Salisbury Council hopes to ease problems with housing affordability.
The recipients of the land will only have to pay for the cost of building a house.
Karen Grogan, from the South Australian Council of Social Service, has welcomed the plan.
"If we could get local councils to join the growing body of people concerned with housing availability and affordability for people who live in their local area, then I think that would be a very good thing," she said.
But Ms Grogan says SA's poorest residents will not be able to benefit from the give-away.
"They're people whose income and circumstance are such that they do not have that sort of an income and they do not have a deposit available to them," she said.
"And even if they didn't have to find a deposit, they'd still have no buffer to own that home in the security of knowing they could actually afford the repayments."
State Govt considers deferred land purchase
SA Housing Minister Jay Weatherill is pleased with Salisbury Council's plan and says the State Government is considering supporting a similar scheme.
"I think that is something that we can look at as well," he said.
"We're looking at deferred land purchase, which is a very similar idea to this.
"We're very keen to entertain these sorts of ways of putting young families into homes and there's a big challenge out there and this is just one of a number of them." - Copyright Australian Broadcasting Corporation
