THE PROPERTY DEVELOPMENT REVIEW
demand will continue to outpace supply for Industrial properties. Retail: Retail has always maintained a strong position in the market however did take a hit when Covid19 made its way to Australian Shores. I have however seen increased demand over the past 6-12 months and do however anticipate that the up-lift of demand into Retail – more specifically, Local Suburban Shopping Centers with strong net incomes and high yields (or the opportunity for the yields to be strengthened over time) will continue to incline. Commercial: In direct reference to Office Accommodation, we are seeing many businesses and organizations hiring and expanding again and in light of this there is an uplift in demand for larger space with an abundance of buyers in the pursuit of “real assets” being tangible investments with fundamental value. Many Vendors / Landlords are now upgrading their assets to ride the current Market trends and
expectations which is great! In addition to this and in line with new upgrades and developments in A Grade premium space there is a continued high vacancy rate expected within the B, C & D Grade buildings in the Adelaide CBD. This being noted, presents a fantastic opportunity for savvy Investor / Developers to refurbish and repurpose ageing assets. We anticipate another year of strong growth for the commercial sector, particularly in Office accommodation. Development: The demand for development sites has been stronger now than ever – we have a large volume of buyers awaiting appropriate development opportunities which do not sit on the market for very long. Talk us through the most significant deals you have transacted thus far in 2022 49-51 Cheek Avenue & Hurst Avenue, Gawler East: This property consisted of a mixed tenure Shopping Centre and a corner allotment Carpark
located across from the centre. The total (combined) site area was 5,314 sqm* and sold for $2.4M This sale transacted with a 6.8% yield with the potential to further increase. Childcare Centre Sales: Working alongside LJ Hooker Commercial Adelaide principal Mario Bonomi. Full addresses cannot be disclosed as we are currently within settlement period therefore we will refer to them as Centre 1 and Centre 2 for the moment. Centre 1: Located in Lockleys, sold for $6.15M presenting a 3.5% Yield. Centre 2: Located in Westbourne Park, sold for $6.6M presenting a 4.7% Yield.
September / October 2022 – 97
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