Property News. Adelaide. This month: Property trends reported in the Australian Media November residential property research
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1 Adelaide Property News residential property research Property trends reported in the Australian Media November 2013 This month: A new era of health research in South Australia begins. Extra space part of Woodville Station Rezone HIA forecasts continued recovery in SA new home building Major projects highlight confidence in South Australia Strong demand sees release of more apartments at Bowden HIA: New house sales: Strongest rise in South Australia. Sources used in this report: Government of South Australia ( Housing Industry Association ( Adelaide Brisbane Melbourne Perth Sydney Shanghai
2 A new era of health research in South Australia begins. Report source: Government of South Australia media release: November 29, The South Australian Health and Medical Research Institute - the first stage in what is set to become a world-class medical precinct in Adelaide has been officially opened today. Premier Jay Weatherill today joined Prime Minister Tony Abbott to open the $200 million research institute on North Terrace, which will be home to more than 600 scientists and medical researchers. Mr Weatherill announced an additional $15 million for SAHMRI, which brings to $85 million the total State Government investment since it established the institute. The South Australian Health and Medical Research Institute is much more than a striking new building on Adelaide s skyline - it is a symbol of our ambitions for South Australia, Mr Weatherill said. With state-of-the-art laboratories and equipment, scientists and clinicians will work together there in search of better treatments and cures for some of our most challenging diseases. Across the whole health and biomedical precinct - which will include the new Royal Adelaide Hospital and two new University of Adelaide and University of South Australia facilities - thousands of staff will be employed. They will be working in the high-tech jobs of the future and their presence in the precinct will provide an injection into the city s economy and vibrancy transforming the West End. It is an exciting time in health and medical research and an exciting time for the city. Health Minister Jack Snelling said SAHMRI s research themes would include areas that affect all of our lives - including cancer, heart health, healthy mothers, babies and children, infection and nutrition. The institute will focus on research that can be translated into better outcomes in health for the community, Mr Snelling said. It will also support the development of research in South Australia by creating greater opportunities to obtain funding and increase the participation of our researchers in grants schemes from both the public and private sector. For example, this year alone SAMHRI has attracted more than $18 million of new investment into South Australia. Mr Snelling said the health and biomedical precinct would be the largest health and biomedical precinct in the Southern Hemisphere. The new Royal Adelaide Hospital will be complete in 2016 and plans were recently announced to move the Women s and Children s Hospital to the same site by 2023, he said. Adjacent SAHMRI, the new Royal Adelaide Hospital will remain a major teaching hospital and will maintain strong ties with other training and research institutions. Locating hospitals, universities and research organisations together will help convert research from the bench to the bedside, improving the health of all South Australians. The whole precinct will enhance our ability to attract investment, students, clinicians and biomedical researchers to South Australia. Extra space part of Woodville Station rezone. Report source: Government of South Australia media release: November 08, The State Government has today approved the Woodville Station Development Plan Amendment (DPA) paving the way for new housing opportunities close to the city. Minister for Planning John Rau said the precinct will allow for housing that is close to shopping, open space, public transport as well as health and other services. This area is nearby to existing shops and services in the Woodville Road precinct and is directly adjacent to the Woodville Railway Station a fourteen minute journey to the city by rail, Mr Rau said. The site also adjoins the open space associated with the St Clair Recreation Centre and the St Clair playing fields - which can support local and district level sport and recreation for local communities. The land use changes follow extensive public consultation on the plan, involving more than 350 formal submissions. Mr Rau said that concerns of community members have led to significant amendments to the draft plan. I understand that there have been some concerns in the local community about open space and proposed densities, these have been addressed as a result of consultation, Mr Rau said. A large portion of the area initially earmarked for residential rezoning has been retained as open space. There has also been a significant decrease in the proposed densities, including a reduction in allowable building heights from eight storeys down to five. This means the total number of dwellings on the site will be reduced by about one-third. The issue of parking has also been a concern to some people and there have been changes to the policy to ensure more off-street parking is available. To view a copy of the approved DPA refer to ministerialdpas
3 HIA forecasts continued recovery in SA new home building Report source: Housing Industry Association media release, 20 November The Housing Industry Association, the voice of Australia s residential building industry, today released the Spring 2013 edition of its South Australia Outlook, the state s most comprehensive housing report card. The SA Outlook shows the recovery in new home building that has been underway since late 2012 is set to continue gradually over the medium term. Renovations activity in the state is on a path out of recent lows, but the improvements are expected to only take activity to levels that remain below previous highs. Over the past 18 months the South Australian government has taken necessary steps to put an end to what had become a protracted decline in new home building activity, said HIA Executive Director, South Australia, Robert Harding. Combined with an easing in the Australian dollar and lower interest rates, we now look to be on the long road to recovery, added Mr Harding. The residential construction sector is a cornerstone to the State s economy, so this outlook is also encouraging for the state s broader prospects. New housing starts fell by 4.8% to a level just under 8,700 in 2012/13 making that fiscal year the weakest in over a decade. HIA is forecasting a strong recovery of 10.5% in 2013/14, followed by growth of 4.6% in 2014/15. This would leave total starts at a level of 10,055 in that financial year. Total investment into renovations slumped to a decade low of $1.81 billion in the 2012/13 fiscal year. HIA anticipates 2013/14 to represent the beginning of a modest recovery, marked by growth of 7.6% during that fiscal year. Investment into renovations is forecast to remain largely unchanged in 2014/15 (up by 0.1% ) leaving the value at $1.96 billion.
