Property
Issue No. 50 - December/ /
Adelaide industrial market stays steady
by Mr Kel Spencer
Australia’s economy has proved resistant to the global financial crisis and South Australia’s fundamentals remain strong, but this does not mean we are immune from effects. With occupier space for new rent decreasing, rental growth has been steady in many industrial sectors
across Adelaide. Average prime rents in Adelaide’s Inner West have increased by about 3% to $118/m2 in the past six months to July 2009.
Business investment remains soft; substantial infrastructure investment by the State and Federal governments has certainly been welcomed in Adelaide’s industrial property market.
The Inner North has proved to be the most active region of Adelaide’s industrial market, with most activity around Wingfield and Port Adelaide. Yields have increased and dynamics have changed, allowing private investors to re-enter traditional industrial areas.
Private investors and owner occupiers are the only active buyers in the market. The number of transactions is down on the past 12 months with many buyers waiting until for uncertainty to end.
The State Government identified about 511 hectares of immediately available Industrial-zoned land in the Metropolitan Industrial Land Strategy published in 2007. Also, an estimated 794ha of potentially constrained land is available.
Forecasts show the North and Northwest metropolitan regions hold sufficient industrial land for the near future but the Southern region has limited land available for industrial development in the short term.
Transport upgrades
Improvements to major transport routes including the Port River Expressway, South Road and the Northern Expressway continue to reduce travel time and improve accessibility to Adelaide’s major industrial precincts.
Reaction to improvements to the major transport routes in SA highlight the importance of transport infrastructure for the industry.
The past year has seen a shift in land sales activity tow...
