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Discussion Starter · #1 ·
Found this article on S-A, very positive stuff! :)

South Australia in the limelight
HOTSPOTTING / RESIDENTIAL
Terry Ryder
May 19, 2007

A FEW months ago I ran a survey online asking property investors which city they most favoured. Brisbane was by far the most popular, followed by Melbourne, then Sydney and Perth.
Adelaide was nominated by only 9 per cent of respondents. This confirmed my suspicion that South Australia is the most underrated market in the nation.

But I'm picking that this will change. I see South Australia as the dark horse of the property market.

One reason is the ongoing strength in the resources sector and SA's efforts to grab a piece of that action. Others are the strong push by the state Government and the business sector to increase the state's importance as an economic contributor; the relative affordability of its real estate; low vacancies throughout the market; and signs of a lift in population growth.

Usually SA evokes a lukewarm assessment from property investors and economic commentators.

Phil Ruthven of IBIS World recently said SA ranked with Tasmania at the bottom of the pile in terms of GDP and household incomes, because of its high dependency on manufacturing (a low-paying industry and one under threat from imports) and the health industry (which has below-average wages).

Only 3 per cent of the SA economy is generated by mining -- compared with 12 per cent in Queensland, 26 per cent in the Northern Territory and 27 per cent in Western Australia, which all have stronger economies. This, however, is set to change for SA.

Another issue for the state has been the lack of impetus from population growth. Adelaide added fewer than 10,000 to its numbers last year (compared with Sydney, Melbourne, Brisbane and Perth, which all added between 30,000 and 50,000).

That, too, is set to change. Rod Cornish, Macquarie Bank head of property research, says Adelaide is starting to attract very strong overseas migration thanks to a government initiative to lift skilled migration.

While Western Australia and Queensland make resources boom headlines almost daily, SA is seldom noticed -- but may emerge as the rising force in this sector, with high levels of exploration activity under way, numerous new projects in the pipeline and a looming boost from heightened levels of uranium mining. The activity going on behind the scenes is substantial and should be watched.

Mineral exploration is at a 30-year high around Australia, with about $1.2 billion spent in 2006 -- double the spending of four years earlier. South Australia ranks behind WA and Queensland as the third most significant region for mineral exploration. Two years ago it ranked sixth, but current exploration levels in SA are now five times higher than in 2002.

Roxby Downs is SA's headline act in the resources sector. Olympic Dam has the world's largest known uranium deposit and the fifth largest copper mine. BHP Billiton plans to build a new open-pit mine 3km long and at least 350m deep to create the world's largest open-cut mine.

The $7 billion expansion will double the mine's copper production and treble its uranium output. It will also double the population of Roxby Downs, with an extra 3000 workers needed during construction. The Australian has described the mine expansion as "nothing short of a mini-city development".

But there's plenty more happening in SA. The Advertiser reported recently that SA had "quite extraordinary opportunities in terms of its geology" which have not been previously explored because sediment covered the ore bodies, making exploration difficult. Now they have the technology to see below the cover.

South Australian projects worth $12 billion are under way or in feasibility or scoping studies. They include: the Wilcherry Hill copper-gold-uranium project at Kimba on the Eyre Peninsula; a $530 million iron-copper-gold project 50km south of Coober Pedy; the new town of Prominent Hill, which is emerging in the SA desert to service the Oxiana open-cut copper and gold mine; Hillgrove Resources' copper mine near Mt Barker in the Adelaide Hills; Terramin Australia's Angas zinc-lead mine at Strathalbyn southeast of Adelaide; and the Honeymoon uranium deposit.

The state's Centre for Economic Studies says direct employment in the SA mining sector will more than double by 2010. University lecturer Peter Koulizos, known as the Property Professor, says recent decisions from the federal Government and the ALP national conference suggest uranium mining is being given the go-ahead and SA is well positioned to prosper.

"Forty per cent of the world's known uranium deposits are at Roxby Downs, so South Australia is looking really good," Koulizos says. "Exporting uranium will be huge for SA for the next 10-20 years.

