How Adelaide’s commercial market has fared during the coronavirus pandemic: HTW

With the current restrictions surrounding property inspections and auctions still in place, the volume of commercial property sales have dropped in Adelaide, according to the latest report from valuation firm Herron Todd White.

The April Month-in-Review report found that throughout March and April of 2019 there were 15 sales of industrial properties in the Adelaide metropolitan area, compared to the ten sales recorded in this period for 2020.

“Whilst these are not exact figures of sales volumes, they provide a basic indicator that volumes of sales have dropped and we don’t expect investors, owner-occupiers or potential tenants rushing into the market at this point,” the firm said.

The success of South Australia in curbing the spread of COVID19 has created optimism that it could be one of the first areas to be reopened economically.

“All data aside, there is one major common feeling amongst property professionals and that is that the industrial supply chain to and from China will evolve as a result of the Coronavirus,” the report continued.

“Some view that the outbreak has accelerated a movement to become less reliant on China and create alternative industrial hubs around the world. There is already evidence of this occurring in Mexico (automobile industry) and Ethiopia (textile industry).”

“Whilst Australia may not return to its manufacturing roots of major automotive brands, post the Coronavirus we may see a revival of more meaningful levels of manufacturing or inclusion of manufacturing previously done off-shore.”

“At this point however, the local industrial market just desires a return to normality,” the report concluded.