A growing number of Australians are investing in commercial property development Adelaide as it’s a safe and secure investment with promising capital growth. It is due to the city’s strong population trends and business confidence.
195 North Terrace is currently for sale via Expressions of Interest, closing Wednesday, May 3. A diversified income stream and rare North Terrace land holdings underpin the asset.
The mining industry provides a vital source of revenue for Australia. It offers export income, royalty payments and employment. The sector also fosters population growth through migration to remote areas, as happened with the gold rushes of the 1850s and 1860s.
However, the current mining boom is not delivering the expected benefits to the Australian economy. It may create a windfall for some service companies and property owners, but the rest of the nation suffers from a malformed boom.
The average conduit for sharing the gains of a resource investment boom is via rising wages. High commodity prices trigger the investment cycle, which lifts wages as labour demand swells. It was the case in the China mining boom of 2000-2011, but it is not today. Instead, commodity prices are falling, sabotaging the mining investment cycle and depressing wage growth.
Moreover, while the overall mining sector is expanding, the proportion of the business that is locally owned and operated is shrinking. It has dropped from a high of 50% in 2007 to 40% now. Moreover, it is now only a tiny proportion of Australia’s total mineral exploration expenditure. As a result, the local content share of the overall spending on the mining industry is much lower than in the peak years of the boom.
This low local content share makes the current decline in commodity prices painful for Australia. It results from policy failures, political bastardy and cowardice over the past decade. A lot of the blame can be laid at the feet of the former Labor government.
The experienced team at LJ Hooker Commercial property development Adelaide understands the complexities of the modern business landscape. They work closely with clients to fully understand their goals and requirements. This results in leading outcomes across sales, leasing and property management. They are also part of a national network that can provide a comprehensive solution to clients navigating the Australian business climate.
Relaxed Building Requirements
When it comes to commercial property development Adelaide, several essential factors must be taken into account. These include the exterior, which prospective tenants will notice first, and the interior layout and facilities. In addition, it’s essential to keep the cost of commercial construction in mind when developing a property.
The director of an Adelaide planning consultancy says the time is right to lift building heights in the city’s CBD to attract more investment and encourage more people to live and work there. Chris Vounasis, whose company is advising on what would be Adelaide’s tallest building – a pair of 31-storey towers behind the Newmarket Hotel – said the city had missed out on a significant opportunity to maximise heights around parklands, some city squares and critical infrastructure, such as trams and main roads.
Vounasis said lifting building limits in the CBD could be done without risking flight paths, given changes to zoning and recent experience with higher buildings in the suburbs. The city’s east end, where the towers will be located, was also an area that lent itself to increased height.
Increased Demand for Corporate Office Space
With the influx of mining companies, the demand for corporate office space in Adelaide has increased significantly. Despite this, the market still has relatively low vacancy rates compared to other major Australian cities due to the large number of new office developments in the city.
The city has many offices for business needs, from traditional serviced offices to high-energy coworking spaces. In addition, these workspaces offer a flexible and convenient way for businesses to expand or contract at short notice with no leases or brokers. This flexibility makes it easier to adapt to economic and market changes.
Moreover, the Adelaide airport is a crucial business hub serving the region and beyond with regular flights to destinations across Australia, Asia, Europe and the Middle East. The city also has several government grants and incentives encouraging businesses to operate in the area. These initiatives are estimated to boost the local economy by more than $2 billion over the next three years.
Commercial property development Adelaide has been strong this year, with several significant projects. These include constructing a new 13,500-square-meter office building for BHP Billiton and several other necessary facilities for the South Australian police force and the Australian Tax Office.
As a result of the increased demand for office space, prices are on the rise in the city. The average price per square meter for commercial properties in Adelaide is $503 / sqm in the central CBD and $440 / sqm in the Adelaide Fringe.