Heritage Traps and the Affordability Squeeze

Local heritage listing frequently destroys value on properties that lack genuine character: demolition is prohibited, renovation is constrained, buyers won't pay a premium, and no government assistance offsets restoration costs. Examples include a 1960s North Adelaide house, a Kensington Road property where land and rebuild costs far exceeded the combined value, a Golden Grove building offered free with land to make a subdivision viable, and Riverland hand-painted wallpaper requiring an authorised artist at roughly $10,000 per crack. Heritage once featured as a selling point in advertising; it now deters buyers. Recent rental data shows Somerton Park up $50 per week and Glenelg North units up $30, with 11 suburbs falling. Rents continue rising while mortgage costs consume 55% of South Australian household income, above the historic 45% plateau, and construction costs keep pushing replacement values higher. Reduced investor competition benefits large existing portfolio holders. In large apartment developments, differentiated stock protects against valuations being dragged down by identical neighbouring sales.