South Australian Government announces tender for 120 prefab homes

The South Australian Government has confirmed plans to procure 120 turn-key homes using prefabricated construction methods, with a tender to be released in July. The homes will be built over four years and delivered to both regional and metropolitan locations, as part of a pilot designed to streamline housing delivery and support a growing local manufacturing base. (main pic: South Australian Housing Trust properties built with U-Panels.)

The South Australian Housing Trust is leading the project, which will require builders to use prefabricated elements—such as floors, walls and roof panels—manufactured off site and assembled on location. The approach is intended to reduce construction timelines, improve cost predictability, and minimise weather-related delays.

Watch South Australian Housing Trust properties being built with U-Panels

The initiative aims to establish a reliable pipeline of work for modular construction businesses based in South Australia. Although modular methods currently represent only about five per cent of the state’s construction activity—primarily in commercial and institutional sectors—this pilot is intended to extend its use into residential housing, where demand continues to rise.

Premier Peter Malinauskas said prefabrication is one of several approaches being explored to increase the pace of housing delivery. “Prefabricated housing provides an opportunity to deliver more high-quality homes to more South Australians more quickly,” he said.

The announcement was made ahead of a roundtable discussion convened in partnership with AMPLIFY on 19 June, which brought together government, industry and community representatives to examine prefabrication’s role in the housing system. The discussion focused on procurement policy, regulatory reform, and workforce development.

Minister Nick Champion said the tender supports the Government’s broader commitment to boosting housing stock. “This roundtable will help us identify and overcome barriers to prefabricated housing, ensuring we get these homes built and into the hands of South Australians who need them,” he said

Renewal SA’s Office for Regional Housing is already testing modular solutions through a smaller-scale pilot involving six homes from three manufacturers. These homes will first be displayed in metropolitan Adelaide for evaluation by stakeholders, before being relocated to regional towns under the Regional Key Worker Housing Scheme.

In addition to potential time and cost efficiencies, the modular approach may deliver broader benefits, including improved thermal performance, lower carbon emissions, standardised designs, and reduced material waste. The Trust has previously constructed homes using prefabricated wall panels, with noticeably faster build times than traditional methods.

Paul Bassat, Chair of AMPLIFY, welcomed the initiative. “We’re in the midst of a national housing crisis and the community is demanding bigger, bolder action to boost supply. Prefab housing has a key role to play,” he said. AMPLIFY research shows 73% of South Australians support greater use of prefabricated housing.

In a statement, AMPLIFY noted: “Just over 100 days ago, 100 Australians came together to tackle the housing crisis. The most widely supported reform was unlocking prefabricated housing… This announcement shows that message is being taken seriously.”

The upcoming tender will be posted on the tenders.sa.gov.au website.