The city of Adelaide is undergoing a significant facelift with construction volumes at an all-time high and major infrastructure projects ramping up.
These developments include the $1.85 billion new Royal Adelaide Hospital, $535 million redevelopment of the Adelaide Oval, $350 million expansion of the Convention Centre, the $30 million makeover of Rundle Mall, and stage one of the $24 million Victoria Square/Tarndanyanngga upgrade, along with private infrastructure upgrades.
Mayor Stephen Yarwood said the projects are changing the face of Adelaide and signals a vote of confidence in the city.
“We’re seeing an unprecedented level of construction in the city not seen at any other time in Adelaide’s history,” Mr Yarwood said.
“Cranes dot the skyline and a number of big building projects are already underway or about to commence right across the city,” he said.
According to the Australian Bureau of Statistics December 2012 data, construction work done in the state has risen consecutively for three quarters.
While Adelaide is seeing the positives in change, Angie Zigomanis, senior property analyst at BIS Shrapnel, told Smart Property Investment that the level of construction is being offset by the reduction of construction in the state’s residential and mining sector.
"To some extent, they’re offsetting reductions that have been taking place elsewhere. You’re probably seeing reductions in the construction side of the employment in expanding those mines, which is being offset by some of those things that are going on in central Adelaide," Mr Zigomanis said.
As the major infrastructure projects will be spread over an extended period, Adelaide will be experiencing “smaller sustained hits” rather than a “big instant hit”, Mr Zigomanis added.