‘Land locked’ – Property Council urges Malinauskas Government to take further action on industrial land supply.
A new report has called on the Malinauskas Government to establish a minimum $250 million fund to fast track the annual release of at least 25 hectares of development-ready industrial land in Greater Adelaide, as it is revealed the city’s available development-ready industrial land supply could be exhausted in just over two years.
The report by JLL and AsiaAustralis, commissioned by the Property Council, estimates that of the 1,500 hectares of vacant industrial land identified in the 2021 Plan SA ‘Land Supply Report for Greater Adelaide’, over 90 per cent is no longer available or is not considered development-ready.
Property Council’s South Australian Executive Director, Mr. Bruce Djite said the report highlights the economic importance of preserving and supplying industrial land at a time when policy makers are naturally focused on addressing the housing crisis.
“Every hectare of industrial land developed supports approximately 90 jobs and generates $13.5m of Gross State Product, and while it is right that the government is focused on housing and where people will live, it must also plan for jobs and where they will work,” Mr. Djite said.
“Since 2020, average industrial land values in Adelaide’s Outer North for example have grown faster than anywhere in Australia, underpinned by population growth and the demand for warehousing and logistics space that exploded during the pandemic on top of an already dwindling supply of readily developable land.
“Despite our relatively smaller population, Adelaide’s industrial space requirement per new resident is now on par with Australia’s fastest growing city – Melbourne – and is higher than Perth’s.
“Adelaide needs over 100,000 sqm of warehouse space per annum to 2030 considering the trajectory of consumption and retail trade growth.
“For every direct job on-site in an industrial precinct there are 2.07 jobs created elsewhere in the economy, highlighting the importance of preserving land for this critical asset class.
“With active consideration of the Greater Adelaide Regional Plan underway, the Property Council is calling on those charged with shaping our city to safeguard critical last-mile and industrial precincts and provision for the growth of future industries in locations such as Mile End, Thebarton and Torrensvile as well as Edinburgh Parks and Port Stanvac.”
The Property Council welcomes and commends the State Government for its recent decision to initiate three proposed Code Amendments to rezone 120 hectares at Waterloo Corner, as well as initiating conversations regarding the future of Port Stanvac. This report makes seven recommendations to the State Government to mitigate the more fundamental issues of industrial land supply in Adelaide.
These recommendations are:
1. Land release targets: Commit to the annual release of 25 hectares of serviced industrial land in Greater Adelaide.
2. Funding to unlock industrial land: Establish a minimum $250m fund to enable Renewal SA to fast-track industrial projects by delivering enabling infrastructure and supporting land preparation and remediation.
3. Fast tracking: Implement a fee structure to support fast-tracked development applications and code amendments.
4. Improve service efficiency: Expand the remit of HIPDU and resource it appropriately to create a coordination team to facilitate future water, electricity and power service planning between utility companies and the private development sector for industrial projects.
5. Servicing flexibility: Consider alternative strategies to servicing sites with utilities until permanent alternative methods can be established.
6. Protect key industrial precincts: Ensure that the Greater Adelaide Regional Plan protects key industrial precincts and plans for new ones with connectivity to housing and freight infrastructure.
7. State Government Guidance: Provide guidance to local government and the private sector on how to identify, assess and rezone employment precincts through the development of a real-time industrial land availability tracker.
