27 Jun 14

South Australian homebuyers going in search of new properties could soon find costs are in decline, as developers face reduced charges across the state.

Small and medium-sized developers are benefiting from a reduction being implemented by SA Water, which makes it more affordable to subdivide a block and establish a new water and sewerage connection.

Estimates from the South Australian government suggest real estate owners could save as much as $3,000 per allotment, therefore making it easier for ordinary buyers to get onto the property ladder.

Deputy Premier and Minister for Planning John Rau said it's down to the developers to make sure these savings are passed onto potential homeowners.

"In total, developers across the state could save up to $5 million a year as a result of these changes, which should provide a significant incentive to both developers and people looking to buy a new home," he commented.

Meanwhile, anyone in South Australia who imagines themselves owning a new property is being urged to ask developers about the cost reduction and how it will benefit them.

Those with real estate agent training may be able to offer guidance on the issue and suggest what the best course of action is in order to make the most of the savings.

SA Water is also hoping to consult with developers on other charges that might be changed in the near future, which Minister for Water Ian Hunter said has the potential to streamline services.

Among the areas that are to be addressed is individual developer agreements, augmentation charges and upsizing agreements.

There will also be an investigation into how the construction industry interacts with SA Water and what its requirements are likely to be in the future.

"It's important we review these policies and hear the views of the industry to improve the services that SA Water delivers," Mr Hunter added.