Capital city rezoning to send building heights ‘soaring’

Will this be Australia’s next skyscraper city? 

One area of Adelaide where buildings are currently capped at three storeys could have pre-approval for developments up to six times that height as part of a new proposal.

The state government is pursuing a huge rezoning effort that it says will “change Adelaide’s skyline forever, sending building heights soaring”.  

The move targets the capital city’s CBD, where the government intends to rezone building heights to allow for pre-approval of developments 10 to 15 storeys higher than the current height caps.  

For example, a construction on the westernmost side of the city, on West Terrace, currently requires special approval to build above three storeys. Under the government’s proposed amendment to the City Building Heights Code, constructions would be pre-approved at 20 storeys. 

Adelaide Airport is partnering on the initiative to ensure the changes are made without compromising the safe operation of the major transport hub, which lies just west of the city’s centre. 

Because of the airport’s proximity to the CBD, any development that wishes to exceed the city’s relatively low height caps must be submitted for approval, which is determined on a case-by-case basis, adding time to the development process. 

The proposed height changes would encompass almost all of the CBD, from Angas Street to North Terrace and from West Terrace to Hutt Street. 

The south-west and south-east corners of the city are not being targeted for height increases, as they are largely established residential neighbourhoods. 

Under the new proposed height limits, buildings would still be able to exceed the higher caps by following an approvals process. The state government and airport are also proposing to streamline this process, in order to reduce wait times. 

Though these changes apply to both commercial and residential buildings, the government said it hoped the move might particularly spur on apartment construction, as Adelaide, like the rest of the nation, is grappling with a shortage of housing. 

“More height means more apartments and more places for South Australians to call home,” said housing minister Nick Champion. 

The announcement comes on the heels of premier Peter Malinauskas promising that if Labour is re-elected to govern following the March 2026 election, his party will institute a pre-sales guarantee program for apartment construction, similar to that which was introduced in NSW this year. 

It would see the government commit to being a guarantor on up to 50 per cent of dwellings in eligible off-the-plan developments, up to a cap of $30 million per project. 

Taken together, these two moves could have a big impact on Adelaide’s inner-city apartment market. 

Mr Malinauskas said he believed the height changes would “encourage growth across the CBD like we have never seen before”. 

Though he also acknowledged that the pursuing the amendment would not come without challenges. 

“For decades, a complex planning system combined with airport limits have slowed the growth of the Adelaide CBD. Governments have opted to stick with the status quo rather than pursue difficult reform. No longer.” 

The code amendment will ultimately be informed by an in-depth investigation of the plan by South Australia’s Department for Housing and Urban Development, which will conduct community and stakeholder consultation as part of the process. 

The news was welcomed by the Property Council of South Australia, with executive director Bruce Djite describing Adelaide’s CBD as “brimming with potential” and “the greatest infill site in the country”. 

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