A STABLE property market, tax reforms, a large supply of land for sale and a low dollar is making southern Australia a prime location for property investment, business experts say.
A major Australian city is in the midst of a huge public land sell off including prime harbourside sites and properties in inner-city suburbs.
The South Australian Government is offering the land across about 20 sites in its capital city, Adelaide, as it looks for ways to woo private investment to kick-start the ailing economy, replenish its coffers and halt rising unemployment.
Flinders University Business School Professor in Finance Sarath Delpachitra said there were substantial bargains to be made for foreign investors in South Australia compared to cities in the eastern states – particularly Melbourne and Sydney – where the property market was at its peak and would not make prolonged returns for property investors.
This should be the best time for investment in South Australia
The economic issues such as the winding down of manufacturing in South Australia, the closing of power stations and a downturn in mining had created negative investor sentiments and acted as potential barriers to investment.
“It gives an indication that the state is struggling but that shouldn’t be the case for commercial and residential investors. This should be the best time for investment in South Australia because the normal theme is ‘buy at low and sell at high’ and we are going through a difficult period,” Prof Delpachitra said…
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