serca wrote:Yeah no doubt there are some cities in the US that are shabby, I was there recently and your forgot to mention Austin, San Jose, San Fran, Seattle dare i mention New York and others that are booming with development. How about cities closer to home with similar population like Brisbane and Perth?? I realise they are resource rich, but something needs to change, we seem so reactive rather than proactive as a city in general.
I was responding to your claim that "I don't think this happens in most other developed cities the size of Adelaide." I have given you examples of some of the places I have actually visited and have enough knowledge about to rebut this claim, not ones I haven't been to.
Regarding Brisbane and Perth, both have much smaller footprints in their CBD size, and a much higher population growth level mostly because of the mining boom. I would foresee a lot less construction in those cities now that the mining boom has died. Look at Elizabeth Quay in Perth. It was mooted as the jewel in Perth's crown, but now that the state is in recession the project is on the verge of collapsing. So now almost the entire private developer part in the quay is now stalled.
serca wrote:I was not talking about vacant developments due to Chinese investors and you forget to mention the cashed up baby boomers, I was talking about developments not even getting off the ground period her in Adelaide. You look at the amount of private investment in Adelaide in the last 25 years and your happy with that??
Well, to build these buildings you need to have investors. If the projects interstate (and possibly here) are sold to these investors that are funnelling money outside their country of course the projects will go ahead. It's only the higher profile of Sydney and Melbourne that makes them more attractive to foreign buyers. The rental yield in those cities is shocking compared to the ones in Hobart and Adelaide, so clearly they are not in it for the rental return.
serca wrote:Stamp duty has aways been paid on apartments off the plan it was only ever a concession off the normal stamp duty depending on the amount purchased, and those grants ceased on the 19 of June 2016. They could do a lot more to help investment. Also the developers still had to pay stamp duty on the original purchase which like i said is up there with the highest in the world
The concessions were extended in last month's state budget. In fact, they are now available all over SA.
If the stamp duty on buying the land was so high, why would they buy the land and propose something in the first place? So clearly it is something not related to the initial land purchase cost. Do you have any figures to show that our stamp duty is the highest in the world?