Housing industry warns of construction 'valley of death' as SA Water cuts approvals for new homes

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Sa Water,David Ryan,Housing

A leading industry group warns SA Water's inability to provide approvals and connections will compound the housing supply woes South Australia is experiencing.

SA Water has cut the number of development approvals for new homes in Adelaide in a move the industry says could lead to a construction "valley of death".

Urban Development Institute of Australia SA chief executive Liam Golding said unless there was intervention from the state government, the residential property sector was headed towards a "valley of death". "To ensure service levels for our existing and new customers are not compromised, and to protect the integrity of existing infrastructure, we can only issue a DAFI on the basis that network capacity and services are available," they said.

Mr Golding said the crisis around water infrastructure had not happened overnight and there was no point building in areas without waste services.

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