Podcast
THE PROPERTY DEVELOPMENT REVIEW
SCAN OR CLICK TO LISTEN TO THE INTERVIEW IN FULL 20 MINUTES
OLIVER TOTANI
With Rob Langton
PARTNER, HEAD OF CAPITAL MARKETS – KNIGHT FRANK ADELAIDE
We’re no longer reliant on a single industry. Diversification in sectors like defence and biomedicine indicates a robust and promising future. The education sector is thriving, promising a surge in student accommodation and city revitalisation plus there’s growing interest in the Build-to-Rent sector. As for market dynamics, well-positioned properties with solid fundamentals are selling within a reasonable timeframe, roughly four to five weeks. However, effective marketing strategies play a crucial role in achieving swift deals. Pricing, naturally, varies across sectors. While some areas, like commercial offices, face challenges, high-quality assets retain their value. Conversations with clients largely revolve around aligning expectations and market realities. Educating clients on strategic pricing and value enhancement is crucial. We encourage unconventional approaches if they promise better outcomes for our clients. Currently, our listings range from CBD development sites to office spaces in prime locations like Bowden Village. We’re excited about the prospects, especially for a fully leased office building with an NGO tenant, set to test the market’s appetite for premium-grade assets. Looking ahead, there might be a shift in buyer sentiment with a possible slowdown in interest rate hikes. This could reinvigorate market activity over the next six to twelve months. Overall, South Australia, particularly Adelaide, seems well-positioned for a period of sustained growth and opportunity.
Our guest on this episode of the Ready Media Podcast is Oliver Totani - Partner and Head of Capital Markets, South Australia with Knight Frank. Oliver is responsible for the growth and leadership of an expert transactional team covering key segments, including office, retail, development site sales, industrial and logistics. Recently, Oliver caught up with RMG’s Rob Langton to share his insights on South Australia’s commercial property market. Oliver’s overall observation is that while there’s considerable talk about current macroeconomic factors impacting the property market, Adelaide seems resilient. People are actively reviewing investment opportunities across different asset classes, indicating a positive outlook. Adelaide benefits from a stable government, contributing to its favourable position. Private investor interest has surged, particularly in industrial properties and neighbourhood centres. Even specialised sectors like childcare are holding steady in terms of demand and pricing. For developers eyeing Adelaide, there’s substantial potential in residential land. The city’s attractiveness, especially with expats returning and a growing population, presents significant opportunities. Additionally, there’s potential in repositioning lower-grade office spaces for higher returns, but it requires astute investment strategies. For those outside South Australia looking to invest here, understanding Adelaide’s evolving economy is crucial.
November / December 2023 – 11
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