Location Report. Coffs Harbour U Retire ( ) Retire with Property

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1 Location Report Coffs Harbour Retire with Property 1300 U Retire ( )

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3 Coffs Harbour Location Coffs Harbour is a regional town on the North Coast of New South Wales halfway between Sydney (540km South) and Brisbane (390km North). Nestled amongst dozens of beaches and mountains, Coffs Harbour was awarded the title of Australia's most liveable climate by the CSIRO in Population & Demographics Coffs Harbour's population, which currently sits at 73,237 has been growing at a rate of 1% per year and is projected to grow at a rate of 1.47% through to 2031, placing it as the second fast growing area in regional NSW. Approximately 50% of the population are of working age, which is much lower than national and state averages of 57% and 56%, respectively. This can be considered a reflection of the region's attractiveness to retirees and young families over professionals. The region's median age is 42 and has consistently sat between three and four years above the state average since Coffs is especially attractive to retirees, who make up 25% of the population (whilst state and national averages sit at the 20% mark) and accounted for 50% of the population increase from Date 29/05/2015 Current Population 73,237 Projected population ,896 Median Age 42 Location Report 3

4 The Property Economics Coffs Harbour has a well diversified, generally service based, economy. Whilst tourism accounts for a large portion of the workforce, Coffs is not heavily reliant on the industry to drive economic activity, unlike some coastal Australian towns. In fact Healthcare (10.8%), construction (7.6%) and education (6.2%) account for over a quarter of the region's economic production. Coffs is commonly referred to as a central point of access for surrounding regions to essential services such as education and healthcare. Employment opportunities within Coffs are somewhat more reflective of the importance of tourism to the area as retail and hospitality services account for 23% of the region's workforce. Australian research and valuation firm, Herron Todd White, noted in their November 2014 property report that Coffs' natural assets, diverse industrial base and growing health and education sectors means the area is not entirely dependent on tourism which makes for a less risky investment and higher liveability than other coastal towns. students and generates over $30 million for the local economy annually. In addition, the greater Coffs region is home to over thirty schools catering for public, private, religious, primary and secondary needs. In January, the government finalised a $73 million upgrade to the Coffs court house which will include a four level, state-of-the art court system. Housed in the same complex will be the offices for NSW legal aid, NSW Director of Public Prosecutions and the NSW Justice Health and Mental Health Network. This was followed by increasing the local police force by 90 officers in May. These investments are beginning to pay off for the region as most crime statistics have decreased and are at or below NSW averages according to the NSW Bureau of Crime Statistics and Research. The amenities creating this stability are transport, health and education. The area represents a major transport hub for the central north coast of New South Wales as rail, road, seaport and airport infrastructure are all within one kilometre of the CBD. These services are also complemented by public bus and train transport services which ensure the region maintains a high level of accessibility. The Coffs Harbour health campus positions the region as the central coast's hub for health by providing emergency, surgery, palliative care, rehabilitation, mental health and general medicine services. The main point of education within the region is the Coffs Harbour Education Centre (CHEC) which is a shared education campus between the Southern Cross University, NSW North Coast Institute of Tafe and Coffs Harbour Senior College. All three institutions share facilities whilst providing their own curriculum, which allows for easy transition between different levels of education and strong combined programs. The campus services over 3000 Location Report 4

5 Property Overview Dr Andrew Wilson, senior economist at Australian Property Monitors, described Coffs' housing market as recovering in 2014 and expects continued moderate growth through Data throughout 2014 and the first quarter of 2015 support Dr Wilson's claims as the housing market has achieved 5.2% growth in the twelve months through to January 2015, where median prices sat slightly higher than most of regional NSW at $371,000. Vacancy rates have been consistently below 2.5% in the area since 2009, a reflection of the tight rental market. The Vacancy rates have tightened over the last 12 months from 2.3% to the current 1.5%, which is a key driver behind yields of 5.5% for houses. On the other hand, the city's apartment market struggled through 2014 and the early parts of They experienced a loss in value of 5.1%, which was slightly offset by a high rental yield of 6.7%. The loss of value is indicative of a decrease in demand, which manifests as a 5% decrease in units sold from June June 2014 and an average of 171 days spent on the market whilst the total available units on the market increased throughout the year. According to a report from Westpac and Herron Todd White, the Coffs market is experiencing an increase in demand for low priced houses between $300,000 - $400,000 driven by an increasing recognition as a major regional town with a diversified economy underpinned by growing industrial, education and health sectors. This demand is coming from the "traditional housing market role" of attracting retirees and, significantly, young families moving from the southern regions looking for a more affordable, and relaxed, lifestyle. Accordingly, three and four bedroom dwellings are the most popular in the region, accounting for 60% of the market. Vacancy Rates % Location Report 5

