Last week we touched on what to look for when selecting a location to invest in. Proximity to amenities (shopping, transport, education, healthcare etc), distance to the CBD plus future planned infrastructure are all vital factors to consider. We here at Robson and Robson Property are consistently conducting due diligence on potential investment opportunities for our marketplace and we’ve selected this as a growth area with immediate returns.
Between 2000 and 2015, the Primary Catchment’s total population increased by an impressive 60%, from 19,096 to 30,462 people. This figure is projected to increase by a further 36% between 2015 and 2036 – a projected increase of 11,000 people in just over 20 years. Comparatively, the Redland LGA and Brisbane LGA have both been earmarked to achieve a lesser, 23% increase in total population, between 2015 and 2036.
Overall, the growth earmarked for the Primary Catchment region will have a considerable impact on the local housing market.
Based on the conservative assumption that the number of persons per dwelling was to remain stagnant, this growth in population would create demand for an additional 3,827 residential dwellings to be built within the Primary Catchment by 2036.
Queen’s Wharf is a world-class tourism, leisure and entertainment precinct in the heart of the Brisbane CBD. The benefits of Queen’s Wharf to Brisbane include, $272 Million in payments to the State, a guarantee of $880 Million in casino taxes for the first ten years of operations, $1.69 billion annual increase in tourism and $4 billion to the Gross State Product.
BRISBANE AIRPORT UPGRADES
The Brisbane Airport Corporation currently has more than 100 construction and development projects on site or in planning. Furthermore, BAC has delivered approximately $1 billion worth
of infrastructure since 2009 with a further $3.8 billion earmarked for investment in major projects over the next decade. Australia’s biggest aviation project, the $1.35 billion New Parallel Runway is under construction, with plans underway for a new Regional Satellite Terminal, new aircraft aprons and taxiways, more car parks, two new hotels and a Brisbane Airport Conference Centre.
HOWARD SMITH WHARVES REVITALISATION
The 3.43 hectare site will be transformed into a riverside precinct with more than 2.7 hectares of public open space, a 164 room hotel, a 1,500m² exhibition centre and restaurants and cafes. The
redevelopment of the area is expected to connect the New Farm Riverwalk and the Brisbane CBD, whilst revitalising Petrie Bight and respecting the heritage of the site.
The Toondah Harbour masterplan proposes a $1.3 Billion development of the existing precinct. The renewal is expected to see the area evolve into a tourism, residential and dining hub with four
times the current parkland and open space. The project, built next to Moreton Bay Marine Park, has been referred to the Commonwealth Government for assessment under the Environmental Protection and Biodiversity Act. The 15 to 20-year project is expected to provide about 1,000 jobs during construction.
Strong Returns for Townhouses
Median rental growth within the Primary Catchment has been strong over the last six years, driven predominantly by shifts in the smaller house product. This appears to be resonating with the market noticeably and demand appears to have catalyzed significant upward momentum in weekly rental rates.
Whilst larger, more traditional four bedroom homes have not experienced the same level of rental increase, median rates have still increased by 9.1% along with townhouse rents which increased by 9.6% from $365 to $400 per week. Notably, the total number of new townhouse bonds lodged per quarter has increased by 72% since the start of 2010. The growth in number of bonds lodged in the townhouse rental market reiterates the growing acceptance and emand for smaller housing options.
Again it is important to note that the median provides a snapshot of the midpoint of the market and it is expected that a number of higher quality dwellings, across all of the above configurations, will have performed outside of the growth stated above.
Overall two and three bedroom homes have seen an increase of 34.4% and 47.4% respectively since the start of 2010. This is largely a testament to the emerging small dwelling product within the region which is being delivered to a high standard.