Appetite for residential development on the rise as new site hits market

Colliers International predicts strong contest for prime Kent Town site

A prime development site in the cosmopolitan city fringe suburb of Kent Town in Adelaide is expected to attract a wide range of buyers when it hits the market this month.

Colliers International’s Alistair Mackie, Ian Thomas and Oliver Totani have been appointed to sell a 1,302sqm mized use zoned site at 2-4 King William Street in Kent Town, with frontages to both King William and Little Rundle Streets.

Mr Mackie said the site was in an outstanding location on the edge of the Adelaide CBD and Adelaide’s eastern parklands, within walking of several premier schools, major universities, Rundle Mall, Adelaide Oval and the Rundle and Hutt Street café and shopping precincts.

“This property will appeal to an wide range of purchasers including local and national private and corporate developers and syndicated developers with an appetite for commercial, residential and mixed use development,” Mr Mackie said. “With an increased flow of capital from overseas, particularly Asia, we also envisage interest from developers originating from this emerging and growing market."

Mr Mackie said the residential development market in Adelaide was experiencing genuine signs of growth, with the CBD and inner metropolitan apartment and townhouse markets leading the way.

“Several new high rise apartment developments have been successfully completed in the past 18 months and there are several more in the planning and early construction phases,” he said. “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 apartment projects.

“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.

“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."

Mr Thomas said falling construction costs, stamp duty concessions, a persistent low interest rate environment and improved access to development funding were also assisting in driving the residential apartment market forward.

“Development opportunities suitable for medium to high density residential 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,” Mr Thomas said.

Mr Totani recently updated zoning provisions were also a significant factor.

“The ability to develop up to five levels of residential or commercial or a mix of the two, in the sought after inner metro suburb of Kent Town, is very rare,” he said. “I liken Kent Town to the suburb of Richmond in Melbourne – it is undergoing a massive rejuvenation as the older warehouses are developed for mixed-use accommodation. Proximity to the CBD is key.”

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