6 Property Overview Property Statistics (Houses) Property Statistics (Units) Median House Value $371, Median Unit Value $214, Capitalized Annual Yield Houses % Capitalized Annual Yield Units % % p.a. Growth Median Value Houses Median Weekly Rent Houses Average Days Market Houses Sales Volume Houses % $ % p.a. Growth Median Value Units Median Weekly Rent Units Average Days Market Units % $ Sales Volume Units: 152 Location Report 6

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8 The Future Coffs Harbour is one of regional New South Wales' fastest growing regions. With its growth being driven mainly by young families and retirees, the local government has recognised the need for improved healthcare services which lead to a commitment to a $156 million upgrade of the Coffs Harbour hospital. The upgrade would enhance the existing community health unit and surgical and operating theatres. It would also introduce new theatres, a short stay surgical unit, an orthopaedic and vascular unit, an ambulatory care area and 160 new electric hospital beds. Since retaining power in the NSW state elections in March, the Liberal National government reiterated their plans to upgrade the hospital. However, no dates for construction were outlined nor have any been provided since. growth and any future projections should be regarded with caution until more of these projects are commenced. Increased liveability is expected to be attractive to new and future residents, as is the improved accessibility attributed to a $1.69 billion upgrade to the Pacific Highway surrounding the region; voted New South Wales' worst road. The Sapphire to Woolgoolga and Warrell Creek to Nambucca Heads sub projects will significantly improve travel time to and from the Coffs Harbour region. The Sapphire to Woolgoolga leg was an $800 million project completed in June 2014 and will improve connectivity to the south. Warrell Creek to Nambucca heads will improve accessibility from Coffs to the north and has a value of $800 million with an expected completion date of The affordable accommodation with easy access to CBD employment nodes, education and retail amenities and beach and mountain lifestyle of the outer Coffs Harbour suburbs make it an attractive destination for young families and retirees. Accordingly, these suburbs are the major focus of new developments. The North Sapphire Beach has a 267 lot development located ten minutes south of the Coffs CBD and within five minutes of North Sapphire Beach. The project had a total value of $90 million and the seventh stage of releases is currently on the market. There are also two major development proposals on Lyons Road, a 160 lot development ten minutes south of the CBD and North Boambee Road, a 155ha application for residential zoning to accommodate for 2,100 people. However, these applications have not yet progressed past proposal stages and should not be considered definite developments. Whilst there is expected to be a steady increase in employment opportunities at 1.5% per annum, there isn't a great deal of investment (public or private) in infrastructure and development projects. This is potentially limiting to Location Report 8

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10 Infrastructure Coffs Harbour Hospital Upgrade Project Description The project will involve enhancements of the existing surgical and operating theatres and community health unit. It will also introduce new theatres, a short stay surgical unit, orthopaedic and vascular units and an additional ambulatory care area. Impact It will increase the size and availability of hospital services to accommodate for increased healthcare needs. Value Status Status Description $156 million Proposed Promised by the National Party in March Pacific Highway Upgrade Project Description These are two sub projects of the $6+ billion upgrade to the Pacific Highway, which is designed to allow for improved travel on one of Australia's most economically important highways. It will increase the quality of roads and add two lanes to significantly improve travel times. Impact It will improve the general quality and add an extra two lanes to the existing highway. Value Status Status Description $1.69 billion Under construction Part 1 (Sapphire to Woolgoolga) completed in July 2014 and Part 2 (Warrell Creek to Nambucca Heads) due for completion in Location Report 10

11 Infrastructure Coffs Harbour Justice Precinct Project Description Five story, state of the art courthouse housed under interview rooms, offices for NSW legal aid, NSW Director of Public Prosecutions and the office for the Justice Health and Mental Health Network. Impact Significantly improved courthouse quality and services as well as created a hub for Law and Justice services on the Mid North New South Wales Coast. Value Status $73 million Complete Status Description Opened on Friday 30 January Location Report 11

12 Conclusion Hold Risk Total Explained Buy Hold Caution Property Research Committee Superannuation Property s property research committee is comprised of some of the Industries leading property economist and specialists. Our team offers due diligence solutions to industry specialists, property developers, property firms, superannuation funds and private clients. Superannuation Property research derives the latest research from a myriad of sources including Hotspotting, Various Real Estate Institutes, Australian Property Monitors, Property Council Of Australia, Australian Bureau of Statistics, Reserve Bank of Australia, Real Estate.com, Domain, Urban Development Institute Of Australia, Local Authorities & Councils, Price Finder, RP Data, Infrastructure Plans, State Governments, and Industry Bodies & Publications. Dylan Crowe Managing Director Dylan s range of capabilities extends from financial planning and finance, to property and sustainable development. Formal qualifications include: Bachelor of Property and Sustainable Development, Diploma of Financial Services, Financial Planning, Diploma of Property and LREA. Location Report 12

13 Notes Retire with Property