For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Adelaide

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A prominent five-level building overlooking Hindmarsh Square in Adelaide CBD is up for sale through expressions of interest and is expected to attract interest from a wide range of buyers, according to marketing agents Colliers International and JLL.
The building at 132 Grenfell Street has been refurbished. 
Colliers International’s Alistair Mackie and JLL’s Jamie Guerra are marketing the property on behalf of Primewest.
“This five-level CBD building provides an ultra-modern workplace behind a historic façade,” Mackie said. 
The office and retail building is 100% leased, with anchor tenant Bradford College occupying around 68% of the building as its Adelaide headquarters.
Bradford College is part of the Kaplan group and has more than five years remaining on its lease.
The diversified tenancy mix includes popular restaurateurs and returns an estimated fully leased net income of around $1,106,000 per annum.
The 3,155sqm (approx.) building sits on a virtual 985 sqm island site, said Guerra.
“The building overlooks Hindmarsh Square and has a prestigious Grenfell Street address,” he said. “Positioned on the bustling ‘people’s square’, amongst new developments including office buildings, two hotels and high end residential apartments, this is a premium Adelaide address.
The EOI campaign closes on May 12.
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jonathanchancellor-7SQnKwU6yx

Commercial building in Adelaide CBD up for sale

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Adelaide’s preliminary clearance rate was 63.6 per cent for the week ending April 10 according to CoreLogic RP Data.
Over the March 2016 quarter Adelaide’s clearance rate was 64.7 per cent, up from the 63.0 percent over the March 2015 quarter.
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po-LsXgBTHBmX

Adelaide's clearance rate at 63.6 percent: CoreLogic RP Data

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The Adelaide housing market saw home values remain virtually unchanged in 2015, with the CoreLogic index recording a 0.1 percent slip in home values over the 2015 calendar year. 
But the latest NAB housing insights report suggest very modest growth is likely for 2016
The relatively steady conditions across the South Australian capital have moderately outperformed the broad regional market across the state where values were down 0.4 percent over the year. 
<a href="/images/2016/03/22/Screen%20Shot%202016-03-22%20at%209.11.32%20AM.png" target="_blank">Click to enlarge</a>
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Longer term, however, the regional market (+2.1 percent) has outperformed the state’s capital (+1.9 percent) over the past five years.
The fairly flat housing market conditions across Adelaide reflect relatively soft economic conditions where uncertainty is heightened due to the planned closure of the automotive manufacturing sector in the north of the City. Soft conditions across the mining and resources sector as well as low rates of population growth are contributing to the flat housing market conditions in Adelaide and across the regional housing markets of the state. 
The Murray Lands, which is a very large, primarily agricultural region of eastern South Australia, has shown the largest increase in home values, with a 4.4 percent rise over the year.
<a href="/images/2016/03/22/Screen%20Shot%202016-03-22%20at%209.13.23%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/22/Screen%20Shot%202016-03-22%20at%209.13.23%20AM.png" alt="" width="831" height="493">
 
The underperformance of the Adelaide housing market has largely been a reflection of deteriorating economic conditions in South Australia. The local economy has been challenged by unfavourable demographic factors, weak commodity prices, as well as the long-term structural decline of its manufacturing base. It also lacks the industry mix and job opportunities to draw workers back to the state as the national economy rebalances towards non-mining activity, although the lower AUD is supporting tourism arrivals and expenditure. 
Lacklustre economic performance is expected to continue over 2016, which will severely limit employment and wages growth, with flow on effects for the local housing market. 
<a href="/images/2016/03/22/Screen%20Shot%202016-03-22%20at%209.14.43%20AM.png" target="_blank">Click to enlarge</a>
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According to the NAB Property Survey, sentiment towards residential property in SA/NT is especially weak (SA/NT and WA are the only states where sentiment is negative), and deteriorated even further in the fourth quarter.
Consequently, respondents are now expecting even larger declines in house prices than they reported in Q3 2015, although rental expectations posted a surprising improvement. Given NAB’s expectation for the local economy, population and household income growth to remain subdued, both house and unit prices are expected to remain relatively flat in 2016.
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Adelaide house, unit values to climb 0.2 percent: NAB

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Adelaide had around $270 million worth of industrial sales above of $1 million in the 12 months to December 2015, some 72 properties according to Savills.
Over the last 12 months, approximately 50 percent of the total value of industrial properties reported transacted in Adelaide were valued in the range $1 to $10 million. 
<a href="/images/2016/03/23/Screen%20Shot%202016-03-21%20at%204.04.18%20PM.png" target="_blank">Click to enlarge</a>
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Million-plus Adelaide industrial market reaps $270 million in 2015: Savills

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A $120,000 original 1900 home in Port Adelaide was the weekend's cheapest auction price in Adelaide.
Close to the commercial hub of Port Adelaide, <a href="https://www.realestate.com.au/property-house-sa-port+adelaide-121300450">15 Quebec Street</a> has two bedrooms and one bathroom.
The 206 sqm iron clad dwelling was marketed as a resurrection project by selling agents Kerry Horne and Ralph Ucci of LJ Hooker Woodville.
A Housing Improvement Act order is in place.
The property last traded in 2001 for $66,000, thereby showing an annual price appreciation of 4.36%.
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jrobinson-rf4aSBido9