"For too long SA has been the poor cousin to the rest of the Australian states. Finally resources are going to bring us to the fore. Mike Rann (the SA Premier) is very keen for mining companies to come in and is willing to spend billions of dollars on infrastructure to support the mining industry."

As we've seen in Perth, Darwin and many regional centres in WA and Queensland, all this activity is likely to create real estate mini-booms in SA, including the state capital. For every dollar spent by the mining industry, Koulizos says, four dollars goes into the economy.

Over recent years I've found Adelaide to be the enigma of the real estate market. It's considered a ho-hum venue by investors but in the recent boom its price growth outperformed Sydney and Melbourne.

Many analysts have identified an oversupply of housing but Adelaide consistently reports the lowest residential vacancy rate among the big cities.

Adelaide remains one of the cheapest capital cities to buy houses and the cheapest for apartments, therefore offering accessible real estate at a time of low affordability.

There has been an uplift in activity since the start of the year: sales of new homes in SA in the three months to February were 8 per cent higher than in the preceding three months.

PRD Nationwide Research says in a recent report: "In the December quarter the Adelaide market has recorded its highest growth figures since December 2003, with annual growth of 6.4 per cent and the latest quarter's growth at 2.6 per cent.

"House prices in Adelaide are still affordable compared to many of the other capital city markets around Australia. This fact, together with the ongoing minerals exploration occurring in the state, places Adelaide as a city to watch over the coming year."
 

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Galactic Ruler
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LOL the dark horse that's running its own race. The fact is not many people give a toss over SA. It might be affordable but there is a reason for this ... there is little demand.

Good to hear positive stuff though, who knows what the fututre holds. I was amazed at the cheap prices of rentals and properties in Melbourne, even in Toorak so I can imagine what Adelaide is like. Sydney is so overpriced :(
 

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LOL the dark horse that's running its own race. The fact is not many people give a toss over SA. It might be affordable but there is a reason for this ... there is little demand.

Good to hear positive stuff though, who knows what the fututre holds. I was amazed at the cheap prices of rentals and properties in Melbourne, even in Toorak so I can imagine what Adelaide is like. Sydney is so overpriced :(
Because life is oh so good for people in Sydney who have a net worth under 5 million... :eek:hno: Unless you are well off you would probably have a better life if you lived in Adelaide... or Brisbane... or Melbourne... or Perth...
 

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Because life is oh so good for people in Sydney who have a net worth under 5 million... :eek:hno: Unless you are well off you would probably have a better life if you lived in Adelaide... or Brisbane... or Melbourne... or Perth...
This is such tabloid bullshit.

There are plenty of people on very average wages who are living comfortably.
 

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Galactic Ruler
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You might be right in saying that many would have a better life in a less expensive city but it depends what you want in a city, I'd never move to Adelaide. Melbourne I could only do for a while. Perth hmmm don't know. Brisbane is warmer and that's a start but its still not got what I want. Sydney has most of what i enjoy and some of it can't be had elsewhere. I guess that's the price that has to be paid as shit as it is.

Many people are doing fine and to some it may be a struggle, but its worth it. I can't say I know anyone that would willingly move to SA. Most would rather die.
 

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When exactly is this mining boom going start? I keep hearing about how imminent it is but it hasn't started yet? Also i'm presuming there is more than just uranium as the base for this boom? While uranium is quite expensive at the moment I doubt you could compare the uranium market to that of the iron ore market.
 

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Galactic Ruler
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there are big limitation set of where we export uranium oxide to as well. It is a very limited market currently. If SA really wants ot get ahead they should fast track construction of nuclear plants, reprocessing facilities, enrichment and storage and get over themselves. Its a great market and one to take on.
 

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Discussion Starter · #8 ·
LOL the dark horse that's running its own race. The fact is not many people give a toss over SA. It might be affordable but there is a reason for this ... there is little demand.
South Australia ranks behind WA and Queensland as the third most significant region for mineral exploration. Two years ago it ranked sixth, but current exploration levels in SA are now five times higher than in 2002.
I find that a bit amusing especially coming from a person from a state (pop of 6.7m) which is on par with SA (pop of 1.5m) for economic and population growth plus is currently going through tough times...

