Sturt Street’s New Mayfield apartment development is expected to start construction in February, with increased interest following the federal election.
Sturt Land director David Bertram said with election over and interest rates at low levels, New Mayfield had seen encouraging results indicative of a solid uptake of quality apartments.
“Melbourne was diabolical up until six weeks ago, then all of a sudden interest rates dropped, the election came closer and things have taken off; Adelaide is experiencing a similar trajectory,” Sturt Land director David Bertram said.
“We had a twenty-fold increase of activity [in New Mayfield] since the election; it’s like someone turned the switch on.”
The development, one of Adelaide’s largest, was mired in controversy when it was approved last June with local residents concerned about the height of the buildings.
Sturt Land, which is a joint venture between Adelaide based Tagara and Melbourne developer Colvid, has planned for three apartment buildings of five, 10 and 14 storeys.
Apartments in the first building, of 10 storeys and 108 apartments, went on sale in July with 12 sold and about 25 on hold with prices ranging from $350,000 to $700,000.
Yesterday InDaily reported developments in the CBD were struggling to sell mid-range two-three bedroom apartments, with one bedroom and spacious apartments including penthouses selling well.
Despite the proliferation of large scale apartment developments in the CBD since the Government changed the planning laws, Bertram argued supply was not beyond demand.
“The market place wants apartment living – we have a vast number of 50+ year olds coming through and think it is a fantastic alternative to a retirement village, while young people also use it as an opportunity to get out of home as well as investor interest,” Bertram said.
The New Mayfield apartments will include an internal waste management system (meaning no reliance on council bins), retail space, a public square and free wifi.
Colvid is also involved with a Bowden development going through the planning approval stages which will comprise of about 35-37 apartments.
“Bowden will be interesting – it’s an underdeveloped area and the Urban Renewal Authority has bought up there and brought fruit to the area,” Bertram said.
He said it was unlikely any Bowden apartments would be competition for the CBD stock.
“[Bowden has] different population demands, a different population and it offers a different type of dwelling to that offered in the city.”
Since it was launched last year, Bowden has sold a total of 38 apartments and 25 terraces following product releases from six builder/developer groups.
The most recent release from Buildtec has seen significant interest with 50 per cent of apartments secured since August.
A spokesperson for the Bowden development said the most recent land release of four parcels of land had sold out.
The sites were bought by Commercial & General, Mossop and repeat purchaser Systembuilt, and will see approximately 12-18 months’ supply come onto the market, totalling approximately 150-180 apartments.
The next land release is expected in early 2014.
