House prices in most parts of Australia, including South Australia, have been steadily rising over the last 12months. While over the same period the mining sector, construction industry, retail sales and other sectors of the economy generally have experienced falling prices and sales. Therefore it is probably no coincidence that I have noticed an increase in interest in undertaking feasibility studies to look at what can be done to rationalise existing land uses and/or proposals to subdivide land.
Feasibility studies have included interstate businesses requesting an inspection and report on the suitability of a specific premises in Adelaide to expand their businesses into Adelaide. Alternatively a major car dealer in Adelaide who own numerous metropolitan and regional new and used car sales yards, service and distribution centres have wanted to rationalise their land holdings. The rationalisation of the operation was to dispose of under-utilised land so they could expand in a more target manner with a centralised holding, preparation and distribution centre for vehicles. This project was a fascinating examination of how a successful business operates and yet could be streamlined to facilitate future expansion.
In addition to feasibility studies we have experienced a large increase in the number of people wishing to subdivide land they own or have purchased. Some proposals have involved numerous allotments. However what I find interesting is that a lot of the proposals are dividing one allotment into two. Or often retaining an existing dwelling and dividing the land to building a second dwelling.
These anecdotal observations I cannot help feel are a reflection of sluggish economic times but where car sales and house prices have continued to increase.