Don't give a toss eh?, funny that many interstate and international companies are exploring all around SA for mining and quite alot of people from interstate are investing in SA properties because there set to jump. ;)

After years of decline, SA is going to be the dark horse. There is so much going on here but not many people (locals & interstate) know about, really most of the attention lately has been focused on Roxby Downs and not much else.

Roxby Downs is going to play a major part, but there is many other projects that are going to drive SA into prosperity.
 

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Discussion Starter · #9 · (Edited)
When exactly is this mining boom going start? I keep hearing about how imminent it is but it hasn't started yet? Also i'm presuming there is more than just uranium as the base for this boom? While uranium is quite expensive at the moment I doubt you could compare the uranium market to that of the iron ore market.
As I said on a another thread most of the action will been seen next decade. The defense sector, gold, zinc and many other minerals will play a major roll in the boom... But mine construction has already started at Strathaybln and near Coober Pedy and a few other mines are about to start construction

You got to remember that the old 'no new mines' policy was axed only a few weeks ago and SA only won the $6b air warfare contract 2 years ago.

Though this boom is getting more attention by the day from media outlets to professionals.

SA was recently listed 4th for mining potential in the world, by a international agency. The SA Government wants this boom to go ahead, but there is still a few hurdles (such as environment impact)
 

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Galactic Ruler
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I cant help it i am a bully when it comes to South Australia. It's the state everyone loves to hate, for no fault of its own. ;)
 

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Discussion Starter · #11 · (Edited)
Scanned by Rev a few weeks ago...


Press Release - Mining Boom Continues To Sour

Avator said:
I'd never move to Adelaide.

Many people are doing fine and to some it may be a struggle, but its worth it. I can't say I know anyone that would willingly move to SA. Most would rather die.
Have you even been to Adelaide?, You know what that would not surprise me - Adelaide and SA has a shocking reputation and is usual the first place to be bagged (usually from people you have never really experienced Adelaide). Many international visitors are shocked when they come to Adelaide and find the place not as a boring backwater (as quite alot of interstaters claim it to be).

One of the main attacks on Adelaide used to be its main entrances which used to be a death trap (Princes Highway), outdated 3rd world airport terminal and bus station.

Now the death trap has been replaced with a brilliant scenic 6lane freeway with tunnels (which is a now a great entrance into Adelaide), the new terminal is something to be proud of and so much better than the old one and the new Bus Terminal is set to be completed by September, which will be so much better than that piece of shit they currently call the states main bus station. Keswick Interstate Train Terminal Precinct is set for makeover aswell (which is pretty dodgy aswell).
 

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Discussion Starter · #12 · (Edited)
More detailed view...




That map really shows that so much is happening in SA (compared to 6 years ago), I find that pretty interesting...
 

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Maybe SA needs to specialise in a particular technological field, say biotechnology. Mining is a lucrative industry, but the miners I've met aren't exactly the type of people you would want to attract to a dynamic, growing, cosmopolitan city.

To be honest, very little attention is paid to SA in the eastern states. The external view is that is "conservative, has elements still of wowserism, slightly backward, isolated but produces great wine." I have never been to Adelaide, but friends that have moved from Adelaide think it is dull and conformist with little opportunity for career growth. Not sure what the government can do to atract more people into the state??
 

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Perthite
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everything seems to be so optimistic in SA, i don't know if this is just me though :). QLD and WA are the big resource players. Back off SA :lol:
 

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Discussion Starter · #15 · (Edited)
Maybe SA needs to specialise in a particular technological field, say biotechnology. Mining is a lucrative industry, but the miners I've met aren't exactly the type of people you would want to attract to a dynamic, growing, cosmopolitan city.
I think SA is doing some biotechnology stuff (but I'm not 100% sure), though another big thing is the hot rocks project in the SA outback. Most of these miners probably will live in the mining towns, not Adelaide. Adelaide will get the flown on effects which suites me because I would rather see SA build up its regional towns.

