The federal government’s plan to sell off surplus Defence land is prompting states to assess whether former military sites could help ease the housing crunch.
Australia’s housing supply could be bolstered by land once reserved for national defence, as the federal government begins selling off dozens of surplus Defence sites.
Following a Defence Strategic Review that identified a total of 68 sites for divestment, the Albanese government has confirmed it will fully divest 64 Defence sites, partially divest three and retain one site in full.
Defence minister Richard Marles released the Defence Estate Audit in February 2025. Picture: Department of Defence
The review found many sites were costly to maintain, underutilised or no longer aligned with modern Defence needs, prompting what the government has described as the “most significant reform to the Defence estate in Australia’s history”.
The Audit identified sites in every state, including historically significant inner‑city precincts such as Victoria Barracks in Brisbane, Sydney and Melbourne.
Deputy prime minister and defence minister Richard Marles said reform was long overdue.
“In order for the Australian Defence Force to protect our nation and keep Australians safe, it must have a Defence estate that meets its operational and capability needs,” Mr Marles said.
“For many years this has not been the case, with many Defence sites vacant, decaying, underutilised and costing millions of dollars to maintain. That is why the Albanese Government is undertaking the most significant reform to the Defence estate in Australia’s history.”
What it could mean for housing
Many of the sites sit on large parcels of land – often within or nearby established suburbs – and the planned divestment is prompting state governments to assess whether former military land could be repurposed for much‑needed housing.
Following the federal announcement, South Australia was the first state to confirm it would investigate the potential acquisition of Defence land at four locations across metropolitan Adelaide, with an eye for housing.
The sites are:
- Woodside Barracks – 145 hectares, 36km from the Adelaide CBD
- Warradale Barracks – 23 hectares, 11km south of the CBD
- Hampstead Barracks – 7 hectares, 9km north‑east of the CBD
- Edinburgh Parks – 7 hectares, 32km north of the CBD
Any remaining Defence personnel would be consolidated into the Edinburgh Defence Precinct.
Woodside Barracks is one site the SA government is considering acquiring. Picture: Department of Defence
SA housing minister Nick Champion said similar redevelopments on former industrial land had demonstrated how housing supply could be delivered more efficiently.
“Take Southwark Grounds for example. That is now lauded as one of the nation’s most exciting urban development projects, with homes already taking shape,” he said.
“There is no doubt these four sites present an incredible opportunity for thoughtful development for residential and employment projects.”
In Tasmania, the state government has sought further clarification from the government, noting that a number of local facilities would be impacted by the planned divestment.
Tasmanian minister for business, industry and resources Felix Ellis said the state government had not been formally consulted on the sell‑off.
"I will raise concerns with the federal government about the impact of these closures in the North‑West and North‑East communities, with no permanent or alternative facilities confirmed,” Mr Ellis said.
“The Tasmanian Government is supportive of any move that makes more land available for housing, and we will be seeking to ensure we work in partnership with the Commonwealth to increase the island’s housing stock.”
The Australian Institute of Architects welcomed the divestment but warned redevelopment must be carefully governed.
The Institute argued the sites must deliver long‑term public value, not just short‑term housing gains.
Queensland chapter president Caroline Stalker said redeveloping Victoria Barracks in Brisbane could create a vibrant precinct.
“Selling a site like Victoria Barracks creates a once‑in‑a‑generation opportunity to give something back to the public realm,” Ms Stalker said.
“We want to see transparent processes, strong cultural and heritage safeguards, and design‑led planning that prioritises streets, parks, culture and community uses alongside any housing or commercial components.”
Are you interested in the latest in buying and building new? Check out our New Homes section.
English (US) · 