South Australia – realestatesource

SA Government Gives Lang Walker Green Light to Develop Buckland Park Project, Adelaide

Marc Pallisco — Wed, 17 Feb 2010 03:38:54 +0000

DEVELOPER Lang Walker has been given the green light to build a $2 billion residential village in Adelaide’s north.

The South Australian government approved the first stage of the project, which will provide 614 houses and a town centre.

The Buckland Park project will spread over 1340 hectares, and offer 12,000 housing lots over the next 26 years.

Stockland Sells South Australian Shopping Centre For $87.5 Million

Marc Pallisco — Mon, 07 Apr 2008 03:37:34 +0000

Stockland Retail CEO, John Schroder, said “The sale of Stockland Parabanks is part of our broader capital recycling strategy and will allow us to seek other value-adding opportunities in the market to deliver improved future returns.”

“The sale price is in line with current book value and represents an initial yield of 6.5 per cent.”

“We will continue to focus on using our retail management, leasing and development expertise to add value to our Australian portfolio, which currently has a book value of over $4 billion and a $2 billion development pipeline,” Mr Schroder said.

Stockland Parabanks is located in Salisbury, Adelaide and comprises over 23,800m2 of retail space, housing Woolworths, Big W, Harris Scarfe, Coles and 69 other specialty stores.

Stockland acquired the Parabanks shopping centre in 2003 for $57 million, as part of its acquisition of the AMP Diversified Property Trust.

Stockland is one of Australia’s largest retail property owners, managers and developers. Stockland’s national retail portfolio comprises 43 shopping centres
accommodating more than 3,300 tenants and generating in excess of $5 billion in retail sales annually.

Devine Buys 30 Hectares of Land in Meadows, South Australia

Marc Pallisco — Mon, 18 Feb 2008 10:13:40 +0000

The project, once approved and fully developed, will have an estimated end value of $30 million.

The Meadows acquisition is Devine’s second in South Australia in as many months and follows the purchase of 52.56 hectares in Andrews Farm for $46.02
million in December 2007.

Devine’s founder and Managing Director David Devine said the Meadows site was well positioned to take advantage of the current buoyant conditions in the
Adelaide Hills region, following the re-emergence of significant mining activity in nearby Kanmantoo and Strathalbyn.

“The combination of tight land supply, population growth and a booming local mining industry have resulted in strong demand for quality land and housing
product in South Australia,” he said.

“We will continue to focus our expansion activities in this region and plan to launch our first land release at the Meadows site in mid-2008.

“Following this, we plan to launch the first stage of a new 200-lot masterplanned community in nearby Mount Barker.”

Mr Devine said the company was on track to achieve its target forecast land bank of 10,000 blocks nationally by mid 2010.

Devine General Manager South Australia, Steve Weightman, said approximately 80 per cent of the site will be developed for residential housing, with the
remaining land set aside for future retail or medium density residential use.

“Devine’s expertise in creating new communities stems from clever urban planning and design, from the overall estate to each individual lot,” he said.
“By planning for the future and integrating local services and amenities within our estates, we are creating communities that will stand the test of time.

“The new estate will offer future residents large blocks of land, as well as landscaped entry treatments and reserves and environmental benefits such as
stormwater recycling and sewerage treatment plants. "These green initiatives will eliminate dependency on the River Murray, while providing residents to access recycled water for irrigation purposes.”

All homes will be developed to meet a five star energy rating and will include solar hot water systems.

Mr Weightman said the Adelaide Hills offered home buyers a ‘tree change’ lifestyle, while still enjoying easy access to the Adelaide CBD and surrounding
amenities.

“The Meadows land parcel is centrally located in the heart of the township, with north-facing views over the surrounding valley to Echunga,” he said.
“It is also conveniently located close to the 5,000 hectare Kuitpo Forest, the McLaren Vale wine region and the surf beaches, boating and wine regions of the Fleurieu Peninsula south coast.

“Access to these amenities and the Adelaide CBD are made easy by well established local transport infrastructure and easy access to the South Eastern
Freeway.”

Mr Weightman said the Meadows site would undergo extensive urban planning and design to offer home buyers a complete lifestyle package, including large
land lots, quality designer homes and landscaped streetscapes and parklands.

Land prices are expected to start from $150,000 for an 800 square metre lot. Devine has a current national pipeline of land developments and projects which, when completed and sold, will have an end value exceeding $3 billion.

On 29 August 2007 Devine announced an after tax profit of $21.367 million for the 2006-07 year, 13.2 per cent up on the previous year’s result.

The company’s December 2007 half-year results are expected to be in the range of 15 to 20 per cent above the $6.987 million profit after tax result recorded for the same period in 2006.

Adelaide’s rental market tightens

Marc Pallisco — Fri, 25 Jan 2008 12:28:21 +0000

The metropolitan vacancy rate fell to 0.74% in December which was a strong decline from November’s rate of 1.63%.