To be honest, very little attention is paid to SA in the eastern states. The external view is that is "conservative, has elements still of wowserism, slightly backward, isolated but produces great wine." I have never been to Adelaide, but friends that have moved from Adelaide think it is dull and conformist with little opportunity for career growth. Not sure what the government can do to atract more people into the state??
Thats the typical attitude that has been sending SA backwards, yet many of those people move back to Adelaide after realising the place isnt that bad after all and theres better living options compared to a few years ago...

The SA Government is doing quite alot such as attracting international students and residents (which is really giving SA a boast), luring foreign universities to Adelaide, attracting more tourists (new airport terminal, new tourism campaign and logo/slogan, hosted the Australian Tourism Exchange last year first time ever), approving major projects left right and centre (latest the LeCornu site development which has been vacant for nearly 20 years!!), luring mining and defense companies to set up shop here, improving roads (such as South Road), creating a year round calander of festivals and events (such as making the popular Adelaide Fringe a annual event and creating the Adelaide International Guitar Festival) and the big one revitalising the CBD which includes Victoria Park Redevelopment, North Tce Redevelopment, tram line extension to North Tce with further plans to extend it back to Vic Square (creating a western loop), East End, North Adelaide, Norwood, Port Adelaide etc... - www.transport.sa.gov.au/tramextension/

:cheers:
 

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So much talk about South Australia and what it could be. WA and QLD are already there though. Thats why nobody cares whats happening with SA at the moment.
 

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South Australia was a quiet, conservative state (which had a lot to do with its religiously-devout human stock) until Playford took over and turned it into an economic beast. Dunstan took over, ruined the economic machine, but gave South Australians a decade of being a social hotpot.

Since then, what? It's a mess. It's half conservative / half radical. Optimistic / pessimistic.

We wait.
 

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Maybe SA needs to specialise in a particular technological field, say biotechnology. Mining is a lucrative industry, but the miners I've met aren't exactly the type of people you would want to attract to a dynamic, growing, cosmopolitan city.

To be honest, very little attention is paid to SA in the eastern states. The external view is that is "conservative, has elements still of wowserism, slightly backward, isolated but produces great wine." I have never been to Adelaide, but friends that have moved from Adelaide think it is dull and conformist with little opportunity for career growth. Not sure what the government can do to atract more people into the state??
Conservative and conformist are two word that shouldn't be used to describe Adelaide and SA, and are very superficial assessments of Adelaide and its people, Adelaide's true nature is that of an innovative and progressive city and people. So many social/legal and political firsts occured in Adelaide/SA, and many of our laws (drug laws for instance) are far more liberal than other states:
Eg:
First state to grant Aborigonal suffarage (pre federation), Woman's sufferage, first parliment in the WORLD to allow elected female members, First legal Nudist beach in Australia. first state to legalise abortion (1969) (and many more)
Let's not forget which city has Australia's largest Art's fetival (Adelaide) and which city arguably pioneered modern arts in Australia...
 

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South Australia was a quiet, conservative state (which had a lot to do with its religiously-devout human stock) until Playford took over and turned it into an economic beast. Dunstan took over, ruined the economic machine, but gave South Australians a decade of being a social hotpot.

Since then, what? It's a mess. It's half conservative / half radical. Optimistic / pessimistic.

We wait.
Another thing that needs to be addressed is the whole concept of Adelaide "the city of churches" This term originally came about not because of the number of churches, but the number of different denominations in Adelaide, because of the coloines political/religous freedoms that were far ahead of its time
 

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Discussion Starter · #20 · (Edited)
Another thing that needs to be addressed is the whole concept of Adelaide "the city of churches" This term originally came about not because of the number of churches, but the number of different denominations in Adelaide, because of the coloines political/religous freedoms that were far ahead of its time
That tagline has been done to death, these days the only people who usually use it is people from interstate (jealously perhaps?)

I hate when people use it, its a very old term that does not represent anything about Adelaide.
 
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