Just when we thought things couldn’t get any better for Property Investment in Adelaide, Prime Minister Anthony Albanese has announced that Australia will build a new fleet of eight nuclear-powered submarines in Adelaide to begin service in the 2040s that will cost up to $368 billion by 2055, effectively tripling the previously estimated infrastructure investment for the region.
South Australia will benefit directly from the program over the next 30 years, which will be a catalyst to transform South Australia toward technology and innovation-based economy, as well as creating tens of thousands of quality jobs and business opportunities for local businesses.
To put this into perspective, Queensland expects around 23 billion in infrastructure investment in the lead up to the 2032 Olympic games, Adelaide now has that same amount every 2 years for the next 30 years! In our book this makes Adelaide one of the best cities for property investment that we will experience in our lifetime and perhaps even in the history of Australia. Did I mention we’re excited!
Key points of the announcement include:
- The full cost of the deal is up to $368 billion over the next three decades and will require a significant expansion of the Osborne shipbuilding site and local skills base.
- In total, the government expects this project will create 20,000 jobs over the next 30 years including workers supporting AUKUS in the Australian Defence Force, domestic industry and the Australian public service, 4,000 jobs to design and build a new construction yard in SA, and another 4,000 to 5,500 workers will be needed to build nuclear-powered SSN AUKUS subs.
- Under the agreement, the federal government will inject $2 billion over the next four years for capacity and capability building. This will transform SA as the “home of Australian nuclear-powered submarine construction”.
- More jobs and higher incomes mean more demand for housing. Therefore, we predict that Adelaide property market will enter a new amazing growth phase over the next few years. The suburbs that are proximity to Port Adelaide will benefit most from the program in the short-term. In the long-term, Adelaide will transform as a destination of technology and innovation in Australia.
With the foresight of inSynergy’s industry-leading research, we’ve been helping our clients invest in Adelaide for the past 2 years and this announcement is the icing on the cake for those and any future investors in the region. If you’d like to know more about which Adelaide suburbs and properties are leading the growth and obtaining the highest rental returns, please get in touch for a no obligation chat.