ACCC grants authorisation for construction of affordable housing

18 June 2014

The Australian Competition and Consumer Commission has granted authorisation for Renewal SA to sell a section of a development site in Bowden, South Australia to Investec.

The authorisation is granted on the condition that 40 per cent of the dwellings are developed as ‘affordable housing’ supplied at below market rates.

This housing is to be made available to people in the ‘moderate’ income category who are often employed in health care, social services and administrative support occupations.

Under the arrangement, Renewal SA and Investec will fix maximum rental prices and maximum sales prices (in accordance with affordable housing caps), and apply restrictive criteria for eligible participants.

“The ACCC considers that the arrangement may increase the amount of affordable housing available to those people who cannot access social housing or are excluded from the general housing market in metropolitan Adelaide,” said ACCC Deputy Chair, Dr Michael Schaper.

“The ACCC considers that the public detriments arising from the arrangement are likely to be minimal as the development is limited to 80 dwellings in total and the maximum rental and sale prices are fixed by South Australian Government regulations.”

The ACCC has granted authorisation for five years.

Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010. Broadly, the ACCC may grant authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

Further information about the application for authorisation, including a copy of the ACCC’s determination and public submissions, is available at

Release number: 
MR 150/14
ACCC Infocentre: 

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