THE PROPERTY DEVELOPMENT REVIEW
For instance, we’ve successfully sold eight vacant land parcels this year alone, reflecting a robust interest among buyers. A particularly striking example is a recent sale at Port Willunga, where a block of land fetched an impressive price of over $2,000 per square meter. This high price point underscores the strong demand and competitive nature of the market for land. How is the residential investment market performing in your area? The residential investment market in our area is currently experiencing a noticeable shift. We are seeing a decline in the number of investors entering the market. This trend is primarily due to the elevated property prices, which have escalated to levels where the potential rental returns no longer present a compelling case for investment. Despite an increase in cost of living, property values have remained relatively stable – how do you anticipate the remainder of 2024 will be in terms of market activity & transaction volumes? Currently, the number of properties on the market in our area have dropped by about 30%. This reduction in inventory is contributing to a competitive market environment, where the limited supply is helping to support or even increase property values. Looking ahead to the remainder of 2024, we anticipate that market activity and transaction volumes will be influenced by these inventory dynamics. The current reduction of listings is likely to sustain upward pressure on prices in the short term. However, we expect this trend may shift as we approach the latter part of the year. There is an indication that a substantial number of properties could soon be introduced to the market, which might alleviate some of the supply constraints and potentially lead to a more balanced market. What are the fundamentals that are driving investment & purchasers in your local market area & where are the opportunities for sophisticated investors / developer? Historically, the Southern Coastal region has been undervalued relative to other markets in South Australia, creating a significant opportunity for growth and catch-up. This long-standing undervaluation has started to correct itself, which is attracting those who recognize the potential for substantial returns as property values begin to align more closely with broader market trends. Developers are particularly active, focusing on projects that offer the potential for increased density that cater to the demand for new affordable housing.
September / October 2024 – 121
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