SA MARKET OVERVIEW
SOUTH AUSTRALIA
SA Market Overview with David Buenfeld What are the key market trends occurring throughout 2022 in your region?
they can find on the eastern seaboard and in their own countries. Adelaide’s strong real estate fundamentals are also attractive, the Adelaide real estate market has remained steady year on year and is now showing a level of maturity we haven’t seen before. There is also the lifestyle factor, Adelaide’s great destination appeal continues to draw global accolades with South Australia ranked as one of the world’s ‘Most Livable’ cities, this was boosted with South Australia avoiding the worst of the COVID-19 outbreak and more people from interstate selling up and moving here for lifestyle reasons and also the increased flexibility with the ability to work remotely and from home. We have also seen an ever-increasing demand from owner occupiers looking to take advantage of low interest rates allowing them to get into property ownership as an alternative to leasing. Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years? We have experienced an increase in local buyer activity with investors looking to expand their portfolios into larger assets and in areas where they may not have previously ventured such as industrial.
Buyer demand in Adelaide’s commercial property market remains at its highest level amid some of the strongest selling conditions we have experienced since pre GFC. Investor demand for quality assets remains strong and with limited stock has seen buyers turning to assets with vacancy risk and assets where they can add value, this is no more evident than in the office sector. Demand for industrial property for owner occupiers and tenants alike continues to remain high as does owner occupier demand for small to medium sized assets in other sectors. What have been the fundamental drivers of demand amongst buyers? Key drivers have been the record low interest rates and a boost of confidence in the Adelaide property market both commercially and residentially speaking. Investors continue to see strong value in the Adelaide commercial market who are looking at property as a more bankable alternative to other investment options. This has been buoyed by interstate and overseas buyers pinpointing South Australia with more attractive yields on offer than what
DAVID BUENFELD Director Belle Property Commercial Adelaide
88 – October / November 2022
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