News & Discussion: General CBD Development

[Xaragmata]

Some pics of new Rundle Mall restaurant near Pulteney St. from Friday:

[Howie]

Thanks for the pics mate. It's looking great.

[AtD]

Wow, not much has changed since I was last there over Easter. Is the tenant still secure?

[AtD]

http://www.news.com.au/adelaidenow/stor ... 82,00.html

City property development figures plummet
DANIEL WILLS
May 26, 2009 12:01am
THE value of developments approved by the Adelaide City Council have plunged by $200 million in the past year as the global recession strangles investment in the CBD.

Startling figures handed to the council last night reveal only $50 million in building projects were approved in the first three months of this year, an 80 per cent fall on the $250 million approved in the same period last year.

The value of developments submitted for approval also has plummeted, falling from $291 million in the March quarter last year to only $36 million this year.

The number of applications lodged has fallen by five, to 236, and the number of approvals has fallen by 18, to 250.

Lord Mayor Michael Harbison last night admitted the latest figures reflected a significant slowdown in Adelaide's commercial development.

"There's no doubt it's a considerable decline," he told The Advertiser.

"Local demand is still very strong, but financing is very difficult now. That, coupled with the general world uncertainty, has produced a marked slowdown."

Mr Harbison said major developments, including a 400-room hotel on Hindmarsh Square and others "in the pipeline", would stimulate economic development when complete.

Business SA chief executive officer Peter Vaughan said Adelaide was no different to any other major city in Australia or around the world – all are suffering a decline in construction because of the global financial crisis.

"When the upswing returns demand will be up (in the CBD) and prices will be high," he said.

[joshzxzx]

http://www.news.com.au/adelaidenow/stor ... 82,00.html

City property development figures plummet
DANIEL WILLS
May 26, 2009 12:01am
THE value of developments approved by the Adelaide City Council have plunged by $200 million in the past year as the global recession strangles investment in the CBD.

Startling figures handed to the council last night reveal only $50 million in building projects were approved in the first three months of this year, an 80 per cent fall on the $250 million approved in the same period last year.

The value of developments submitted for approval also has plummeted, falling from $291 million in the March quarter last year to only $36 million this year.

The number of applications lodged has fallen by five, to 236, and the number of approvals has fallen by 18, to 250.

Lord Mayor Michael Harbison last night admitted the latest figures reflected a significant slowdown in Adelaide's commercial development.

"There's no doubt it's a considerable decline," he told The Advertiser.

"Local demand is still very strong, but financing is very difficult now. That, coupled with the general world uncertainty, has produced a marked slowdown."

Mr Harbison said major developments, including a 400-room hotel on Hindmarsh Square and others "in the pipeline", would stimulate economic development when complete.

Business SA chief executive officer Peter Vaughan said Adelaide was no different to any other major city in Australia or around the world – all are suffering a decline in construction because of the global financial crisis.

"When the upswing returns demand will be up (in the CBD) and prices will be high," he said.

Well this is not half suprising, considering the counsil are completely incompetent to do anything constructive.

What did they think would happen?

[Will]

The Advertiser appears to have a sick obsession with the fall in construction activity in the CBD. This is probabaly the 6th article that I have read which pretty much repeats the same thing. What I find particularly disturbing are the underlying tones of the articles.

[SRW]

Well this is not half suprising, considering the counsil are completely incompetent to do anything constructive.

What did they think would happen?

How do you figure this to be the Council's problem?

They can hardly help that businesses are either too cautious or lack finance for development at the moment. For the few who are inclined to invest, the Council has been working to cut red tape, at least insofar as I'm aware.

[how_good_is_he]

All the red tape and delays caused by the ACC over the years is now starting to catching up with them & I predict 5 years of limited activity in the private sector .

Many developments if approved earlier would have missed the GFC and would have been able to get construction finance and would have most likely begun.

The delays in approvals for sites like CC, O'Connell St, Club 199, Aurora North tower etc mean that they are unlikely to proceed in the current climate and possibly for many, many more years.

