Adelaide's new north-south corridor constructions worth $2.3 billion dollars: HTW
The first half of 2018 has seen a major shift in Adelaide's retail environment, according to the latest report from Herron Todd White (HTW).
The financial valuers stated that for the first time in 16 years South Australia has a Liberal Government, who have long advocated for extended trading hours.
Currently, shops in the Adelaide CBD or tourist precinct are allowed to trade during public holidays and these factors among others may assist brick and mortar retail to compete with the online space.
Infrastructure spending has also continued in South Australia following the change of Government, noted the report.
The Torrens to Torrens, Darlington Upgrade and Northern Connector, which all form part of the government’s North South Corridor are still undergoing construction and are a combined expenditure of $2.3 billion.
There has also been the approval of the current construction of a new Bunnings Warehouse on South Road in Edwardstown, creating a 17,008 square metre super store.
The $45 million Bunnings outlet will be completed early next year.
The report notes that "a part of the infrastructure spending taking place is a planned $174 million upgrade of the Oaklands Crossing (rail/road grade separation), which surrounds the Westfield Marion Shopping Centre".
"True to form, the bulk of the retail development is occurring in the Adelaide CBD, which has seen a sharp increase in the amount of residential accommodation under construction."
In January, it was announced that the $40 million redevelopment of Rundle Mall Plaza will house the new tenant, H&M, across four storeys, Rundle Plaza was constructed in the 1960’s for David Jones.
"In respect to Retail growth, the story over the last few years has been heavily weighted toward supermarkets such as Aldi who have opened 23 stores since entering the market in 2015," stated the valuers.
The 23rd was a centre at 209 Port Road, Aldinga, anchored by Aldi which was completed in January 2018.
There are more on the way with Aldi recently securing another site in Adelaide’s South East suburb of Blackwood, with the purchase of the Blackwood Village Shopping Centre for $5.5 million.
The Westfield Tea Tree Plaza Shopping Centre is also being extended and there are upgrades planned for Westfield Marion, which will take place in 2019.
Despite this, research undertaken by numerous outlets is positive and the retail trading environment seems to be improving in South Australia with retail spending being the second highest in the country in February 2018, reaching 3.7% compared to the national average of 2.7%, the report concluded.
