THE PROPERTY DEVELOPMENT REVIEW
What types of assets are most in-demand given the current environment? Leased investments continue to be in solid demand even at sub 4% returns. The medical asset class has continued to be popular including pharmacies, medical centres and childcare facilities. An emerging market is “Off the plan office/ warehouse” developments which have been extremely popular among owner-occupiers throughout the last year. Developers have seen this trend and have invested in multiple projects around Adelaide providing these high-quality warehouses of areas up to 350sqm. As many houses and gardens get smaller in new residential developments people and businesses need space to store “stuff” cars, boats, business stock in trade etc This is seen as a real uplift in demand and the supply has followed. Industrial continue to be a strong asset class that has demand exceeding supply. The industrial parks that are created are similar to many seen on the
eastern seaboard, but Adelaide has not seen this in such large quantities and these developments are proving to be extremely popular. What are your expectations for the commercial property market over the next twelve months? We expect the demand to continue but there is no doubt that interest rates rises will influence some buyers. There is a lot of money still looking for a safe haven and alternative investments that show a consistent return.
Single Pharmacy tenant - in one of Adelaide “” high street” retail precincts • 64 Ocean Street, Victor Harbor $3.7 Million (4.73%) – May 2022 Single pharmacy tenant Long term regional centre investment • 349 Prospect rd Blair Athol $1,280,000 ( 3.9%) – June 2022 Medical centre
Talk us through the most significant deals you have transacted thus far in 2022
The examples below are evidence of some of the assets that have sold in the past few weeks • 114 King William Road, Goodwood 3 retail tenants in one of Adelaide “” high street” retail precincts $5.3 Million (3.56% Yield) – June 22 • 158 The Parade, Norwood $5.4 Million (4.00%) – March 2022
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