by crawf » Sat Sep 23, 2006 2:02 pm
Jailbreak that sets free suburbs
RHIANNON HOYLE, REAL ESTATE EDITOR
September 23, 2006 12:15am
FOR years, their homes have lived in the shadow of prisons. Now, the residents of Northfield and Magill will be the centre of the state's newest boom suburbs.
The sale of Yatala Prison, Northfield Women's Prison and the Magill Youth Detention Centre, announced in this week's State Budget, will open up new land for the development of thousands of new homes.
This includes more than 3600 in the Northfield area.
The site of the two prisons and surrounding land, already owned by the Land Management Corporation, will be sold to developers.
The total site of 225ha will provide about 3680 allotments.
The addition of the Northfield land will boost the amount of government-owned land available for housing development in the metropolitan area to 300ha.
That is valued at about $200 million. Under the $500 million planned correctional services program, the Magill Youth Detention Centre also will be sold for a residential estate.
The demolition of the complex will free up 17ha of land but not all of it is useable because of creeks running through the site.
A government spokesperson said no estimates had been worked out for its value.
Urban Development Institute of SA president Peter Jackson said he was "sure there would be a number of developers keen to pick up the land". He said the announcement of a replacement site for both prisons – at Mobilong near Murray Bridge – was a positive move toward getting the land developed after years of discussions.
"The government has been talking for years about replacing the men's and women's prisons," he said.
"I think this might then be a step toward that.
"And if they are not going to use the land for its current use, then it is well suited for housing.
"It would fit in ideally with all the housing they have allowed to be developed around those areas."
The Northgate and Walkley Heights developments have swallowed much of the vacant land around Yatala over the past decade.
The median price for a vacant block in Northfield, where 27 allotments were sold last year, was $121,500.
In Magill, where 15 vacant blocks were sold, it was $195,000.
With land supply problems causing a stir across the city, Housing Industry Association state executive director Robert Harding was happy to see further residential land would become available within the metropolitan area.
"Bearing in mind both of those areas are reasonably well serviced by infrastructure, they won't face some of the problems faced by greenfield development," he said.
Despite the shortages in skilled labor, however, Mr Harding said he was sure there would be enough tradespeople to meet the requirements of both developments when brought to the market.
Northern suburbs real estate agent Sharon Norman described the plans as "very exciting".
She expected the values in Walkley Heights and Northfield to experience an immediate rise because of the Budget announcement.
"It's such fantastic news for everyone in the area," Ms Norman, of Ray White Northgate, said. "I think we will see an effect from this straight away."
She said potential buyers long had been reluctant to buy in the area because the future of the site was so uncertain. "People would always ask us what was going to happen; whether the jail was going to get moved," she said.
"We didn't know. But now it is so exciting – it's really going to happen.
"Now people can buy, safely knowing it won't be there in five years' time."