Adelaide apartment sales are expected to continue to gain momentum throughout 2016 and 2017, with demand, value for money and off-shore investment the main drivers.
Adelaide apartment sales are finally beginning to show some solid interest and growth as Adelaide gets more comfortable with the urban high rise lifestyle that has been leading a property boom in the larger cities, like Sydney, Melbourne and Brisbane.
According to Kevin Stanley, head of property strategy and research for CommBank, Australia is experiencing an apartment development boom like we have never before seen in the country.
Almost 1500 new apartments are set to be developed over the next two years throughout Adelaide. With around 400 having been built in 2015, figures show that the apartment building boom is only just beginning.
“Adelaide is creating a whole new market of high density, high rise apartment buildings, tapping into the pent up demand among owner occupiers and investors, particularly in the inner city area,” said Kevin Stanley.
Adelaide’s CBD population is continuing to increase for a number of reasons, including Government initiatives and investment into the area, demand from younger and older buyer groups, as well as savvy off-shore investors who have watched the apartment market explode in places like Sydney, Melbourne and Brisbane.
The South Australian Government has implement a number of upgrades to the area, including the Rundle Mall upgrade, the Frome Street bikeway, changes to Victoria Square, Splash Adelaide and even the Adelaide Oval upgrade.
University of Adelaide geography Professor Graeme Hugo confirmed that Adelaide’s CBD is the fastest-growing area in the entire state. It is being driven by 20-somethings and empty-nesters who want ease of lifestyle with great access to amenities like restaurants, shopping, jobs and public transport. Apartment living offers value for money for the younger buyer bracket and the option to downsize without compromising on luxury for those buyers in their 50s and 60s.
Off-shore investment has been a driving force in the apartment boom along the east coast, with the vast majority of overseas buyers from Asia. Tim Allwood, CEO of Compass Property Investing deals with many off-shore investors who are solely interested in high rise apartment properties. “Some are buying to house their children while they gain an Australian education, others are purchasing for their future retirement living, while many other off-shore investors are simply buying for capital growth, happy to have their apartment sit empty while its value increases,” said Tim.
Despite Adelaide’s seeming reluctance in the past to embrace high rise apartment living, developers from across Australia and globally are choosing to meet the demand that buyers are placing on luxury CBD living, giving the Adelaide apartment sales market a very positive future indeed.
Compass Property Investing are the property investment specialists who sell house and land packages as well as new apartments for first home buyers and investors. To contact Compass Property Investing, call 1300-368-626 or visit compassexclusive.com.