$120k weekend sale Adelaide's cheapest

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The Adelaide industrial sector has spent 2015 going through a period of consolidation, says Herron Todd White.
The valuation firm said the industrial sector continues to be impacted by a generally weak local economy and reduced activity within the manufacturing sector, in particular the planned 2017 closure of the General Motors Holden plant.
In December 2014 the state government announced grants to assist automotive components manufacturers who were previously dependent on the car manufacturing industry to diversify alternate industries such as defence, the HTW month in review highlights.
The report goes on to note that this did not slow the short term impact of transition, with the SA unemployment rate increasing .06% to 8.2% from May to July.  
Despite the percentage falling to 7.7% in September, the HTW review showed South Australia to have the highest state unemployment rate ahead of Queensland whose is 6.3%.
By September 2015 this had reduced slightly to 7.7% but South Australia remains the highest State or Territory in the country with Queensland the second highest at 6.3%.
The November review also highlights that adding to the lack of confidence in the SA economy there has been continued debate over the construction of the Australian defence force submarines, which in early 2015 Prime Minister Tony Abbott had outsourced the $50 billion contract to manufacturers from either Japan, France or Germany.
"Submarines have previously been constructed by the Australian Submarine Corporation (ASC) within its $120 million facility in Osborne."
"In September 2015 the Government confirmed that all three potential offshore manufacturers would include local construction in satisfying the contract."
The report added that the detail remains unclear and the evaluation process for the tender is not expected to conclude until the end of 2015.
It also mentions that in light of the above economic climate, industrial sales activity has continued to be subdued with the most activity occurring within the $3 million to sub $5 million markets which are dominated by owner- occupiers and private investors.
"There are reports that institutional investors are continuing to show interest in Super Prime asset classes within South Australia due to the higher than national average returns on offer, however this is not yet translating into a shift in market sentiment in the lower sub markets."
The report concludes by suggesting that in general investment activity has been weak with prime rents and values either reducing or holding.
"A falling construction rate has meant a limit in the availability of prime asset classes and reduced rental returns makes the construction of new buildings less viable.
"The impact has therefore seen a continued divide between prime and secondary stock which may be facing obsolescence issues in the current market."
Going against this trend however is the supermarket company Aldi which is due to open its’ first stores in early 2016.
The Regency Park distribution centre is nearing completion which began construction in late 2014 comprising nearly 33,000 square metres of office warehouse accommodation at a reported cost of $70 million. 
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Adelaide industrial sector consolidates: HTW

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Adelaide's industrial sector has been under a period of consolidation in 2015 and continues to be impacted by a generally weak local economy and reduced activity within the manufacturing sector, claims valuation firm Herron Todd White. 
The HTW report cites that impending closure of General Motors Holden Plant in 2017 in particular is negatively impact upon the local manufacturing industry. 
"The State Government in December 2014 announced grants to assist automotive component manufacturers previously dependent on the car manufacturing industry to diversify into alternate industries such as defence.
"The grants have done little to slow the short term impact of the transition however as at July 2015, the South Australian unemployment rate increased to 8.2% (ABS), being .06% above the May result which represented a 15 year high and well above the national average of 6%.
"By September 2015 this had reduced slightly to 7.7% but South Australia remains the highest State or Territory in the country with Queensland the second highest at 6.3%," the report said.
Adding to the lack of confidence in the South Australian economy and the manufacturing sector in particular, has been the continued debate over the construction of Australian Defence Force submarines, the month in review noted.
"In early 2015 Prime Minister Tony Abbott announced that the circa $50 billion contract is to be decided via a competitive evaluation process with manufacturers from France, Germany and Japan in contention for the contract.
"Submarines have previously been constructed by the Australian Submarine Corporation (ASC) within its $120 million facility in Osborne.
"In September 2015 the Government confirmed that all three potential offshore manufacturers would include local construction in satisfying the contract."
The report said the detail remains unclear and the evaluation process for the tender is not expected to conclude until the end of 2015.
It also added that in light of the above economic climate, industrial sales activity has continued to be subdued with the most activity occurring within the $3 million to sub $5 million markets which are dominated by owner- occupiers and private investors.
"There are reports that institutional investors are continuing to show interest in Super Prime asset classes within South Australia due to the higher than national average returns on offer.
"However this is not yet translating into a shift in market sentiment in the lower sub markets."
In general investment activity has been weak with prime rents and values either reducing or holding, the HTW report states.
"Falling construction rate has meant a limit in the availability of prime asset classes and reduced rental returns makes the construction of new buildings less viable.
"The impact has therefore seen a continued divide between prime and secondary stock which may be facing obsolescence issues in the current market."
The report concludes by indicating that the supermarket company Aldi is going against the trend however and is due to open its' first stores in early 2016.
The Regency Park distribution centre is also nearing completion which began construction in late 2014 comprising nearly 33,000 square metres of office warehouse accommodation at a reported cost of $70 million. 
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Adelaide industrial property continues to be impacted by a weak local economy: HTW

