Two Defence sites near the Adelaide CBD are moving toward housing. What was announced on Tuesday is a negotiation, a relocation timetable and a preliminary plan, and each one runs on its own clock.
The Commonwealth and South Australian governments announced on Tuesday 29 September that they are entering formal negotiations over Hampstead Barracks at Greenacres, with a view to the state acquiring it for housing. In the same announcement, Defence brought forward its exit from Keswick Barracks to as early as 2030.
On paper, that is two inner suburban sites heading toward residential use. For the builders who will eventually be asked to price the work, the detail matters more than the headline. Neither site has a final plan, a code amendment or a delivery partner yet.
We first reported on Hampstead in February, when it was one of four surplus Defence sites flagged for investigation across Adelaide. Here is what has moved since, and what has not.
Hampstead is a 7 hectare site with a preliminary plan for about 400 homes
Defence describes Hampstead Barracks as a 7 hectare property on Muller Road, around 6 kilometres from the Adelaide CBD. It is used mainly for Army Reserve and Cadet training.
A preliminary structure plan prepared by Renewal SA shows the site holding about 400 homes. The mix is apartment buildings alongside two and three storey townhouses, arranged around a large public park.
Working from those published figures, that is roughly 57 dwellings per hectare across the whole site, before roads and open space are taken out. That is medium density work, not a subdivision of detached lots.
Renewal SA says no final development outcome has been set for either site. Whatever is built will be subject to detailed master planning, code amendments and community consultation.
A negotiation at market value is not yet a sale
The wording of the announcement is careful. The two governments are entering negotiations with a view to divesting the site. Any transfer is subject to the Commonwealth achieving market value and agreeing terms, including infrastructure investment to support future development.
That reflects how surplus federal land is handled. The Commonwealth Property Disposal Policy sets open market sale at full market value as the default. Direct sales to another government are allowed where they support outcomes such as housing supply, but are usually made at market valuation too.
We looked at how that default works, and at a Senate bill that would change it, in August.
What is an off market sale of Commonwealth land?
An off market sale is a direct sale of surplus Commonwealth property to a buyer, usually at market valuation, without the property first being offered on the open market. Under the Commonwealth Property Disposal Policy, sales to a state, territory or local government can be made this way where they support broader government outcomes, including increasing housing supply. The default for surplus Commonwealth property remains open market sale at full market value, unless the Finance Minister agrees otherwise.
On the state side, the money is expected to come from the $500 million Housing Fast-Track Fund. Budget Paper 3 describes it as funding for the government to secure and sell strategic land for housing development.
Renewal SA notes that any acquisition is also subject to due diligence and infrastructure investigations. Until those are done and terms are agreed, Hampstead is a target, not a site.
Until those are done and terms are agreed, Hampstead is a target, not a site.
Keswick is already state owned and waiting on Defence to leave
Keswick is in a different position. Renewal SA took ownership of the 12.81 hectare site on Anzac Highway in late 2023, as part of the land exchange that gave the Commonwealth land at Osborne for the AUKUS submarine shipyard. It was leased back to the Commonwealth for up to eight years so Defence could move out in an orderly way.
Defence now expects to leave by as early as 2030, two years ahead of the previous timetable. Renewal SA then takes control.
The commitment that at least 15 per cent of dwellings at Keswick will be affordable housing is not new. It was set when the land exchange was signed in 2023, and this week’s announcement restates it.
Renewal SA describes Keswick as a longer term urban renewal project. Heritage investigations of the historic buildings on the site are underway, along with work on infrastructure and services. Its future is being planned through the state’s Inner South Masterplan, alongside the former Le Cornu site and the Adelaide Showground.
The relocation sequence runs through Keswick and ends at Warradale
The two sites are linked by where Defence personnel go next.
According to Renewal SA, personnel at Hampstead, including administration staff, cadets and Reservists, will move temporarily to Keswick in 2027. Personnel from both sites will then move permanently to upgraded and expanded facilities at Warradale by 2030.