The irony for developers is that it is a blessing in disgiuse that the ACC is so hopeless! Had they got approval in a timely manner they probably would have been building with a much higher chance of failure in a climate of limited sales/tighter finance.

I hope the ACC can now reflect on the long protracted stoushes and delays and realise it will translate into lost income, productivity, opportunities and jobs.

Maybe as approvals and the ACC income falls will they realise they just took too long to make decisions and time is money.

[AtD]

I know we never miss a chance to bash the ACC here, but in all fairness, there is plenty of office and residential projects that has already been approved by council that haven't yet been built simply because there hasn't been enough leasing pre-commitments or sales to warrant construction in today's credit environment. The ACC has approved more office space than what's currently demanded.

[skyliner]

Well said AtD!

ADELAIDE - TOWARDS A GREATER CITY SKYLINE

[Shuz]

Atd; to further back up your statement. If I vaguely recall the office space approved, it was somewhere in the 300,000 figure of square metres approved. Demand only stands at about 40-50,000 a year, maximum.

[how_good_is_he]

there is plenty of office and residential projects that has already been approved by council that haven't yet been built simply because there hasn't been enough leasing pre-commitments or sales to warrant construction in today's credit environment.

Atd, thats exactly my point - many developments have now missed the boat. Had these developments been approved say 2-3 years earlier [ie O Connell St North Adelaide] they would have had the pre commitments or sales to actually begin because the market was bouyant. Now they will have to wait for the market to return which could be many years away.
Further, the thresholds needed for pre commitments/sales to satisfy the banks are now so high that new developments are unlikely to start.
Two years ago credit was a lot easier and the threshold for sales or pre-commitments was a lot lower and infact developers would have the confidence to start regardless as they were confident of finding buyers/tenants "along the way". Flinders link and CC1,2 is a prime example with big instituitions buying them. It also meant the developers could then re-inject the profits into there next project [ie Minter Ellison building or CC3] and infact had a multiplier effect. Now all this instituitional money is gone. I just hope its not like the 90s where not much happened for 5-10 years.

[Radelaide]

Im going to be the bull and put my neck on the line that a number of very large commercial developments that are not listed on this forum will have commenced by within 2 years time.

[Ben]

Good News!

From The City Messenger:

Oh hap-pie day, the cart returns

by Adam Todd

THE iconic pie cart, a century-old tradition missing from the city’s streetscape for more than a year, is set to return this weekend.

City revellers will again be able to enjoy a late-night pie floater under the GPO clock tower on Franklin St, after the City Council approved its return on Monday night, June 29.

The pie cart, which dates back to the 1860s, closed in April last year, leaving the city without any streetside pie floater vendors.

Pie cart owner Mike Nickols bought the business in 2007, but decided to take the ageing cart off the street and give it a much-needed makeover.

“We ran it for a little while, then we took it off the road to do it all up because it was pretty run down,” he said. “We decided to strip the whole lot and put all new stainless steel right through it.”

The upgrade, which cost almost $50,000, also included a new fridge and cappuccino machine.

Mr Nickols said the revamped pie cart was ready for use by Christmas last year, however his permit had expired and in February the council re-zoned the site for 15-minute parking.

He has since been in negotiations with the council to return to the site. “We’ve had a lot of drama trying to get it back, it’s taken all this time,” he said. Mr Nickols said the pie cart would be out on the city’s streets this weekend. It will operate every day, from 6pm to late.

Rena Centofanti, who will be running the pie cart for Mr Nickols, said was looking forward to the cart’s return. “The pie floater is an icon,” she said.

Lord Mayor Michael Harbison said the council was “very pleased” to see the pie cart return.

Pie carts have been synonymous with the city for more than a century.

During the golden age in the early 20th Century, there were nine pie carts dotted around Adelaide.

But by the mid-1950s there were only two near the GPO on Franklin St and outside the Railway Station on North Tce which remained for the rest of the century. The humble pie floater was declared a state icon in the Heritage Icons list in 2003.

The North Tce pie cart was forced to close in 2007 to make way for the tram extension.

[Omicron]

The GPO again? Hmph. That's much too far away from Rundle/Hindley late-night shenanigans.

I still want one of the damn things, mind.