Developers and investors are turning their sights on Adelaide’s residential and commercial markets as rising prices and offshore competition for sites in eastern-state capitals makes them look at alternative markets.
A growing differential between house prices in the SA capital and eastern states, along with a wave of infrastructure investments in the CBD and state government property sales are some of the reasons underlying growing interest in the city.
“The Adelaide market always works, but it’s the last in the cycle,” Brian Haratsis, the chairman of planning consultancy MacroPlan, said.
RETURN TO EAST-SOUTH MIGRATION PATTERN
The median house value in Sydney last week was $635,000, in Melbourne it was $478,000 and in Adelaide it was $405,000, RP Data figures show.
The gap is prompting a return to a historical pattern of migration from the more expensive eastern states, especially among retirees, said .
“Before the GFC, people really did retire to Adelaide. It’s on again now,” Mr Haratsis said.
MacroPlan last month opened an Adelaide office, headed for now by consultant and former Property Council of Australia chief commercial officer Nathan Paine, but which it hopes will grow to eight full-time staff – the size of its Perth office – over the next two years. Infrastructure developments such as the new Royal Adelaide Hospital, SAHRMI building and Adelaide University’s new Adelaide Medical and Nursing Schools are driving activity in the north-west corner of the CBD.
About MacroPlan: MacroPlan’s experienced and qualified economists align their understanding of macro-economic forces with micro-economic variables such as geographic and industrial characteristics, demographics, labour market shifts, resource demand and commercial realities. Contact Nathan Paine, General Manager – South Australia today to discuss your property research requirements.