REISA President, Robin Turner, said despite a low result the market was not as tight as it was at the same time last year.

“Property managers are saying that tenant demand has not been as high as 12 months ago but it is starting to pick up in January,” Mr Turner said.

“There is such a hot sales market at the moment so some investors are selling their rental properties to receive maximum price for their investment and avoid another interest rate rise placing pressure on their returns. With less stock in the marketplace, the vacancy rate drops despite tenant enquiry level staying about the same.”

He said rents continued to rise steadily and anything below $250 per week was highly sought.

“With two interest rate rises in 2007 and another possible rise in February, the pressure is on the rental market,” he said.

The REISA vacancy rate survey is broken down into six main areas. The parameters and statistics for December 2007 were:

City – All city and North Adelaide only – 0.74%

West – Suburbs west of West Terrace and South Road, and up to Port Road – 0.27%

South – Suburbs south of and bounded by South Terrace, Glen Osmond Road, ANZAC Highway, and South Road – 0.43%

East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 0.86%

North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 1.07%

Hills – Suburbs from Crafers to Nairne – 0.00%

REISA conducts its exclusive residential vacancy rate survey monthly. Around 5000 properties were included in the survey undertaken for December 2007 with statistics kindly provided by REISA member property managers across the metropolitan area.

Prices in Rural SA record strong growth

Marc Pallisco — Fri, 25 Jan 2008 12:25:17 +0000

“House prices in SA are now at a median of $320,000, which is a jump of 8.8% over the past three months and 18.5% over the past year,” he said.

“And the median house price in Rural SA increased by 12.5% over the past three months and 17.9% over the past year to $240,000.”

Mr Turner said the mining boom was having an unprecedented impact on property prices in some regional towns, with Whyalla and Port Augusta again leading the way.

“Whyalla’s median house price has jumped 45.3% over the past 12 months to $288,500 while Port Augusta’s rose by 29.6% to $227,500.”

“At the opposite end of the State, Mount Gambier also had a favourable year with the median increasing by 13.9% to $221,000.”

John Oliver, General Manager, Retail Banking at Adelaide Bank, said that if the resources boom continues then the Australian economy is likely to remain in good shape and as a result South Australia’s housing market should continue to grow.

“The enormous amount of new housing construction occurring in the north of Adelaide is proof of the continuing housing boom in SA,” Mr Oliver said.

“In the longer term, if our exports to China continue to grow, South Australia can expect to see further investment and growth in the resources and mining sector. This will further boost growth in the housing industry,” Mr Oliver said.

Mr Turner said that despite strong investment in these regions, it was important to remember that some parts of South Australia were still affected by the drought.

“SA’s economy is in a precarious position at the moment with some areas soaring and others struggling, so it is important that we share the wealth and encourage investment in other regions.”

“Even in the booming towns, it is important that services are developed and infrastructure built to support the rising populations and ensure the growth is sustainable for many years to come.”

Calm before storm as rental vacancies ease

Marc Pallisco — Fri, 25 Jan 2008 12:23:23 +0000

The November rate has been likened to the ‘calm before the storm’ as property managers get ready for an onslaught of tenant enquires from January to March as people set themselves up for the calendar year.

“When Year 12 results come out and university places are offered, many students start looking for rental accommodation. This is in addition to all the regular families, migrants and lease renewals which come up at that time of year,” REISA President Robin Turner said.

“While a rate of 1.63% still sounds low, this time last year vacancies in Adelaide were under 1% so it is quite a notable improvement on that.”

Mr Turner said tenants should register their details with their local REISA-member property manager to ensure they are given the best chance at viewing all available properties.

“The northern suburbs have had the highest vacancy for a few months now so potential tenants are advised to look there if they are having trouble securing a place,” he said.

The REISA vacancy rate survey is broken down into six main areas. The parameters and statistics for November 2007 were:

City – All city and North Adelaide only – 1.28%

West – Suburbs west of West Terrace and South Road, and up to Port Road – 0.41%

South – Suburbs south of and bounded by South Terrace, Glen Osmond Road, ANZAC Highway, and South Road – 1.09%

East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 1.29%

North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 2.97%

Hills – Suburbs from Crafers to Nairne – 0.00%

REISA conducts its exclusive residential vacancy rate survey monthly. Around 5000 properties were included in the survey undertaken for November 2007 with statistics kindly provided by REISA member property managers across the metropolitan area.

Homeowners get Christmas reprieve

Marc Pallisco — Wed, 12 Dec 2007 13:06:52 +0000

The RBA today announced it would leave the official cash interest rate at 6.75% which REISA President, Robin Turner, said was a relief following last month’s increase.

“Homeowners will now have two more months to get used to the November interest rate rise as the Reserve Bank will only meet again in February,” Mr Turner said.

