The Albanese and Malinauskas Governments are moving ahead with plans to unlock two strategically located Defence properties near Adelaide’s CBD, with the redevelopment of Hampstead and Keswick Barracks expected to create new housing and community facilities for South Australians.
Hampstead Barracks has been identified for potential divestment following the Australian Government’s independent Defence Estate Audit, which examined Defence properties that are no longer required for current operational needs. The Federal and South Australian Governments have now entered formal negotiations over a possible transfer of the site to the State Government.
Early planning suggests Hampstead Barracks could accommodate around 400 new homes. The preliminary concept includes apartment buildings and two- and three-storey townhouses arranged around a large public park, creating a residential precinct with access to community open space.
The South Australian Government’s $500 million Housing Fast-Track Fund could support the acquisition of strategically located land such as Hampstead Barracks, with the broader objective of accelerating housing delivery. Any eventual transfer of the property will be subject to market-value requirements, mutually agreed terms and appropriate infrastructure investment to support future development.
The transition at Hampstead will also involve planning for Defence personnel currently using the site, including administration staff, cadets and Australian Defence Force Reservists. Defence has begun examining alternative arrangements, with affected personnel not expected to relocate until suitable replacement facilities have been identified in consultation with the workforce.
A second major opportunity is emerging at Keswick Barracks, a 12.81-hectare site located just outside Adelaide’s CBD. Defence now expects to leave the property as early as 2030, two years ahead of the previously planned timetable, after which Renewal SA will take control of the site for its next stage of development.
Renewal SA has already begun examining the long-term housing and urban renewal potential of Keswick Barracks. Investigations include detailed assessments of heritage buildings, infrastructure requirements and essential services needed to support future development.
The Keswick site is expected to become part of a broader connected inner-south precinct alongside the Forestville development at the former Le Cornu site and planned development around the Adelaide Showgrounds on Rose Terrace. Its location provides connections to public transport and nearby facilities including the Adelaide Showground and Ashford Hospital.
The South Australian Government has also committed that at least 15 per cent of homes delivered through any future Keswick Barracks development will be designated as affordable housing. This commitment is intended to ensure the long-term redevelopment contributes to a broader mix of housing options within the inner-south area.
Keswick Barracks has a recent history tied to Australia’s defence infrastructure expansion. Renewal SA acquired ownership of the land in late 2023 through a Commonwealth land exchange agreement connected to the delivery of AUKUS-related infrastructure at the Osborne shipyard. Under the arrangement, the Commonwealth retained the land through a lease for up to eight years.
The future redevelopment of both sites will be staged over several years, with governments planning to work with Defence personnel, local communities and First Nations people during the transition. Defence services and Australian Defence Force personnel based at Keswick will gradually move to alternative facilities as arrangements are finalised.
Prime Minister Anthony Albanese said the changes would allow Defence to concentrate on facilities it requires while making surplus government land available for housing. He said proceeds from Defence property divestments would be reinvested into Defence capabilities, while the government would continue looking at opportunities to increase housing supply.
South Australian Premier Peter Malinauskas said Hampstead and Keswick were strategically positioned because of their proximity to Adelaide’s CBD, employment opportunities and public transport. He said the State Government was seeking to use available land and funding mechanisms to increase housing supply and create more connected communities.
The two projects form part of a broader approach to urban development in Adelaide, where former government and Defence land can potentially be repurposed for residential and community uses. While Hampstead has a preliminary housing concept of about 400 homes, Keswick represents a longer-term redevelopment opportunity that will require further master planning, heritage assessment and infrastructure investigations before detailed plans are established.
The next stages will depend on negotiations over Hampstead Barracks, planning and infrastructure requirements, Defence relocation arrangements and further assessment of the Keswick site. Any redevelopment will therefore take place progressively rather than through an immediate release of all available land.
For South Australians, the projects represent two potential sources of additional housing close to established employment, transport and community facilities. The governments say their cooperation is aimed at bringing strategically located land into productive use while managing the Defence transition in consultation with affected personnel and surrounding communities.
