Innovative Planning in Action: What South Australia’s ‘Co-Located Housing’ Means for the Future of Urban Development

Australia’s housing shortage isn’t just a big-city problem—it’s a national one. And as demand for diverse, affordable, and community-centric living grows, we need smarter, more flexible development frameworks that go beyond the traditional knockdown-rebuild model.

One of the boldest moves in planning reform has just emerged from South Australia, where six councils—Unley, Walkerville, Campbelltown, Burnside, Prospect and Alexandrina—have adopted the Future Living Code Amendment. This forward-thinking policy allows for the creation of co-located housing—multiple dwellings built within existing residential lots, without requiring demolition or subdivision.

At OwnerDeveloper, we believe this is a game-changing step with potential for national adoption.

What is Co-Located Housing?

Co-located housing allows homeowners and developers to expand existing homes into multiple self-contained dwellings that share key features:

✅ At least 24m² of communal open space per home

✅ Step-free pedestrian access and shared paths

✅ 2+ off-street parking spaces for larger homes

✅ Community title management for shared amenities

✅ Retention of trees, gardens, and streetscape charm

Originally envisioned for elderly homeowners wanting to downsize without leaving their neighbourhood, the model is proving equally viable for:

• Multigenerational families

• Budget-conscious buyers

• First-home buyers seeking inner-suburb living

• Urban investors interested in long-term rental yield

Why It Matters

This is more than a planning tweak—it’s a paradigm shift. Instead of prioritising raw yield through demolition and subdivision, this model puts people and place first. It fosters stronger neighbourhood ties, allows for natural ageing-in-place, and supports growing families with flexibility and dignity.

It also introduces a new path to infill density that aligns with sustainable infrastructure planning—a key consideration in metro regions like Greater Sydney, Brisbane, and Melbourne.

The Development Perspective

At OwnerDeveloper, we’re always assessing where policy meets practicality. Co-located housing is not a silver bullet—but it’s a powerful tool in the broader effort to diversify housing stock, reduce strain on transport and services, and bring more human-centred thinking into urban growth.

And while uptake may be slow at first (as some in the development community have suggested), we see clear opportunity for councils and planners across the country to learn from this model—especially as TOD precincts, ageing populations, and affordability pressures continue to shape our future.

What’s Next?

We’ll be watching closely to see how this policy unfolds and how it might influence broader planning reform across Australia. In the meantime, OwnerDeveloper continues to work with clients on smarter land use, co-living solutions, and housing models that match modern needs.

Because good development doesn’t just fill a block—it builds a better future.

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