“With Christmas only three weeks away, REISA applauds the Bank for leaving the official cash interest rate on hold to allow people to balance their budgets during this holiday period.”

Mr Turner said that the next two months would be crucial for households to adjust their budgets particularly as there is already speculation that further rises could be on the cards for 2008.

“REISA urges the Reserve Bank not to increase rates again in the new year, as vulnerable buyers are already feeling the stress from rising property prices and taxes.”

DBRREEF Buys Bunnings Warehouse in South Australia

Marc Pallisco — Thu, 06 Dec 2007 04:10:03 +0000

The 7,011 square metre, freestanding property at 933-945 North East Road is fully leased to Bunnings Warehouse for 13 years, commencing 24 January 2007.

The property is located in the Modbury Regional Precinct – a mixed commercial, retail and trade area – and is 14 kilometres north-east of the Adelaide CBD and nearby to the Westfield Tea Tree Shopping Centre.

WAPF Fund Manager at DB RREEF, Robyn Scott, said: “The North East Road purchase will be the fourth retail asset for the AXA Wholesale Australian Property Fund and provides further diversification into South Australia.”

“We are looking forward to working with the Bunnings Group, a leader in the garden and hardware supply industry.”

Ian Thomas and Paul van Ressema of Colliers International (Adelaide), who worked with DB RREEF on the acquisition, said the Adelaide property market had become more of a focus recently because of the resource and mining boom".

Ian Thomas said: “The North East Road acquisition by DB RREEF is reflective of the resurgence in demand for institutional grade assets in Adelaide.”

Rental market starts to heat up

Marc Pallisco — Thu, 29 Nov 2007 14:19:06 +0000

“Property managers have noticed that tenant enquiries are starting to heat up as people try to set themselves up before Christmas,” REISA President, Robin Turner, said.

“Vacant properties are starting to move more quickly, especially if the price is reasonable.”

Mr Turner said the November interest rate rise had not impacted the housing market yet but current high sales prices may cause rents to rise as landlords try to recoup some of the costs.

“Tenants are reluctant to pay inflated prices so rents really do have to reflect the current market conditions. Most properties within the $200-300 mark will attract good interest,” Mr Turner said.

The REISA vacancy rate survey is broken down into six main areas. The parameters and statistics for October 2007 were:

City – All city and North Adelaide only – 0.44%

West – Suburbs west of West Terrace and South Road, and up to Port Road – 0.41%

South – Suburbs south of and bounded by South Terrace, Glen Osmond Road, ANZAC Highway, and South Road – 0.90%

East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 1.04%

North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 1.60%

Hills – Suburbs from Crafers to Nairne – 3.33%

REISA conducts its exclusive residential vacancy rate survey monthly. Around 5000 properties were included in the survey undertaken for October 2007 with statistics kindly provided by REISA member property managers across the metropolitan area.

Rental vacancies back above 1%

Marc Pallisco — Wed, 14 Nov 2007 13:43:35 +0000

While this is a small increase on the month of March, it offers little relief to prospective tenants who are trying to get their foot in the door.

Real Estate Institute of South Australia (REISA) President, Mark Sanderson, said investors were reaping the rewards of the tightest rental market in a decade.

“It is vital that more investors get in on the property scene to help alleviate the shortage of properties.”

“If people are considering property investment there is no better time.”

“The whole nation is gripped in a rental shortage and we are one of the most affordable states, so Adelaide is definitely a good place to consider for property investment.”

Properties in the $250 per week or lower range were still being noted as the hottest property.

“Anything that is on the market for $250 per week is being snapped up immediately and properties in the $250-$300 range are also very popular.”

“A lot of the current vacancies are being noted in the $300 and above bracket.”

Offering advice for tenants in this tight market, Mr Sanderson that being organised with references and being ready to act quickly was important.

“Suitable properties are out there and are coming on the market all the time – you just have to look frequently, have your references in order and act immediately when you see something suitable.”

The REISA vacancy rate survey is broken down into six main areas. The parameters and statistics for April 2007 were:

City – All city and North Adelaide only – 0.28%

West – Suburbs west of West Terrace and South Road, and up to Port Road – 1.47%

South – Suburbs south of and bounded by South Terrace, Glen Osmond Road, ANZAC Highway, and South Road – 0.92%

East – Suburbs east of the city square, between Payneham and Glen Osmond Roads, excluding the Hills area – 1.07%

North – Suburbs north of North Adelaide, between Port and Payneham Roads, turning into Lower North East Road – 1.00%

Hills – Suburbs from Crafers to Nairne – 0.00%

REISA conducts its exclusive residential vacancy rate survey monthly. Around 5000 properties were included in the survey undertaken for April 2007 with statistics kindly provided by REISA member property managers across the metropolitan area.