Previously, South Australia was largely overlooked by international investors in favour of largely established East Coast capital city real estate markets. There are now particular requests for Adelaide blue chip properties in addition to a new class of real estate investor.
South Australian property prices formerly depended on the means of local residents and government. The location is now on the map and is being targeted by interstate, international and local investors who realise the potential that is loaded into Adelaide housing. Cash is being injected by different economies, which in turn leads to consumer confidence in the location therefore additional government considerations.
Factors include unprecedented federal and state government input into infrastructure. Billions of dollars are being spent in order to meet the increased demand for property required by a burgeoning Adelaide population which is driven by a number of factors. South Australia has, in recent years developed world class medical infrastructure based on technology and unprecedented highly skilled immigrants. Education, defence, and I.T. along with sustainable Mining for several lifetimes - South Australia’s Monopoly of particular (rare Earth) resources.
Many traditionally overlooked suburbs have been gentrified with massive government funding and offer excellent redevelopment opportunity and capital gain due to the “ripple effect” of surrounding suburbs.
The recent global financial crisis had very little impact on property prices in Adelaide, opposing trends worldwide, as pricing, in my opinion was not required to be recalibrated and showed massive potential as projects were completed, underway with many more announced and will be followed through on time and on budget in the coming years. The master plan for Adelaide notes a substantial increase in population, and significant infrastructure being put in place to support it. Transport Oriented Development, requires the roads and facilities including shopping centres and amenities to be in place before residential housing is planned for a new area, unlike Sydney, for instance where there are vast numbers of residents commuting long distances, for years – waiting for a proposed train line to be built.
Recently, Ben Ottewill and Bo Lee travelled to Japan and China to meet purchasing executives from several large companies in response to large amount of inquiry for property acquisition services for remote investors of South Australian property. The Direct Negotiations website and networks are currently being rebuilt in order to process the increased international demand.
UK, Europe, South Africa, US, UAE are emerging investor markets , but the strongest demand is coming from currently performing economies. Since 2001, we have seen different trends in investing, but not as strong as the current number of international cash buyers that are presenting themselves.
Currently, the growth of residential apartments in major Chinese capital cities has increased by 50%, which makes investors nervous to expand their local portfolios. There is a requirement for quality residential property investment in markets which show fundamentals for potential for sustainable capital growth.
A (translated ) quote from Bo Lee, Direct Negotiations Adelaide based Chinese consultant, in an email received from China this morning “Over the course of our meeting, the acquisition agency expressed a trend in particular interest of Adelaide properties from their clients in Shanghai. Along with remote investors, a large percentage of buyers are China based parents with children studying in Adelaide.”
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
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