Huge amount of Port projects sparking significant buyer demand

A string of apartment and hotel developments in Port Adelaide are coming to fruition – and buyers are jumping on board.

Artist's impression of the $12 million W Apartments project at the site of the Colac Hotel in Port Adelaide. Supplied: Dominion Homes.

A major developer in Port Adelaide feels the area could be the next St Kilda, with significant projects underway and strong residential demand from younger buyers.

While for years the area has been touted as the next Fremantle, Dominion Homes co-owner Tony Luvera believed the feeling in the area was much more akin to Melbourne’s beachside suburb.

“Port Adelaide is really ramping up, there’s more foot traffic every day,” Mr Luvera said.

“It reminds me of St Kilda, because it’s drawing that younger, bohemian crowd.”

Mr Luvera’s company is behind a $12m apartment redevelopment of the former Labor Party-owned Colac Hotel.

He expected demand to be strong for the location, but even he was surprised at how quickly apartments were snapped up.

“All of the 14 apartments were sold in only seven days,” he said.

Mr Luvera said buyers were a mixture of investors and owner occupiers, but he said what really stood out was the age bracket buying.

The Colac Hotel in Port Adelaide pictured in 2015. Picture: Dave Cronin

Work underway on new apartments at the old Colac Hotel in Port Adelaide. Picture: Paula Thompson

“The demographic buying in the area is younger people, those in their 30s,” he said.

Dominion is also behind another nearby development – three-storey apartments on Divett Street, which are 80 per cent sold while still under construction.

Other Port Adelaide projects the company is working on including redevelopment of the Farmer Joes’ site, with a mixture of apartments and shops, and high-end townhouses along McLaren Parade, with rooftop areas.

“We’re very passionate about the area and it’s an exciting time to be working here. It’s just getting better every day,” Mr Luvera said.

Another major development down the Port is Dock One, which is made up of townhouses, apartments and boutique hotel accommodation.

More than 40 townhouses were recently sold as part of the project, with more coming onto the market in April or May this year.

Starfish development manager Ben Colmer said more than half of the buyers were owner/occupiers.

“Demand has been really strong, primarily from locals around Port Adelaide and across SA,” he said.

Concept shot of the floating water suites that will be part of the new MH Hotel development in Port Adelaide. Picture: Supplied

As well as the residential development, construction on Starfish’s MH Hotel, in the old Marine and Harbours building on St Vincent Street, will begin this year.

The project will involve the construction of 100 boutique hotel rooms, ground floor restaurant and a rooftop bar.

Mr Colmer said one of the standout aspects of the hotel project was the floating suites being built right on the water, offering unique accommodation in Port Adelaide.

CK Property Group is also planning a major accommodation development – the 182-room, $60m waterfront hotel Rydges on the Wharf Port Adelaide.

Detailed design and engineering of the hotel is currently being undertaken, with construction expected to begin during the third quarter of this year, and completion anticipated to be late 2022.

The project will also bring a new dining option to the Port with Rydges at the Wharf to feature a French-inspired restaurant to be named ‘Black Diamond’, in honour of the area’s history, with Black Diamond Corner for many years a notable Port Adelaide landmark.

Event Hospitality & Entertainment Limited (EVENT) has entered into a conditional management agreement with CK Property Group to run the hotel.

EVENT hospitality and entertainment director of hotels and resorts Norman Arundel said with the rapidly growing presence of defence sector in the area, he believed there would be strong demand for the hotel.

“We look forward to Rydges becoming an integral part of the local community,” he said.

Work has begun on another major development in the Port, the redevelopment of the old Globe Hotel, which has approval for work on the hotel including bars, beer garden, restaurant and meeting rooms. But further work has been halted pending approval for a 60 room residential hotel, which is before the State Commission Assessment Panel for planning approval.

The hotel will be integrated into the current plans, before work proceeds in earnest.

Port Adelaide Enfield Mayor Claire Boan said the range of eateries, bars and styles of homes being built in the area was helping to drive interest from a wide range of people wanting to call the Port home.

“We’re working alongside the developers to create fantastic spaces for our community,” she said.