The Commonwealth’s wording is more conditional. It says no personnel will be required to relocate until suitable alternatives are identified with the affected workforce. Defence’s own Hampstead page says an interim relocation may be required and that detailed planning is ongoing.
Warradale carries a detail worth noting. In June, Budget Paper 3 named Warradale Barracks as its example of the strategic land the Housing Fast-Track Fund could secure. Defence’s February divestment program listed Warradale for partial divestment only. It is now also the site being expanded to take Hampstead and Keswick personnel.
How much of Warradale remains available for housing is not addressed in this week’s announcements.
Renewal SA expects to bring in private sector partners
For builders and developers, the delivery model is the part to watch. Renewal SA chief executive Shane Wingard said the agency is open to master planning and delivering the sites itself, but that the most likely approach is to partner with the private sector.
He pointed to Bowden, Prospect Corner and Southwark Grounds as the projects whose experience would carry across to Hampstead and Keswick. He described Renewal SA’s role as setting a clear plan for each community and creating the conditions for investment.
That means the first commercial opportunity on either site is likely to be a partner selection process, not a tender for construction. The timing of that process has not been announced.
Both sites sit in the back half of the decade
Nothing on either site is ready to price. Hampstead still needs a negotiated sale, due diligence, infrastructure investigations, a code amendment and consultation before a delivery partner is chosen.
Keswick needs Defence to leave, heritage work to settle which buildings stay, and its own master plan.
The earliest firm date in the public material is 2027, when Hampstead personnel are due to move temporarily to Keswick. The next is 2030, when Defence expects to leave Keswick and consolidate at Warradale.
For Adelaide’s housing supply, that places both sites alongside the longer pipeline rather than the next two years of starts. The value of Tuesday’s announcement is that the sequence is now public, and each step can be tracked as it happens.
THE GOOD BUILDER TAKE
Well located land of this size rarely comes up inside established Adelaide suburbs, and both governments clearly want these sites used for housing.
The published plans point to townhouses and low to mid rise apartments. That is medium density work, with different contracts, sequencing and finance to a detached home.
The dates that will matter are the agreed price at Hampstead, the code amendment, and the point Renewal SA goes to market for partners. Until then, these are two good sites with a plan attached, and the plan is still being written.
We will report on the Hampstead negotiation and the Keswick master plan as each reaches a public step. Our weekly newsletter carries each update as it lands.
Frequently asked questions
About 400, under a preliminary structure plan prepared by Renewal SA. The plan shows apartment buildings alongside two and three storey townhouses around a large public park. No final development outcome has been set, and any plan is subject to master planning, code amendments and community consultation.
No. On 29 September 2026 the Commonwealth and South Australian governments announced formal negotiations with a view to divesting the site to the state. Any transfer is subject to the Commonwealth achieving market value and agreeing terms, and to due diligence and infrastructure investigations.
Defence expects to vacate Keswick Barracks by as early as 2030, two years ahead of the previous timetable. Renewal SA has owned the 12.81 hectare site since late 2023 and leased it back to the Commonwealth for up to eight years.
Yes. The South Australian Government has committed that at least 15 per cent of dwellings in any future development at Keswick will be affordable housing. That commitment was first made when the land exchange was signed in 2023.
No delivery partner has been appointed. Renewal SA has said it is open to delivering the sites itself, but that the most likely approach is to partner with the private sector. The timing of any partner selection has not been announced.
Related articles
- Defence Sites Flagged for Potential Urban Renewal Across Adelaide
- A Senate Bill Would Put a 30 Per Cent Affordable Housing Condition on Surplus Commonwealth Land
- Australian Construction Industry Trends Guide
Last updated 30 September 2026. Figures reflect Commonwealth, Defence and Renewal SA statements published up to 29 September 2026. Plans for both sites are preliminary and may change.
General Information Only: This article provides general information about planning and industry developments and does not constitute legal, financial or planning advice. Readers should seek independent professional advice relevant to their circumstances before making decisions.
Author: TGB Editorial
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