Around 1,700 houses are likely be built at Sellicks Beach over the next few years, with the state government re-zoning land for residential use.

It says it is fast tracking what will be the single largest release of residential land in the state’s history – set to deliver at least 23,700 houses, most in Adelaide’s northern suburbs.

The government will also establish an Infrastructure Planning and Development Unit to help drive residential developments and coordinate infrastructure investment.

The land release has started with the rezoning of 235 hectares of land at Hackham – creating the capacity for at least 2,000 new houses.

The other sites identified for re-zoning for residential use are at Dry Creek and Concordia, each with a capacity of 10,00 houses.

Master planning for the first of these sites will begin this year. It is anticipated construction on the first homes could begin next year with at least 15 per cent earmarked for affordable housing.

The Infrastructure Planning and Development Unit will be staffed by five full-time equivalents and will be charged with coordinating the provision of utilities such as electricity, water and sewage and public infrastructure such as roads and schools.

Planned deeds outlining important infrastructure and community facilities must be in place prior to land being rezoned for residential development.

The land release would be more than double the number of allotments released in Mount Barker in 2011 and four times the number of allotments released at Mawson Lakes in the early 2000s.

Treasurer Stephen Mulligan told ABC Radio the state government would learn from the mistakes made in the development of Mount Barker and from the overdevelopment of in-fill sites in suburban Adelaide.

The announcement is part of a comprehensive housing package to be unveiled this week, which takes immediate and long term action to address housing pressure points, and is expected to support around $965 million of additional construction activity.

The state government has also committed to boosting public housing stock by building an additional 564 homes for South Australians in need and stopping the sale of 580 others.

Valuer-General data shows the median house price in Adelaide has surged to $670,000 – a 38.1 per cent increase in three years, and 11.5 per cent increase over the past 12 months.

Premier Peter Malinauskas says further reforms designed to relieve pressure on public housing, rentals and affordable homes will be announced later this week.

“We know our state’s population is going to continue to grow and we need to ensure we are making the right decisions now for the long term.

“One important way the State Government can help more South Australians enter the housing market is by promoting the release of more land for residential development.”