GRANGE SUBURB PROFILE

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1 1 Grange is a quiet, leafy suburb whose dwelling typology is characterised by Queenslander, timber and tin homes which maintain a stronghold on the inner-north s prestige market. OVERVIEW Grange is one of inner-northern Brisbane s most sought after residential addresses. Situated only six kilometres from the Brisbane CBD and bordered to the north by Kedron Brook. The quiet, leafy suburb s dwelling typology is characterised by Queenslander, timber and tin homes which maintain a stronghold on the innernorth s prestige market. POPULATION AND DEMOGRAPHICS 1 The population of Grange is estimated to sit at 4,587 persons. Over the past five years the population has grown at a slower rate than Brisbane (1.2% vs 1.6%) which is attributable to the lack of available land supply for housing development. Consistent with this is a population which is not expected to grow much from its current levels. By 2036 Grange is estimated to be home to 4,873 persons representing a total growth of only 286 people from the current estimates. This highly contained growth will be a major factor underpinning the health of the suburb s housing market moving forward. With its capacity for only negligible new supply in the face of escalating demand for homes close to Brisbane s CBD, values are set to continue to rise. THE S POPULATION IS NOT EXPECTED TO GROW MUCH FROM ITS CURRENT LEVELS GIVEN THE LACK OF AVAILABLE LAND FOR FUTURE RESIDENTIAL DEVELOPMENT. MEDIAN WEEKLY INCOMES VS GREATER BRISBANE $3,000 $2,500 $2,000 $1,500 $1,000 $895 $633 $2,545 $1,388 $2,098 $1,615 FAMILY INCOME 45% HIGHER THAN BRISBANE $500 -$ Personal Family Household Grange Greater Brisbane Source: Resolution Research, ABS May Queensland Government Statistician s Office, Brisbane City Council

2 The population is affluent with the majority of its workers employed in professional and managerial roles earning incomes significantly higher than greater Brisbane. 2 The population is affluent with the majority of its workers employed in professional and managerial roles earning incomes significantly higher than greater Brisbane. Census data shows that the median weekly personal, family and household incomes within Grange were at a 41%, 58% and 51% premium to the Brisbane medians respectively. Rates of home ownership within Grange are high with 72% of residents living in homes which are either owned-outright or under mortgage tenure. Despite this, rental demand is strong with 28% of homes occupied under rental tenure. 72% HOME OWNERS 28% RENTERS Census. Lone person households accounted for next largest proportion of the population at 21% followed by single parent (9%), group/share (6%) and other family (1%) households. This data highlights that dwelling demand is fundamentally for three and four bedroom homes. TRANSPORT AND INFRASTRUCTURE The public transport infrastructure which supports the residential population of Grange is extensive. Queensland Rail s Ferny Grove line runs along the border of the suburb stopping at three stations nearby (Alderley, Newmarket and Wilston). From Wilston, travel time to the CBD is fifteen minutes. THE PUBLIC TRANSPORT INFRASTRUCTURE WHICH SUPPORTS THE RESIDENTIAL POPULATION OF IS EXTENSIVE. Charles Hospital, Chermside and the broader local area. The Northern Busway has stations at both Lutwyche and Kedron Brook providing the community with a efficient rapid-transit bus system. The suburb benefits from having no major arterial roads running through it. Rather, it is bordered by Enoggera Road to the west and Lutwyche Road to the east which connect with the Inner City Bypass and Legacy Way at Kelvin Grove and the Airport Link at Kedron. Travel time via private vehicle to the Brisbane Airport precinct via the Airport Link is approximately ten minutes. RETAIL With easy access to the state s largest shopping centre and an array of local centres all within close proximity, residents of Grange are spoilt for choice when it comes to retail amenity. The suburb is a popular address for couples with and without children at home which made up 63% of the population at the time of the last A number of TransLink bus services also service the suburb linking it with the CBD, The Royal Brisbane and Women s Hospital, the Prince Wilston Village is situated along Kedron Brook Road in neighbouring Wilston and home to a range of boutique retailers, cafes, NEWMARKET ALDERLEY WILSTON LUTWYCHE

