SA MARKET OVERVIEW
SOUTH AUSTRALIA
SA Market Overview with James Juers What are the key market trends occurring throughout 2022 in your region?
entering the commercial market to provide diversity to their portfolios. We have also seen continued demand from owners occupiers who have been taking advantage of the lower interest rate regime we are in. We don’t expect this to change even with the interest rate rises. The rates are also a positive sign that reflect an economy that is growing. Reflecting on recent transactions, what has been the profile of buyers and has this shifted from previous years? There has been a lot of new entrants into the commercial property market with investors moving to this asset class since the onset of the pandemic. This has been seen with local investors looking to expand their holdings as well as an influx of investors from the eastern states looking at more affordable investments. South Australia is emerging as a mature commercial property market and investors are starting to take notice of this, which has seen interest increase significantly. COVID has also shown that Adelaide and SA in general is a great base for a life work balance especially with the emergence of platforms such as Zoom and Teams.
The demand for high-quality assets has remained strong throughout the first six months of 2022. Despite fears that interest rate rises would cool buyer appetite, there have been no signs of the market slowing down with yields reaching sub-4% levels across multiple investment sales at multiple price points. There are many investors looking to move money from savings into property which provides a consistent and safe return. What have been the fundamental drivers of demand amongst buyers? Low interest rates and high consumer spending have encouraged investments with investors willing to take low returns over leaving their funds in the bank or other assets. One There is also more recognition that South Australia is a matured property market that provides a more affordable investment option to the eastern states. The alternative investments are not seen as stable as Commercial property. We have seen typical residential investors
JAMES JUERS DIRECTOR MCGEES PROPERTY ADELAIDE
66 –June / July 2022
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