Adelaide poised for growth as confidence in SA booms
With world-leading innovation and city-shaping projects underway, Adelaide is well poised for growth, according to property industry experts.
Results from the latest ANZ/Property Council of Australia (PCA) Survey showed a record-high level of confidence for South Australia. PCA attributes this to the state’s economy, buoyed by growth in industries such as health and defence, as well as potential for future industries.
The PCA survey results follow a study last month by BankSA, which found that business and consumer confidence in South Australia is also booming.
Business confidence has jumped 19 points to 119.2 — where 100 is neutral — which is the highest level since the end of the global financial crisis in 2010.
Consumer confidence is also strong, rising 7.7 points to 109.4, its highest level in 4 years.
“Businesses are feeling like the climate’s going to be fantastic, 19 points up is a significant jump, and it’s flowing on to intentions to employ more people, spend more money, bigger purchases,” BankSA Chief Executive Nick Reade told The Advertiser.
Adelaide leading the way
Adelaide has long enjoyed a reputation for being among the world’s most liveable cities and currently ranks in the top 10 of The Economist’s Global Liveability Index. Known for its great food, wine and festival culture, as well as excellent health care, urban design and infrastructure, Adelaide also offers an affordable housing market especially compared to Sydney and Melbourne.
And despite being one of our smaller capital cities in terms of population size, Adelaide is also a world leader in innovation, with strong environmental credentials and ‘smart city’ infrastructure.
World’s largest virtual power plant
South Australia has raced ahead of the country to turn to renewable energy sources. Last year, Tesla installed the world’s largest lithium battery at a South Australian wind farm, to be able to store the energy for summer months and bring down energy prices for locals. A second battery is due to start construction within weeks.
The world’s biggest lithium battery was delivered by Tesla in Adelaide. Image source: AFP
And now, Tesla, with support from the South Australian government is developing a network of at least 50,000 home solar PV and Powerwall battery systems across South Australia – all working together to form the world’s largest virtual power plant.
The new 250-megawatt virtual power plant is designed to further lower energy prices, improve stability to the grid and continue the state’s commitment to reducing fossil fuels. The $30+ million project will be rolled out over a 4.5 years program, starting with 1,100 Housing Trust Home. The first stage of installations have already occurred and will continue through 2018 and 2019.
Smart City
Adelaide has also been first off the mark in becoming one of the world’s ‘smart cities’ with a globally connected economy. The city has rolled out a number of ‘smart’ projects, most notably, ‘Ten Gigabit Adelaide’ – Australia’s first 10Gbps fibre optic network.
The Ten Gigabit Network enables Adelaide businesses to share and receive high volumes of data at 10Gbps data speeds; up to 1,000 faster than the national average.
The network will particularly benefit data-intensive industries such as creative, biomedical, finance, defence, advanced manufacturing, information management and cyber security – and is designed to attract more businesses in these fields to take up residence in Adelaide.
Adelaide is also the first and only international city to join the US Ignite Smart Gigabit Communities Program, which links cities together to foster the development of applications and services that require advanced gigabit networks to run.
City-shaping projects – tourism, health and retail
Alongside these world-class developments in energy and communications, there are also a number of city-shaping projects underway in Adelaide.
Casino expansion
A $330 million redevelopment of the Adelaide Casino has commenced. The project is expected to create up to 800 ongoing jobs as well as attract more new visitors to the city.
“The South Australian tourism industry has so much to offer interstate and international visitors, and the introduction of this new facility, complete with luxury hotel accommodation, outstanding food and beverage offerings and world-class entertainment spaces will help to attract high-end visitors to the vibrant Riverbank Precinct and to the state,” said Adelaide Casino General Manager Luke Walker.
$3.2bn BioMed Precinct
Adelaide will have a new addition to its $3.6 billion BioMed precinct, which is located in the CBD. Designs have been unveiled for a second South Australian Health and Medical Research Institute building – dubbed SAHMRI 2. This $273 million project will house Australia’s first proton therapy unit for cancer treatment and deliver the most technologically advanced radiation therapy in the Southern Hemisphere.
The centrepiece of the BioMed precinct is the new Royal Adelaide Hospital, which opened last year. It’s expected a new women’s and children’s hospital will be added to the precinct in future as well.
Adelaide BioMed Precinct
Retail and commercial
Adelaide’s signature pedestrian shopping destination, Rundle Mall has undergone a $30 million upgrade, with retail spending along the strip up by 3.3% in the last year.
The iconic GPO Adelaide is now undergoing a $250 million makeover, including the construction of a new commercial tower, retail outlets and a laneway ‘lifestyle precinct’.
With so many innovative and large-scale projects underway, it is perhaps unsurprising that confidence levels are so high for South Australia, with some analysts predicting Adelaide property prices will be affected.
According to the latest NAB Residential Property Survey, Adelaide house prices are expected to have the highest forecast growth of all the major cities in 2019.
“Our research shows that confidence in the South Australian residential property market over the next year has lifted, while confidence over the longer-term is also strong,” NAB South Australia General Manager, Gregg Harris told News.com.au.
Real Estate Institute of South Australia President Alexander Ouwens agreed. He said that Adelaide is on track for sustainable, solid and steady growth over the coming few years and is playing catch up to the Eastern property boom.
“Eastern states investors are increasing, open homes are well attended … and business confidence is on the rise,” Mr Ouwens said.
Property Investment Adelaide
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Feature image source: Woods Bagot