Will There Be Life After Holden?
September 4, 2019
No doubt our readers will have heard of Holdens decision to no longer manufacture in Australia after 2017. This was announced just before Christmas.

Quite understandably this has caused a lot of angst in the community and we have seen a flurry of articles in the press and on TV trying to cope with the impact of this momentous decision.

Property owners will no doubt be wondering what effect this will have on the local housing market and in particular, prices.

Here are a few of my thoughts about this:

Once former Governments of both major political parties decided several years ago that Australia would become a part of the globalised economy, the writing has been on the wall for manufacturing in this country. The closure of Holden manufacturing is simply another result to come from these policies. Whether we approve or disapprove, we all have to face the present reality.

Whilst not in any way underestimating the devastating news for Holden and suppliers’ employees, we do have a four year window to put things in place to minimise the unemployment. Both State and Federal governments are considering various ideas to prepare for the future.

We are fortunate to have two very pro-business councils in the area; Salisbury and Playford. Both Councils are active in creating opportunities for new businesses to be established and thrive in a new environment.

The economy will recover. The population has not decreased. People still need somewhere to live, to work, to raise their families and so on.

With regard to housing prices, the GFC has already had a detrimental effect on local prices in the Northern suburbs where Holden has its manufacturing plant. Over the past 2-3 years we have seen prices reduce by 10% to 20%. Prices seem now to have stabilised. Whilst prices have softened, when you compare the current purchase price of a home and the rent achievable in the area, rental values are still holding their own.

In fact, in the present market, buying an investment property in the Northern suburbs of Adelaide makes a lot of sense.

At KHRE we are keeping a daily watch on all developments so that we are always in a position to make suggestions based upon our local knowledge and experience.