The State Government has announced a sweeping rezoning of the inner city accompanied by stamp duty concessions in a bid to create up to 18,500 new homes in the heart of Adelaide.

Stamp duty concessions of up to $21,330 for off-the-plan apartment sales will be expanded to the rezoned areas – which surround the city – at a cost to the Government of up to $7 million.

The Government, in its just announced Housing in the City policy, has also moved to impose a design review process, similar to that already established in the city, on the rezoned inner-suburban areas. For buildings five storeys and over, a special committee of the Development Assessment Commission will oversee pre-lodgement, design review and assessment in the entire rezoned area. Councils will have one nominee on the committee.

The rezoning sets new minimum and maximum building heights in the rezoned areas, which cover Prospect, Norwood, Unley, West Torrens and a small section of the Burnside council area. Maximum building heights include 10 storeys on small sections of Greenhill Road and in Kent Town, seven storeys on other parts of Greenhill Road and the Parade, eight storeys on part of Port Road facing the parklands, and relatively lower heights around Prospect.

Premier Jay Weatherill said the changes were “about providing attractive new housing that is close to the city, where existing services such as schools, transport and healthcare are readily available”.

He said the Government would work with local councils to upgrade public spaces and streetscapes to provide “more attractive, safe and usable outdoor areas to support more people living in Adelaide’s inner city suburbs”.

The stamp duty relief – previously restricted to the CBD – was designed to stimulate the housing construction sector.

The concession builds on moves first announced in the May 2012 State Budget when the State Government moved to “prime” the market by giving first homebuyers a saving of more than $31,000. Other purchasers could save more than $21,000.

The 2012 concessions applied to the Adelaide City Council area, including North Adelaide. and were set to end in June 2014.

Weatherill stressed that good design would be incorporated into the new planning processes.

“To make this happen, we will be consulting on new design principles with the architecture industry and expanding the role of the design review process,” he said.

Planning Minister John Rau said the rezoning was in force from today, “allowing for increased density in these areas and allowing more people to live closer to the city”.

The Government is explicitly linking the rezoning to its public transport plan announced last week, in which tram routes would be re-established in areas covered by the rezoning, including the Parade, Unley Road and Prospect Road.

Read the full policy document here.