Adelaide Residential Development m3property Insight - Bucking the national trend!

April, 2019

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“Adelaide benefits from a consistent market with stable growth continuing despite price corrections occurring in other parts of Australia. While Adelaide hasn’t witnessed the strong gains in recent years in value levels, it is unlikely to experience strong falls either.”

Adelaide bucking the national trend!

Adelaide benefits from a consistent market with stable growth continuing despite price corrections occurring in other parts of Australia. While Adelaide hasn’t witnessed the strong gains in recent years in value levels, it is unlikely to experience strong falls either.

Infill vs Greenfield Development

Over the past 10 years, development activity in Greater Adelaide has been focused on infill development, rather than greenfield development. According to the 30-Year Plan for Greater Adelaide (2017 Update), 76% of Adelaide’s growth is now occurring in established suburbs. The 30-Year Plan also reported that there is now more than 20 years of suitably zoned broadhectare land available for development within the metropolitan fringe and nearby townships.

Why?

Developers Perspective – Key Benefits of smaller scale developments

  • Lower developer risk;
  • Easier to obtain funding and less capital required;
  • Quicker presales period, thus making it easier to meet presale targets to cover debt financing; and
  • Construction timeframes shorter, thus reducing holding costs

“Given our stable market and modest population growth, the need for high density living hasn’t been as urgent as the Eastern States”

Kym Dreyer
Managing Director

Current and future infill types driving the market

Authors

Kym Dreyer

Director

View Profile > SA

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