For the first time since 1981, South Australia has seen net migration. Admittedly, it’s modest growth but this growth is expected to continue, leading to a squeeze for both residential and commercial property.
South Australia is on a growth trajectory, as both an innovation state and the festival state. Both activities draw new employees to work in high-value knowledge industries.
Known across Australia as the Festival City, the UNESCO Creative City of Adelaide offers a world-class festival in almost every month of the year, from world-renowned WOMADELAIDE to the bewitching Adelaide Cabaret Festival.
Commercial growth in South Australia’s southeast
Ideally located between the major cities of Adelaide and Melbourne, Mount Gambier and the southeast are experiencing higher-than-normal activity. As Adelaide residential prices continue on their upward climb (26.3% in the 12 months to March 2022 and 5.7% in the March quarter), we’re seeing people and companies take advantage of more suitable space and lower prices.
The demand in investor appetite for industrial and logistics premises, especially in Adelaide, is reshaping how we send and receive goods, with Melbourne becoming a secondary port now goods can be warehoused in Adelaide and in the southeast.
Noted as one of the fastest-growing locations in regional South Australia, Mount Gambier boasts a median home price of $280,000. Affordable housing is a bonus for workers transferring from capital cities to take up job opportunities in this region.
Business SA is pushing for a 50% cut in payroll tax for regional South Australia to encourage more investment by global and interstate firms. Currently regional Victoria is benefiting from a regional payroll tax cut that was designed to incentivise businesses during Covid-19. We trust the government will see the logic of encouraging prosperity in regional South Australia. A cut in payroll tax would go far to galvanising investment activity in this region.
As more logistics companies are squeezed out of Melbourne and Adelaide due to lack of suitable premises and high rental costs, we expect to see increased demand in Mount Gambier.
Infrastructure spending by the Federal Government
The May 2022 budget saw Federal Government commitment of $516 million to South Australian infrastructure projects, An additional $2.264 billion is allocated to complete the final 10.2 km of the North South Corridor – Torrens to Darlington, which will improve transport links across Adelaide to connect to Anzac Highway. Around $60 million is earmarked for targeted investments to improve national supply chain resilience. This latter spending can only promote further investment in regional hubs such as Mount Gambier.
Commercial real estate growth South Australia
Adelaide has seen a growing number of supply chain and manufacturing companies take up warehouse space, with businesses noting Adelaide’s relative affordability, resilience to global shocks and increasingly, the base for pharmaceutical, defence and technology industries.
The southeast, as a vital supply chain hub, is poised to play a crucial role in the future prosperity of South Australia.
Can we help with your Mount Gambier commercial property?
Call Herbert Commercial on 08 87 250 500 for a complimentary annual investment portfolio assessment. From this assessment, feedback may warrant the need to seek Herbert Commercial’s advice and expertise with formulating a plan to action restructuring or renegotiating the best lease scenario moving forward. We’re here to help.
As the only dedicated commercial property agency in Mount Gambier, we have a network with and are sought after by national commercial agencies as a trusted extension to their services. Our wealth of commercial knowledge of the Mount Gambier market extends to the broader commercial market, meaning we can ensure you achieve your commercial property goals.