That’s the view of Chinese property company Zhengtang Group, which has just broken ground on the first stage of a $300 million, 560 apartment, three building West Franklin residential complex in the South Australian capital.
The 22-level building on the corner of Franklin and Morphett streets in the heart of Adelaide will be home to more than 1000 people upon completion in 2019.
Zhengtang Group Australia Managing Director Nicho Teng said the positive impact of major projects such as the new Royal Adelaide Hospital, SAHMRI and bio-medical research precinct on North Terrace was magnified in a relatively small economy such as South Australia – with far more flow-on benefit than a similar investment in larger economies like Victoria, New South Wales or Queensland.
“Adelaide’s vibrant city agenda and strategic investment in an emerging industry is bringing additional people to live in the city and has stimulated flow-on investment in projects such as ours,” he said.
“The opportunity for South Australia rests in replicating this strategy across other sectors to gain real economic momentum.”
The first stage of West Franklin will comprise 280 one and two bedroom apartments over 22 levels. Apartments will be priced from $270,000 for studio apartments up to more than $2.1 million for a penthouse.
Teng said social factors including environment and lifestyle and a shared desire to improve the state’s economic fortunes brought South Australians together.
“I have no doubt that these two factors will combine to drive the state forward, and that this has the potential to happen quickly due to the state’s relatively small size and the high level of agility that enables,” he said.
The West Franklin project is among several major apartment developments underway in Adelaide’s Central Business District as residents flock back to the revitalized city.
There are more than 2300 apartments under construction across 13 projects in the centre of Adelaide with a further 23 projects approved for construction representing another 1500 apartments.
“There is a real energy across Adelaide’s residential development sector at the moment,” said Patrick Robinson, Senior Investment Advisor for Invest Adelaide.
The City of Adelaide’s population is tipped to reach 30,000 by 2020, which is more than double what it was in 2001.
It is being driven in part by more than 30,000 international students who come to Adelaide every year to study at one of South Australia’s three long-standing public universities, Flinders University, University of South Australia, and the University of Adelaide, each of which are consistently rated highly in the international higher education rankings.
In 2015, Adelaide was voted the fifth most liveable city in the world by The Economist Intelligence Unit, which considered the safety, healthcare, educational services, infrastructure and environment of 140 cities.
Greater Adelaide has a population of about 1.3 million of which 23,169 people live in the city, according to the Australian Bureau of Statistics latest Estimated Resident Population (ERP). This represents a 2.1% rate of growth for the city of Adelaide.
Robinson said Adelaide's ambitious goal of doubling the city population by 2040 would require a great deal more residential development to support the forecast growth.
“This will create significant investment opportunity in the city of Adelaide over the next two decades,” he said.Jump to next article