Nuclear-powered submarines deal tipped to spark property boom

Leading real estate agents say property prices will skyrocket on the Lefevre Peninsula following the announcement nuclear-powered submarines would be built at Osborne.

The Lefevre Peninsula’s property market is tipped to boom on the back of the Federal Government’s announcement that nuclear-powered submarines would be built in Adelaide.

Real estate agents say demand and prices will skyrocket in suburbs between North Haven and West Lakes as industry workers endeavour to secure a property close to a new submarine shipyard to be built at Osborne.

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Property prices are tipped to jump in Osborne on the back of the nuclear submarines deal. Picture: realestate.com.au

Ray White Port Adelaide principal Nick Psarros said people were already buying in the area in anticipation of the deal being made between Australia, the US and the UK.

“A lot of savvy investors who have their ears to the ground, they’re already buying,” he said.

“It’s going to lead to quite a demand and great prices as a result of that.

“Anywhere from say West Lakes to North Haven is going to be absolute excellent buying.

“Anything in Osborne, Taperoo, North Haven, it’s going to go off.”

Australia will spend up to $368bn to deliver the nuclear submarine program, which will feature at least three boats bought from the US, upgrades to extend the life of an existing fleet and eight homemade nuclear subs hitting the water from the 2040s.

Mr Psarros said excitement in the area as a result of the deal would attract more people.

Ray White Port Adelaide principal Nick Psarros. Picture: Dylan Coker.

While he couldn’t predict how much property prices would increase, Mr Psarros believed the growth would far outpace that expected for metropolitan Adelaide over the same period.

Harcourts Smith director Kate Smith echoed Mr Psarros’ comments, explaining interest in the area was already picking up before the deal was announced as it was on the coast and affordable.

“If anything, the deal will cement that interest,” she said.

“Take inquiries from interstate – property in the area has become more and more in demand and I think this will cement it even further.

“I don’t know why you’d live anywhere else, we’re 15 minutes from the CBD and near the beach.”

The Peninsula has already recorded strong growth over the past five years.

According to latest PropTrack data, houses in Semaphore South have had the most price growth, climbing 107 per cent to a median of $1.29m.

Harcourts Smith director Kate Smith. Picture: supplied.

Meanwhile, North Haven unit prices jumped 68 per cent over the past five years to a median of $587,500, while Osborne houses increased 57 per cent to $580,000.

While Ms Smith believed interest in the area would have continued to grow even without the deal, North Haven, Taperoo and Osborne would be in more demand than ever going forward.

“You’re literally right next door to where the submarine building is going to be,” she said.

Mr Smith said rental properties in the area would also be in high demand.

Top 10 growth suburbs in and around the Lefevre Peninsula

(Suburb, property type, number sold over the past year, median price, change in median over past year, change in median over past five years)

Semaphore South – H, 13, $1.29 million, 57.3 per cent, 106.7 per cent

Pennington – H, 45, $687,000, 29.4 per cent, 71.8 per cent

North Haven – U, 16, $587,500, 30 per cent, 67.9 per cent

Glanville – H, 14, $688,500, 44 per cent, 63.9 per cent

Birkenhead – H, 29, $653,000, 18.7 per cent, 63.7 per cent

Peterhead – H, 25, $645,000, 41.8 per cent, 61.3 per cent

Alberton – H, 23, $752,000, 31.7 per cent, 60 per cent

Osborne – H, 34, $580,000, 23.3 per cent, 56.8 per cent

West Lakes Shore – H, 51, $956,000, 12.3 per cent, 51.7 per cent

Semaphore Park – H, 77, $756,000, 21.7 per cent, 48.2 per cent

Source: PropTrack