South Australia is on the cusp of a mining boom, which when combined with defence industry investment, will produce further strong demand for industrial, commercial and office space.
South Australia plays a leading role in the development of new and innovative defence technology systems and wins more than 30 per cent of total defence procurement spending in Australia.
With about 70 per cent of the country’s defence companies located in the state, it is an attractive option for commercial and industrial property investors.
The State Government is investing $300 million in developing Techport Australia, Australia’s premier naval hub. Located on the banks of Port Adelaide River, it will bring to Adelaide a fully integrated industrial precinct for suppliers. This will have a flow-on effect in transport, warehousing and logistics businesses. As well, Adelaide will soon be home to the mechanized Army Battlegroup of 1,200 soldiers.
Construction of more than $650 million in capital facilities begins this year, prior to their relocation in 2011. In the minerals sector, South Australia is investing in exploration with expenditure of $297 million to September 2007, up 73 per cent from the previous year. The solid performance of the past year is due to continue as Adelaide’s office market sees the new Aurora Pirie office project, scheduled for completion in March 2009.
This will see growth over the next three to five years as net absorption takes effect. On the retail front, there has been the addition of two bulky goods centres with the Adelaide Hills and Mile End Homemaker Centres opening in 2007, an indication of the confidence of the market and signaling enhanced growth of this sector.
Commercial Property Outlook 2008 - South Australia 
