New Super-town North of Adelaide: What does this mean?

Written by Chris Nicolas

Urban sprawl is taking effect on Adelaide, as the urban boundary expands to the Gawler region, the once regional town will be transformed into a metropolitan super-town called Concordia with more than 18,000 homes and 46,000 people. The developed land will be 2,500ha of farm land that will be transformed over 40-years subject to state planning approval with the unprecedented project possibly commencing in 2011 and the first-stage released in 2012. The externalities that this will have on the Adelaide property market are going to be quite complex impacting supply, land price, housing affordability, building costs, infrastructure, and property prices just to name a few. The relaxation of development controls as the land is rezoned causes massive opportunities and threats.
The intrusive urban-transformation is in close proximity to the iconic Barossa Valley, which may devalue from the tourist hot-spot taking away from the pleasant scenery. However, this is great news for housing affordability as the new supply will help make-up the short-fall that Adelaide is experiencing.

The proposed features of the new town are:

- 2 x Train stations linked to Gawler rail line (Funded by developer);
- New roads linking to Barossa Valley Hwy, Sturt Hwy & New Northern Expressway;
- 5 x Primary Schools, 2 x High Schools, 1 x Tertiary Institution;
- Offices and Shops to create approximately 6,500 jobs;
- Waste-water treatment plant to supply for irrigation.

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Another externality could be on the cost and availability of resources during the building stages; considering the amount of resources that will be attracted to this area throughout the project. It will be plausible to expect building costs (e.g. labour and materials) to increase in South Australia from 2011 as the project demand for resources pushes up price.

These are only a few of the ripple effect of one of many planned projects happening in South Australia in the foreseeable future. It is important to be able to analyse these impacts when buying property in South Australia (or in any market) in order to capitalize and maximise your return on investment. If you are thinking about investing in Adelaide then get educated and invest smart through the professionals at Direct Negotiations.

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ or call the team on +61 (0)8 84631997