Adelaide most competitive place to do business

The Steggles factory expansion + lots of jobs 5 mins from Holden factory hardly made a blip except local news.

All people focus on is HOLDEN IS CLOSING WHAT WILL THAT DO TO HOUSE PRICES IN ELIZABETH. Which is broadly nothing... Holden workers earned good money and rented or owned in much better areas.

 

Joel please, let's not let facts get in the way of a good story.

 

Im very late to the thread but I assume it's been pointed out that Adelaide being named most cost competitive (ie cheapest) place to do business as the article says is quite different to being named the most competitive as the thread title says?

I don't doubt there are probably great opportunities there for those bothered enough to consider them without big city bias, as there was in Perth prior to the mining boom, often smaller cities are starved of quality competition for the incumbents in many a sector and the combination of much lower overheads, comparative ease of finding staff (depending on the business of course) and a local market often underserved previously can add up to lots of opportunities

 

Not just Elizabeth, i own property in the Salisbury LGA. If I had a dollar for every time i have been asked "has the value of your houses crashed yet!?"

 

Good points, what would you buy as an investment to try capturing that opportunity? I do like Adelaide as a potential investment, still looking at what's best (commercial or resi, what type, etc).

 

You do have to remember a growing population means a need to create more jobs everyday just to sustain the same rates of employment/unemployment. i.e. New jobs are expected.

Thats why a big loss of jobs can be seen negatively, especially if it represents a trend.

 

Yes, and this is why I like Sydney, Melbourne, and Brisbane. They are sufficiently diversified (and not disproportionately reliant on any one industry) and also big enough (at current pop size and Job's numbers).. And all of them also have a growing population, and expected to increase the future. With that as a base, future pop growth should be met with more jobs.

 

From the UK Telegraph, Adelaide the new Portland:

All hail Adelaide: How the Australian city became 'the new Portland'

 

Brisbane has same reliance on mining as Adelaide does on manufacturing, so hearing about some companies moving here is a good thing.

 

Im skeptical. Where are the stats for this?

 

I'm also a bit sceptical about this...the manufacturing sector and it's flow on industry has a greater impact on Adelaide than the mining industry and it flow on industry in Brisbane.
About 7-10 years ago, I would have somewhat agreed..since then, there has been significantly more non mining in Brisbane than the corresponding non manufacturing in Adelaide.

 

I have invested heavily into the residential markets in Adelaide,and will continue to do so ,i have also started taking a keen interest in the commercial properties, there are some very good deals around.

 

From the Courier, SA making inroads into Indonesia:

http://www.couriermail.com.au/news/...a/news-story/752287f04c2e98b85f62e0e903bd9212

 

Head of research with CoreLogic RP Data, Tim Lawless:

“It does look like this (Adelaide) marketplace is strikingly resilient in the face of some economic hardship.”

Adelaide’s house prices are rising, albeit more slowly than interstate - realestate.com.au

 

Slow and Steady wins the race.

 

Neither agreeing or disagreeing with this point, but yes the flow on effect is huge and i believe is poorly understood by the average Joe punter. Case in point:

from 2001 to 2012, Holden had generated $32.7 billion of economic activity and paid $21 billion to other companies while receiving $1.8 billion in subsidies.

As Quoted from the Conversation:
Is supporting the car industry so expensive, compared to our heavily subsidised lives?

as Kim Carr noted recently, the industry, cumulatively, received subsidies amounting to less than $18 per person over the last decade. So it cost you, the long-suffering Australian taxpayer, the princely sum of $1.80 per annum to prevent the collapse of plants like Elizabeth, Fishermans Bend, Altona, Geelong and Broadmeadows.

