FRP Capital Brickworks Information Memorandum July 2023 - Flipbook - Page 17
Brickworks Marketplace
Information Memorandum
Adelaide
Market Analysis
South Australian
Economic Drivers
ADELAIDE IS THE MOST
LIVEABLE CITY IN AUSTRALIA
DEFENCE
South Australia continues to prove itself as a leading
force in defence manufacturing, with the state’s defence
industry experiencing a surge in growth. Data released by
the Australian Bureau of Statistics shows South Australia
contributed almost $1.2 billion to the economy in 2020-21,
growing by 11 per cent from the previous year – the highest
rate of growth of mainland states and largest contribution
per capita of all states. As well as having a positive impact
on the broader SA economy, this also positively impacts the
commercial property market in Adelaide.
The Economist Intelligence Unit (EIU) undertakes an annual
liveability survey on major cities around the world. The
survey provides a composite score on the liveability of
global cities on five main categories – Stability, Healthcare,
Culture & Environment, Education, and Infrastructure. In the
2021 index, Adelaide ranked the third most liveable city in
the world, ahead of every other Australian city. The city has
maintained a top-10 ranking consecutively since 2015.
INFRASTRUCTURE TO SUPPORT ECONOMIC
AND POPULATION GROWTH IN ADELAIDE
AEROSPACE
South Australia’s largest infrastructure project, the
North-South transport corridor, will be significant for
connectivity of the Adelaide metro area. Upon estimated
completion in 2033, the roadway will provide 78 kilometres
of motorway between Gawler in Adelaide’s northern
suburbs and Old Noarlunga in Adelaide’s southern suburbs.
With the northern stages of the road network now
complete, funding has been secured from The
Government of South Australia and The Australian Federal
Government to move forward on the final stages of the
project, located in the southern suburbs. The final phase
is the $2.26 billion Torrens to Darlington (T2D) Southern
Tunnel project, linking Anzac Highway to Darlington.
This major project is expected to stimulate economic
growth in Adelaide’s southern suburbs through business
creation and expansion. Stronger linkages to the major
freight hubs of Port Adelaide and Adelaide Airport will
support industrial occupier activity in the area.
Additionally, improved commuter times to the CBD and
inner suburban employment areas is expected to support
population growth.
16
TECHNOLOGY / CYBERSECURITY
Technology and Cybersecurity, with its digital linkages to
the Defence sector, is an emerging employment sector in
Adelaide with positive implications for the commercial office
sector. The industry is currently centred on Lot Fourteen,
the technology hub and innovation precinct in development
at the former Royal Adelaide Hospital site in the north-east
corner of the Adelaide CBD. However, it is expected that the
expansion of the cybersecurity sector will generate positive
net absorption in the broader Adelaide office market. During
recent times, major global technology firms have either
established offices in Adelaide or significantly expanded
operations to accommodate growth in the technology and
cybersecurity sector.
This will be further supported by the new trilateral security
alliance – Australia, United Kingdom, United States (AUKUS)
– which is expected to increase cooperation in areas
such as cybersecurity, artificial intelligence and quantum
technologies.
The below multinational tech businesses have recently
expanded into Adelaide:
Aerospace is also an important growth sector that is deeply
inter-related with the Defence sector. The Australian Federal
Government announced in December 2018 that Adelaide
was to be the location of the newly established Australian
Space Agency (ASA). The expected future clustering of
aerospace technology research and development and
knowledge will be centred on Lot Fourteen (the redeveloped
former Royal Adelaide Hospital site in the north-east corner
of the CBD where the ASA is based), providing proximity to
government officials and access to highly skilled human
capital, courtesy of two city-based universities.
The Australian Federal Government has committed
$41 million to ASA through 2022 with the goal of tripling
Australia’s space economy to $12.0 billion and doubling
the sector workforce to 20,000 by 2030. The potential for
SA to capture the majority of this growth is very strong,
underpinned by the interconnection with the long-standing
defence technology cluster in the state.
Note: Sourced from JLL Research, South Australia Investment Case 2022.
