Activating Adelaide
With world-class projects, a new government and growth in key sectors, South Australia’s property industry is now the nation’s most optimistic. Find out why Adelaide is poised for growth.
The latest ANZ/Property Council Survey posted a record-high level of confidence in South Australia, as the state’s economy is buoyed by a new government, growth in the defence sector and potential for future industries such as space and high-tech manufacturing.
City-shaping projects are powering ahead around Adelaide, and the CBD currently has 15 skyscrapers on the books.
Courtney Procter, executive director of project management at Commercial & General, is currently overseeing $700 million worth of those projects, including Calvary Adelaide Hospital and SAHMRI II.
The redevelopment of the Calvary Adelaide Hospital represent the largest private hospital ever built in South Australia and Procter says the 344-bed facility will “provide significant opportunities for future staff growth.”
Meanwhile SAHMRI II – the second stage of the South Australian Health and Medical Research Institute – will complement Adelaide’s blossoming biomedical precinct. “It’s bringing something special to Adelaide – the first proton therapy centre in the Southern Hemisphere.”
Procter says SAHMRI II is the “last piece of the puzzle on North Terrace” and that the building itself will be a talking point. “People will love walking through the front door. Thirty per cent of researchers will come from interstate and overseas, and the build structure will reinforce the ground-breaking work they are doing.”
It’s a great time to be a property professional in Adelaide, Procter adds.
“It’s exciting to see the number of cranes around the city and to see the projects coming out of the ground. The next group of professionals rising through the ranks don’t need to leave Adelaide to further their careers – they can work on $300 million projects in Adelaide.”
Simon Stockfeld, Charter Hall’s regional development director, agrees.
He’s currently overseeing the $2 million makeover of the GPO Adelaide, which includes the construction of a 20-storey commercial tower, retail outlets and a laneway precinct, while the iconic Telephone Exchange is being refurbished as boutique office space.
“Projects like this are really important to Adelaide. The quality stacks up against any other project in Australia and demonstrates how good development can be. We are being very bold in our plans for what we think will be the best office in Adelaide.”
Stockfeld says Charter Hall’s investment will deliver more than a landmark office tower. It will also generate economic activity and “give back” to the city.
“Adelaide is renowned for its liveability and coupled with growth in industries such as defence, advanced manufacturing and health, it’s a major drawcard for both investors and skilled migrants.
“To ensure we attract and retain the best and brightest, we need to foster the growth of integrated business and lifestyle precincts, like GPO Exchange, that meet the needs of a modern workforce. Creating environments that support productivity, innovation and wellbeing are an essential part of the State’s growth.”
Meanwhile, Rundle Mall’s $30 million upgrade has positioned it as “a compelling destination,” says Adelaide lord mayor Martin Haese says. World famous brands such as Apple and Ted Baker are now established in the precinct – and more are on the way.
Retail spending along the strip has increased by 3.3 in the last year, Haese says, adding that Council has invested in lighting and security upgrades.
“With the Gawler Place redevelopment also underway, it has to be one of the most exciting periods in Rundle Mall’s history. The Gawler Place upgrade from North Terrace through to Grenfell Street will create a high-quality street connecting to Adelaide’s premier shopping destination,” Haese adds.
The Property Council’s executive director Daniel Gannon is encouraged by the level of optimism throughout the industry, and says South Australia’s policy makers are in a solid position to “unashamedly make our state the most attractive investment destination in the country”.
“We need to attract more large companies to South Australia – bringing with them more jobs and opportunities and creating ecosystems of other smaller businesses around them.
“For South Australia to be competitive with the eastern states we need to be a low-tax jurisdiction. Barriers to investment like land tax should be softened to help drive our economy,” Gannon concludes.