News & Discussion: General CBD Development

[SBD]

Since the change in government last year we have had no new large apartment buildings start pre sales that i can think of. I assume this is because of the now killed off stamp duty concession. Once Realm, Adelaidean and Luminesque are complete over the next 12 months there is nothing else in the pipeline. I think its a bit concerning as we have seen how long projects take to get from proposal to construction stage. The government need to incentavise people moving to the CBD. Not necessarily stamp duty concession but something. Perhaps it should have been phased out over a number of years rather then a blanket cut off.

I think there were a couple on here that did not get off the ground. Perhaps the market is saturated for now, and developers need to wait until people have moved in to these buildings and talked to their friends about how wonderful apartment living is to get another boost of interest in new proposals. The publicity about one that cooked its residents woudn't have helped, either. There's still construction in Bowden which is pretty central, too.

[floplo]

Since the change in government last year we have had no new large apartment buildings start pre sales that i can think of. I assume this is because of the now killed off stamp duty concession. Once Realm, Adelaidean and Luminesque are complete over the next 12 months there is nothing else in the pipeline. I think its a bit concerning as we have seen how long projects take to get from proposal to construction stage. The government need to incentavise people moving to the CBD. Not necessarily stamp duty concession but something. Perhaps it should have been phased out over a number of years rather then a blanket cut off.

Penny Place (Stage 2 for Kodo) ?
Sky apartments on Pulteney ? (although that was more of a rebadge, admittedly)
Momentum on East Terrace / Rundle Street (how long is that already on the market ?)

I doubt that it really has to do with the stamp duty concession (that was a rebate of 2-3%, if I get that right, so nothing that's really not that far off normal annual price volatility), but with the perceived profitability of other usage models. There are a whole bunch of hotels and student housing blocks in construction or the pipeline, so developers see a higher return in that than in apartments, which dominated the most recent years. I guess that apartment projects will return when the market for hotel and student beds gets saturated and private housing demand has started to build up.

(as an aside, given Realm's heavy overseas marketing, I would venture a guess that this will have an unofficial but substantial student population as well)

[Nort]

I doubt that it really has to do with the stamp duty concession (that was a rebate of 2-3%, if I get that right, so nothing that's really not that far off normal annual price volatility)

Maybe, but I wouldn't be so sure. Stamp duty concessions on the apartments made a massive difference in the size of the deposit you needed to have saved to get in.

[Smithy85]

The introduction of the foreign investor levy/surcharge would not be helping either. Double whammy with the stamp duty concessions being stopped.

[citywatcher]

I don't see it as a problem
We will get better and more sustainable development

Sent from my SM-J730G using Tapatalk

[SRW]

The introduction of the foreign investor levy/surcharge would not be helping either. Double whammy with the stamp duty concessions being stopped.

More likely the expiration of stamp duty concessions, as the Liberals added exemptions to the foreign investor tax. Although, foreign investment is still down though due to federal changes and the restrictions China's placed on their citizens moving money out of the country.

The Libs have created exemptions for the residential foreign investor tax so that developers of projects with 20+ allotments can get a waiver. Hopefully it will see some more city developments get across the line:

[SRW]

Developer puff piece on Today Tonight if you're interested in their spin on the city apartment market and some shots of Kodo:
https://www.facebook.com/ttadelaide/vid ... AwMjUzMjk/

[Jaymz]

As usual, no pics from myself. But walked down Pirie Street today. Number 74 has signage and under a full refurb.... 6 or 7 level building, Maras the owner/developer.

[Jaymz]

Sounds like a good idea to me. Article from todays online version of The Advertiser......




"Adelaide City Councillor Alexander Hyde wants to prevent demolition until construction is ready to start

An Adelaide City councillor says developers need to be shovel-ready before demolishing buildings, as too many are left empty.

Celeste Villani, City Editor, The City

July 16, 2019 7:05am



An Adelaide City councillor is pushing for tighter building controls across the CBD to stop developers from demolishing buildings then leaving sites vacant.

Cr Alexander Hyde will on Tuesday night call on the council to ask the State Government to review demolition controls to prevent existing buildings from being bulldozed until construction is ready to start.

Developers would have to provide they were shovel ready before demolishing a property.

Cr Hyde said there was a “deficiency” in the law which allowed developers to “prematurely” demolish buildings – a behaviour he said had to be stamped out.

He highlighted the demolition of two 1880s bluestone cottages that were razed in 2016, despite being in good condition, to make way for an $18 million apartment complex that fell though in November last year.



“There was a pair of bluestone historic places on Hutt St that were demolished for the (41-apartment Opus project) that never went ahead because there was not enough presale,” Cr Hyde said.

“Buildings can be demolished but there is no guarantee they will be replaced and there are already too many vacant lots with nothing on them in the city.

“(Buildings) should only be demolished at a point where it will actually be replaced.”

A council report suggested Lord Mayor Sandy Verschoor write to the Planning Minister Stephan Knoll and the State Planning Assessment Commission requesting developers seek a separate approval to demolish properties.

That would be on top of original approvals.

Under the proposal, she would also ask for the creation of “robust policies” to ensure buildings were not prematurely demolished.



Tighter demolition controls would have to be addressed in State Government planning reforms.

“We understand that the desired demolition outcome will need to be achieved through the yet to be drafted Planning and Design Code,” a report to the council said.

Property Council of Australia (SA Branch) Daniel Gannon said it did not seem like an “unreasonable proposition”.

The State Government was contacted for comment."

[cmet]

considering sensational Adelaide is the home of experts I’m surprised they didn’t come here and offer jobs directly

[Norman]

Not many people here would have the required accreditation to fulfil that job application criteria.

[SRW]

Also the CAP doesn't assess much that really interests us anymore (<$10m).

[Ben]

ANZ cnr King William and Waymouth is closed for renovations. Must be extensive as says they don't reopen until October 30!

[ChillyPhilly]

Not many people here would have the required accreditation to fulfil that job application criteria.

As I've found, getting the qualification is the easier part.

[Allkai]

ANZ cnr King William and Waymouth is closed for renovations. Must be extensive as says they don't reopen until October 30!

I just happened to walk past and see through the door.

It looks like a complete gut and re-fit - ceiling is gone and internal partition walls are being demolished.