More than $400 million in city apartments under construction or in pipeline
More than $400 million in city apartments under construction or in pipeline ? even as new home market slumps
ADELAIDE?S CBD is experiencing an apartment boom, defying industry claims of a slump in the state?s housing sector.
More than $400 million of new apartment projects are under construction or in the pipeline as people take advantage of low interest rates, generous concessions and the appeal of city living.
In a sign of the strength of the market, buyers snapped up almost a third of the 220 apartments in the $110m Bohem development on Whitmore Square when it went on sale last Saturday.
Deputy Lord Mayor Houssam Abiad, who sits on the Development Assessment Panel, said recent planning changes and incentives were helping to boost demand.
?The State Government has had a big focus on getting more population in the city through things like planning reforms and the stamp duty concessions,? he said.
?A block (of land) that you could only build two storeys on, you can now go to 12 or 13.
?That is all starting to make an impact right now.?
Mr Abiad said the city?s cultural resurgence was making it a more popular place to live.
?The city is a much more vibrant place now than it was five years ago and people want to live here because of the lifestyle it provides,? he said.
Purchasers of off-the-plan apartments in the city are entitled to a partial stamp duty concession until June 30, 2016.
Jade Dickie, 20, of Findon has taken advantage of first-home-owners grants and stamp duty concessions to buy a unit in Bohem because she is attracted to the city lifestyle.
?I always meet up with my friends in the city, whether it is having dinner on Gouger St or shopping in Rundle Mall,? said Ms Dickie, who lives with her parents at Findon. ?There was a lot of savings to buying off the plan.?
But the Housing Industry Association says Adelaide is in a residential building crisis and has blamed the State Government?s decision to cut a housing construction grant for traditional houses as creating a ?housing recession?.
According to Australia Bureau of Statistics figures compiled for the HIA, councils approved 589 detached dwellings in February, down from 795 at the same time last year.
HIA SA executive director Robert Harding said the approvals data ?highlights the dire state of SA?s new housing activity? since the government cancelled the $8500 construction grant in December 2013.
?Importantly, while residential building activity is carrying state economic activity and productivity in other states, South Australia is missing the boat,? he said.
The Master Builders Association policy director Ian Markos said unless changes were made ?quite quickly? the housing market will get worse.
But Property Council SA CEO Daniel Gannon said approvals were increasing over a 12-month period when including apartments and units.
Business SA CEO Nigel McBride said ?we had reason to be optimistic after strong rises in building approvals across December and January, but unfortunately that trend has lost momentum into February.?
Although the government abandoned the housing construction grant in December 2013, it has provided a stamp duty concession of up to $15,500 for people who buy an apartment off-the-plan in the Adelaide CBD. That concession ends in June 2016.
Professionals SA real estate chief executive officer Ted Piteo said the boost in high-rise development in the city would provide a boost for the construction sector.
?You need a lot of people to build these high-rise developments and they take a long time to finish,? he said.
Mr Piteo said he believed many of the high-rise developments in the pipeline would sell and commence construction in the next 18 months.
?I think it is a great thing we are getting more apartment developments in the city,? he said.
?Adelaide has always lagged beyond the other capital cities when it comes to the high-rise apartments in the CBD.
?It?s almost as if Adelaide is growing up a bit because so many more people are embracing city living.?
GOING UP
? $110 million Bohem development on Whitmore Square. On sale.
? $100 million Eclipse project on Austin St. Approved subject to conditions.
? $100 million Vue development on King William St. Under construction.
? $70 million U2 on Waymouth St. Expressions of interest.
http://www.adelaidenow.com.au/reale...source=AdelaideAdvertiser&utm_medium=Facebook
? $40 million Palladium on Light project. On sale.
? $35 million Parkview Apartments. On sale.
? $9 million 60 South development on South Tce. Approved.