AUKUS will need 24,500 new apartments for workforce

THE AUKUS defence project is forecast to deliver up to $40 billion in logistics, retail and housing infrastructure in Adelaide and Perth, new research shows.

A total of 24,500 residential units needs to be built to accommodate the nuclear submarine project’s 20,000-plus workforce, according to CBRE.

CBRE’s Unearthing Real Estate Opportunities from AUKUS report examines the direct and indirect economic benefits for the local property markets in proximity to Port Adelaide and South-West Perth where construction and operations for the nuclear-powered submarines project will be based.

The report estimates a total increase in demand of over 1 million sqm of logistics and retail space in the suburbs surrounding the Osbourne Shipyard in Adelaide and HMAS Stirling in Perth.

CBRE’s Pacific Head of Research Sameer Chopra said the increase in demand would create unique opportunities for real estate operators.

“Manufacturing of this type is very logistics intensive, creating a number of large-scale opportunities to re-develop real estate to support the infrastructure associated with AUKUS,” Mr Chopra said.

The report notes Australia will manufacture and operate the submarines close to major population centres, which differs from most European countries and the USA, which in turn creates unique opportunities for real estate operators.

In terms of increased residential demand, it’s forecast a total of 24,500 new apartments will be needed to accommodate the new workforce and subsequent population growth over the next six years.

“Ideally, new apartment construction is within easy commute of these emerging large scale employment destinations,” he said.

“This should also be supportive of residential values in close proximity suburbs.”