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

Auction Review - 36 Jervois Ave. Magill, Adelaide

SOLD $451,000
3rd October 2009 at 1pm on site
Written by Chris Nicolas
About the Property:
The property is a two bedroom, 1 bathroom original sandstone fronted 1950 Art Deco home. The property is currently leased until 26th November 2009 for $260 per week. The approximately 676sqm allotment appeared to have a slight gradient from the backyard down to the front. Considering the council’s development plan criteria, the zoning requirements stipulate a minimum of 350sqm per allotment. A development of two semi-detached dwellings on this site may be difficult with a non-complying application likely to be necessary. For the successful purchaser it would most likely be desirable to extend and renovate the existing structure rather than redevelop.
Commentary:
The highly skilled auctioneer Phil Harris of Toop & Toop proceeded with the auction at 1pm in reasonably good weather. Many neighbours turned out to watch the event in interest as the bidding started at $390,000. With only three serious bidders, it was evident that the market consisted of young couples and families from different backgrounds.



The bids increased in $10,000 increments until bidding stalled at $440,000, when Phil started to accept bids in $5,000 increments. For one family the bidding exceeded their cut-off point early and at $450,000 the auction was coming to a conclusion with all the bidders at their limits. Phil attempted to squeeze every dollar out of the final two competing parties by calling for additional $500 bids to buy the property. This did not last long and the “fall of the hammer” found a young couple to be the new successful purchasers of 36 Jervois Avenue Magill for $451,000.

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