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A deceased estate in Dulwich was the cheapest sale at weekend auctions across Adelaide.
Alf Talotta of Turner Real estate sold <a href="https://www.realestate.com.au/property-unit-sa-dulwich-121174198" target="_blank">6/53 Stuart Road</a> for $300,000.
The property is an upstairs unit comprising of two bedrooms and one bathroom.
The air conditioned apartment features a floating timber floor, a new kitchen and a fully tiled modern look bathroom with laundry facilities. 
There is also secure undercover parking under the block which is minutes from Burnside Village. 
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Deceased estate proves Adelaide's cheapest

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The most expensive Adelaide property to be sold at weekend auction was a beachside family home at 80 Myrtle Road in Seacliff.
Brad Allen from Brad J Smith sold the home for $1.18 million.
Built in 1984, the property comprises of four bedrooms, three bathrooms and an all weather alfresco deck with kitchen and bbq area.
South west of the centre of Adelaide, the <a href="https://www.realestate.com.au/property-house-sa-seacliff-121129638" target="_blank">1185 sqm property</a> is metres to Seacliff beach and a short walk to Seacliff train station.
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Seacliff four bedder Adelaide's most expensive sale

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Valuation firm Herron Todd White's November review says that investors are considered to be moderately active in Adelaide.
"The typical demographic of an investor is hard to qualify.
"In Adelaide there is a mix of local, interstate and overseas investors.
"Interstate investors are more likely to be buying on the back of investment seminars with investment groups.
"Overseas investors from what we have seen are more likely to be involved in purchasing off the plan apartments in multi-storey developments in the CBD.
"Investors have generally purchased units as they are considered affordable and easier to manage."
The HTW report added that they are more likely to purchase in new developments along with smaller properties which are infill developments in established locations close to existing infrastructure and finally they purchase detached dwellings or have constructed dwellings in mortgage belt locations to the north and south of Adelaide.
"When it comes to detached housing investors need to work out whether they want capital growth or rental returns.
"In general they have sought new or near new properties in outer areas where there is good rental income and there may also be depreciation benefits.
"Inner ring investors are more likely to be more cashed up and rental income is not the driver for the investment decision.
"They are looking at a longer term for the investment and therefore capital growth.
"When looking at price points we have looked at inner, middle and outer suburbs in both the northern and southern suburbs to make comparison."
It goes on to suggest that outer suburbs such as Munno Para and Seaford Meadows are expanding and there has been a lot of new residential development occurring in the past few years.
"New or near new properties in Munno Para can cost investors between $250,000 and $300,000, whereas the equivalent property in Seaford Meadows can range from $400,000 to $450,000.
"Seaford Meadows typically fetches higher prices due to its proximity to the beach and the rail line which commutes residents to and from the CBD.
"We have compared markets based on standard 3-bedroom, 2-bathroom homes with one or two car spaces for our comparisons."
The month in review also noted that middle suburbs such as Mawson Lakes and Ascot Park are areas which have also had vast development occur in recent years.
"A newly built standard 3-bedroom, 2-bathroom home of similar style can be purchased for $400,000 to $450,000 in these suburbs.
"These two suburbs have been very popular with investors, particulary Ascot Park where re- zoning has meant that older trust homes have been purchased and demolished to make way for brand new medium density developments.
HTW also say that higher price points are evident in inner suburbs such as Prospect to Adelaide’s north, and Parkside to the south.
"In demand character homes are found in these localities, and we have seen an increase in price paid by investors wanting to own a piece of these niche markets.
"Recent sales for character dwellings in these areas range from $800,000 to in excess of $1 million.
"The gross yields differ when comparing properties in the inner, middle and outer suburbs."
The report suggests that investors are achieving gross yields of around 4.5% to 6% per annum in Seaford Meadows and Munno Para respectively.
"Munno Para is achieving a higher yield as the price paid for detached dwellings is lower than those at Seaford Meadows, but investors are achieving similar rent prices for newly built homes.
"Typical rent for a 3-bedroom, 2-bathroom home in these localities ranges from between $300 to $400 per week."
Middle localities are achieving similar gross yields of around 4.7% to 5.2% per annum according to the November report.
"Mawson Lakes and Ascot Park are offering investors the chance to rent properties for upwards of $400 per week, which has been very popular amongst young families and students who wish to live near the CBD but not pay premium rent prices."
The HTW report suggests however that they yields in the inner suburbs are lower than outer and middle suburbs as investors who purchase these properties are more interested in the future growth in value rather than rental returns.
"Homes in Prospect and Parkside typically yield between 3.5% to 4% per annum.
"Townhouses and Units are achieving similar yields in areas such as Mawson Lakes where the purchase of a 3-bedroom, 2-bathroom unit can achieve you a yield of around 5.2%.
"This figure was reached using sales of between $260,000 and $340,000 with rents ranging from $300 to $400 per week.
"The trend is similar in inner suburbs such as Parkside where units can fetch you a yield of around 3.8% per annum.
"This is when comparing rent prices of around $380 per week for 3-bedroom, 1-bathroom units with a value of $520,000." 
 
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