Thebarton Brewery Site Redevelopment

[Nathan]

Not like the rental / buying costs of these apartments will do anything to alleviate the housing crisis. They will be well above the average just purely because of location alone and it's proximity to CBD.

From memory of the public consultation, there was a good chunk of "affordable"/key-working housing to be included in the Thebarton master-plan, plus the decoupling of carparks from apartments means reduced costs for those who don't need a car.

[dbl96]

I find it strange these developments are sluggish when ADL has been in a housing crisis for how long now?

Lots of builders went bust in the post-Covid inflation spike because they had entered into contracts at prices which were no longer viable given the post-inflation cost of materials.

There are also major labour shortage in the construction industry which are slowing down projects. This could be easily fixed by adding various trades to the skills list for skilled migration, just like we do with every other skill shortage in this country. But the federal government, which controls migration, won't touch it because both sides of politics pander to the tradie vote, and allowing migrants in to fill the construction labor/skills shortage would put downward pressure on what Aussie tradies can get away with charging.

Also there is always the element of developers wanting to drip-feed supply to keep prices high. Even if, say, a developer had sufficient labour and materials on hand to build a large project as a single stage, they would still prefer to split the project over multiple stages, because if a large number of units/lots are released at the same time, the element of scarcity is removed, giving buyers have more power to bargain down the price.

I do find it strange though that there are not more proposals coming through. There is obviously massive demand at the moment, and if I was a developer I would be getting all my approvals in place now, so that once contractors are available I can move straight into releasing units/lots into the overheated market.

[SBD]

I find it strange these developments are sluggish when ADL has been in a housing crisis for how long now?

Lots of builders went bust in the post-Covid inflation spike because they had entered into contracts at prices which were no longer viable given the post-inflation cost of materials.

There are also major labour shortage in the construction industry which are slowing down projects. This could be easily fixed by adding various trades to the skills list for skilled migration, just like we do with every other skill shortage in this country. But the federal government, which controls migration, won't touch it because both sides of politics pander to the tradie vote, and allowing migrants in to fill the construction labor/skills shortage would put downward pressure on what Aussie tradies can get away with charging.

Also there is always the element of developers wanting to drip-feed supply to keep prices high. Even if, say, a developer had sufficient labour and materials on hand to build a large project as a single stage, they would still prefer to split the project over multiple stages, because if a large number of units/lots are released at the same time, the element of scarcity is removed, giving buyers have more power to bargain down the price.

I do find it strange though that there are not more proposals coming through. There is obviously massive demand at the moment, and if I was a developer I would be getting all my approvals in place now, so that once contractors are available I can move straight into releasing units/lots into the overheated market.

I've mentioned before that I live on the outer edge of an outer suburb. In 2011, land at "Blakeview East" was "released" to a developer to ease the housing crisis. It had its 12th crop since then harvested this week. The Master Plan is no longer on the developer's website.

https://www.abc.net.au/news/2011-10-06/ ... nd/3317666

The other land mentioned in the 2011 article includes "Blakeview West" which has not been developed, and abuts the completed Blakes Crossing development (LendLease) with street connections that just stop at a fence to the paddock, and land at Evanston South which has been and is being developed.

There's also ongoing greenfield development in the Playford Alive areas of Munno Para, Munno Para West, Andrews Farm and Angle Vale as well as urban renewal and brownfield developments. It seems that the availability is being managed by someone, but I'm not sure who. Possibly various government departments, agencies and contractors who provide the utility connections for provision of electricity, water, gas, internet and removal of waste and stormwater. The undeveloped land would drain naturally onto the plains that are being built on first.

I don't know how often the brewery site has flooded in the past, but increased development upstream will lead to shorter, higher floods as water runs off rather than soaks in. Hopefully the new plans allow for future development in other suburbs.

[Bobski]

Not like the rental / buying costs of these apartments will do anything to alleviate the housing crisis. They will be well above the average just purely because of location alone and it's proximity to CBD.

From memory of the public consultation, there was a good chunk of "affordable"/key-working housing to be included in the Thebarton master-plan, plus the decoupling of carparks from apartments means reduced costs for those who don't need a car.

Very interested to see how any of these residences will meet the definition of "affordable", being mortgage repayments less than 30% of household income, when the income limit for a family to qualify for an "affordable" property, per the Homeseeker SA's website, is $140,000 (before tax).

Surely the most a bank would lend a couple on that income would be around $420K? Hard to see any of the properties in this location going for that price, let alone one comprising 2-3 bedrooms to accommodate a family. Even under a shared equity arrangement that seems like a stretch.

Source


Edit: Noting that this article puts the total value of the project at $1 billion.

https://www.developmentready.com.au/con ... h-billions

[Waewick]

https://www.abc.net.au/listen/programs/ ... /104745478

It will be interesting what comes of it.

Great potential

[Waewick]

Not like the rental / buying costs of these apartments will do anything to alleviate the housing crisis. They will be well above the average just purely because of location alone and it's proximity to CBD.

From memory of the public consultation, there was a good chunk of "affordable"/key-working housing to be included in the Thebarton master-plan, plus the decoupling of carparks from apartments means reduced costs for those who don't need a car.

Very interested to see how any of these residences will meet the definition of "affordable", being mortgage repayments less than 30% of household income, when the income limit for a family to qualify for an "affordable" property, per the Homeseeker SA's website, is $140,000 (before tax).

Surely the most a bank would lend a couple on that income would be around $420K? Hard to see any of the properties in this location going for that price, let alone one comprising 2-3 bedrooms to accommodate a family. Even under a shared equity arrangement that seems like a stretch.

Screen Shot 2024-12-15 at 12.04.50 am.png

Source


Edit: Noting that this article puts the total value of the project at $1 billion.

https://www.developmentready.com.au/con ... h-billions

Banks dont focus on income multiples directly, but they do sort of come into play.

Whilst there are plenty of stories of people in the east earning $200k and having million dollar home loans.

I know a while back the way they made their serviceability models works was trying to limit it to 6x income or less, but that may have changed

[rubberman]

https://www.abc.net.au/listen/programs/ ... /104745478

It will be interesting what comes of it.

Great potential

I know! I know!

We could put the new Children's hospital there. Less traffic snarling with an Adam Street exit rather than Port Road, no need for occupying parklands, plenty of adjacent land ripe for redevelopment so people could walk to work at the hospital.

Oh wait.