Colliers International’s Australian director of capital markets and investment services, Alistair Mackie, says several new high-rise apartment developments have been successfully completed in the last 18 months, and many more are in the planning and early construction phases.
The success of these projects has driven the sale of development sites and led to an increase in the number of development approvals for new residential apartments.
“Adelaide is finally coming of age, with residential occupiers and investors now recognising the advantages of inner metropolitan and city-based medium- to high-density and apartment living,” Mr Mackie said.
“Occupiers are now embracing the opportunity to sell the family home and move into more compact and maintenance-free apartment and townhouse-style properties. The younger generation is also leading this change, with young couples and students seeking to be closer to their places of work and study.”
Ian Thomas, also a national director of capital markets and investment services at Colliers, said falling construction costs, stamp duty concessions, a persistent low interest rate environment and improved access to development funding are also helping to drive the residential apartment market.
“Development opportunities suitable for medium- to high-density residential [property] located in and around the Adelaide CBD and the inner metropolitan suburbs are now highly sought after, as developers position themselves for improving market sentiment and consumer confidence,” he said.
[Related: New home sales growth continues]