You. Are. Subsidised.
Think this $18-per-capita car subsidy is too much? Think again.
You — yes, you — subsidise the banks to the tune of $763 per annum, plus all the fees and charges they generously impose upon you. Not quite the chunk of change ($83 billion) the US government affords its banks in subsidies, but still.
And the mining industry doesn’t have clean hands either. They get at least $4 billion per annum. Queensland alone spends $1.4 billion in subsidies.
Let’s be clear about this: virtually every industry in Australia is subsidised, directly or indirectly, via government hand-outs.

 

I don't know about how widespread the subsidies are by govt.. Wouldn't be surprised.. Industry in Australia of mist types are uncompetitive globally so there would likely be some kind of government intervention.

 

As pasted from the Courier Oct 16

[QUOTE="JDP1, post: 383640, member: 489"]I'm also a bit sceptical about this...[/QUOTE]

BRISBANE has been declared Queensland’s biggest mining town after an analysis from the Queensland Resources Council showed the city last year had a $27 billion benefit from the industry.
The industry generated $55.7 billion in Queensland in 2015-16 and claimed it was responsible for one in every five dollars generated in the eco-nomy.
It also paid out $2.2 billion in royalties.
“It contributed a quarter of the city’s (Brisbane) economic product,’’ QRC chief executive Michael Roche said.
“That’s enough to pay the wages for 36,000 teachers. It would pay for 32,000 police or 30,000 nurses. That’s what $2.2 billion pays for.’’
In Brisbane, the resources sector supported about 133,000 jobs, a fifth of the total workforce.
The analysis comes as the industry is put under increasing pressure to justify its existence from an environmental lobby that has become a powerful enemy.

 

BRISBANE has been declared Queensland’s biggest mining town after an analysis from the Queensland Resources Council showed the city last year had a $27 billion benefit from the industry.
The industry generated $55.7 billion in Queensland in 2015-16 and claimed it was responsible for one in every five dollars generated in the eco-nomy.
It also paid out $2.2 billion in royalties.
“It contributed a quarter of the city’s (Brisbane) economic product,’’ QRC chief executive Michael Roche said.
“That’s enough to pay the wages for 36,000 teachers. It would pay for 32,000 police or 30,000 nurses. That’s what $2.2 billion pays for.’’
In Brisbane, the resources sector supported about 133,000 jobs, a fifth of the total workforce.
The analysis comes as the industry is put under increasing pressure to justify its existence from an environmental lobby that has become a powerful enemy.[/QUOTE]

What they mean by that is not that Brisbane is dependent on mining, rather that they get a disproportionately high amount of $ from what is mined up north. Hence why there was some talk recently about the north splitting up with Brisbane, hence why indusygroups are not too happy...places like Townsville and McKay would certainly like to see some of the money that Brisbane gets. The rationale is that places like McKay supports the miners and the industry on the ground a lot more than Brisbane and thus they should get more.

 

BRISBANE has been declared Queensland’s biggest mining town after an analysis from the Queensland Resources Council showed the city last year had a $27 billion benefit from the industry.
The industry generated $55.7 billion in Queensland in 2015-16 and claimed it was responsible for one in every five dollars generated in the eco-nomy.
It also paid out $2.2 billion in royalties.
“It contributed a quarter of the city’s (Brisbane) economic product,’’ QRC chief executive Michael Roche said.
“That’s enough to pay the wages for 36,000 teachers. It would pay for 32,000 police or 30,000 nurses. That’s what $2.2 billion pays for.’’
In Brisbane, the resources sector supported about 133,000 jobs, a fifth of the total workforce.
The analysis comes as the industry is put under increasing pressure to justify its existence from an environmental lobby that has become a powerful enemy.[/QUOTE]

QRC, good independent source of data I'm sure...
Anyway back to Adelaide, from a distance this part of Salisbury LGA is holding up quite nicely IMO.

Can I humbly say I think I might have picked the bottom here.. and jumped in after prices flat lined for about 5 years prior to 2015/6.
Really solid yield over 6%, plenty of tenants, surprisingly low holding costs and therefore cashflow neutral.

Whats not to like..