4 Major projects highlight confidence in South Australia. Report source: Government of South Australia media release: November 22, The record number of major projects underway in South Australia is boosting business confidence in the State, Premier Jay Weatherill has told business and industry leaders. Speaking at the annual South Australian Investment Symposium, Mr Weatherill released the Major Developments Directory, which showcases 313 projects underway or planned with a total value of more than $100 billion. These projects are testament to the breadth and depth of our economy, covering sectors such as minerals and energy, defence, manufacturing, water management, health and education, infrastructure and urban development, Mr Weatherill said. Some of these projects are easily visible, such as the refurbished Adelaide Oval, which audiences around the world will see in just 13 days when the second Ashes Test begins. The spectacular South Australian Health and Medical Research Institute building is also the focus of much enthusiasm. Off the back of this government investment, we are seeing substantial private investment particularly in the areas of tourism and hospitality in the city. Government investment in projects like PACE is underpinning private investment in the resources sector. The directory is a compilation of projects valued at more than $5 million each including 70 new projects with more than $13 billion in new capital expenditure. New projects include the proposed $5 billion Braemar Bulk Export Project. Other projects include the $350 million Port Pirie smelter transformation by Nyrstar and the $80 million Para Hills expansion of mining and construction supplier Liebherr Australia s headquarters. We re witnessing an increase in activities involving high-value products and services, and creating high-skilled jobs, which help attract business investment to this state, Mr Weatherill said. A study by the South Australian Centre for Economic Studies estimates that the 57 new projects for which detailed costings estimates are available will create 19,800 jobs by Mr Weatherill also highlighted the importance of projects completed since last year s directory was published and therefore excluded this year. A total of 47 projects with a value of more than $3 billion are now complete including the $385 million Rundle Place on the old Harris Scarfe site, and a $98 million science and research building that will be the home of the Institute of Photonics and Advanced Sensing at the University of Adelaide. These investments and others are providing the infrastructure we need for our state s future, Mr Weatherill said. The South Australian Major Developments Directory 2013/14 is available at Strong demand sees release of more apartments at Bowden. Report source: Government of South Australia media release: November 17, Another 35 apartments will be released for sale today in the State Government s Bowden development, in response to high demand. Housing and Urban Development Minister Tom Koutsantonis said property group Commercial & General is releasing 35 one and two-bedroom apartments for sale. In addition, developer Emmett Property has just purchased a 1520 sqm allotment - the final allotment in the latest land release at Bowden - where it plans to build 37 apartments. Mr Tom Koutsantonis said the high level of demand for apartments at Bowden was exciting. Bowden is setting new benchmarks for inner-city living and promoting a healthy, cosmopolitan lifestyle where pedestrians and cyclists have priority, Mr Koutsantonis said. We have been encouraged by really strong sales and interest at Bowden, showing that South Australians are ready to embrace quality, architecturallydesigned, higher-density living. The addition of highly regarded developer Emmett Property and the first offer of new apartments from Commercial & General is testament to the quality of, and demand for, homes in this growing community. It is a good time to purchase an architecturally-designed apartment while taking advantage of existing stamp duty exemption for off-the-plan apartments and other home buyer grants. The stamp duty concessions and First Home Owner Grants at Bowden amount to more than $31,000 until 30 June 2014 for eligible home buyers. Commercial & General s exclusive release includes apartments fronting a new shared private common green and recreation space between buildings which provides a place for residents to enjoy and entertain. The $1 billion Bowden development will see the construction of more than 2400 homes for approximately 3500 new residents over the next years. Bowden features affordable housing, commercial and retail space, and an innovative public realm with shared streets and parks.
5 HIA: New House Sales: Strongest Rise in South Australia. Report source: Housing Industry Association media release, November 28, South Australia saw the strongest monthly increase in private detached house sales in the month of October 2013, said the Housing Industry Association, the voice of Australia s residential building industry. The HIA New Home Sales report, a survey of Australia s largest volume builders, showed that total seasonally adjusted private detached house sales in South Australia increased by 17.4% in the month of October Over the three months to October 2013 the increase in sales was 10.5%. This October result is very strong in its own right, but it s all the more impressive as it follows two consecutive months of decent gains, said HIA Regional Executive Director, South Australia, Robert Harding. It s also encouraging to note that among the surveyed states, South Australia posted the strongest result in detached house sales not only in the month of October, but also over the three months to October, added Robert Harding. Some pull-back in sales could likely follow in November, but we hope to observe continued upward momentum into 2014, said Mr Harding. These are positive signs that residential construction activity in South Australia is on a path to recovery, but policy makers must not become complacent, cautioned Mr Harding. ABS data highlight the downside risks to South Australia s muchneeded recovery. Upward momentum in private sector detached house approvals evident in the first half of 2013 has since stalled. It is important the government continues to support the residential construction sector in its nascent recovery, said Robert Harding HIA SA Regional Director.
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