3 With easy access to the state s largest shopping centre and an array of local centres all within close proximity, residents of Grange are spoilt for choice when it comes to retail amenity. 3 bars and restaurants. Wilston Village is considered Brisbane north side s high street of retail and is a true lifestyle destination, less than one kilometre from Grange. Westfield Chermside Shopping Centre is currently undergoing a major $355 million upgrade with Stage one opening in April of this year. The Centre is now the largest in Queensland with 495 retailers including Sephora, H&M and Zara. The Centre s new luxury dining and entertainment precinct is nearing completion with its opening set down for June On completion Westfield Chermside will become a shopping destination unlike no other in the state. The Centre will afford the local community access to the largest volume of retailers under the one roof of any community in Queensland. The Centre is located 5.8 kilometres from Grange. In response to the needs of the region s rapidly growing population a $40 million refurbishment of the long-established Lutwyche City shopping centre is underway. On completion the centre will house a new 3,400m 2 Woolworths supermarket, a new child care centre, health services, commercial space and a range of new retailers. The Centre is situated within a ten minute drive from Grange. Both Newmarket Village and Stafford City Shopping Centre are the primary retail centres servicing the day to day needs of the local community. Stafford City Shopping Centre is anchored by Woolworths, Aldi and Big W and home to 75 speciality retailers, food and beverage outlets and service providers. Hoyts also operates a popular cinema complex within the centre. Newmarket Village is anchored by a large, modern Coles supermarket and supported by more than 30 speciality retailers, service providers and eateries. The iconic Newmarket Hotel is also situated within the Village and has long been a favourite dining and entertainment venue for Brisbane s inner northern population. CAFÉ CULTURE The suburb has a rapidly emerging café culture which continues to enhance the enviable lifestyle already on offer within the suburb. According to Walkscore there are an estimated 60 restaurants, bars and coffee shops in Grange which people can walk to an average of two within 5 minutes. These include Paddock Espresso and Brew Masters Café & Bar which both feature in Must Do Brisbane. 60+ RESTAURANTS, BARS, COFFEE SHOPS EMPLOYMENT Given the suburb s close proximity to two of Queensland s major hospitals it is unsurprising that hospitals are the largest industry of employment across the Grange s working population. The Prince Charles Hospital, employing more than 3,100 workers, is 4.5 kilometres from Grange. The hospital is a major tertiary referral hospital and has the leading MIN PRINCE CHARLES RBWH BRISBANE CBD AUSTRALIA TRADE COAST & AIRPORT

4 Residents of Grange are afforded a healthy, active lifestyle underpinned in the main by Kedron Brook and its tree-lined Bikeway Kedron Brook is one of the inner north s most prized natural assets. 4 cardiac department in Queensland. The Royal Brisbane and Women s Hospital (RBWH) is 4.8 kilometres from the centre of Grange and is estimated to employ more than 6,400 workers. The RBWH sits at the centre of clinical research in Queensland and is one of the state s three largest medical precincts. 226,000+ WORKERS The Australia TradeCoast (ATC) is comprised of 32 industry precincts including the Brisbane Domestic and International Airports, Aerotech Park, Skygate and the Port of Brisbane. The ATC is situated 13 kilometres from Grange and its easy accessibility makes it a key driver of dwelling demand within the suburb. The ATC is home to around 1,500 businesses and over 60,000 employees. The region is forecast to employ more than 110,000 people by 2026 making it the second largest employment node outside of the Brisbane CBD. The region continues to expand aggressively underpinned by the $5.2 billion expansion of Brisbane Airport. On completion of the expansion, Brisbane Airport, which is already the largest capital city airport in the country, will become the gateway to Australia with the same capacity as both the Hong Kong and Singapore Airports. Brisbane s CBD workforce is estimated to sit at almost 156,500. By 2031 the CBD s workforce is projected to increase to sit at 222,178 people resulting in an expansion of more than 65,600 new workers. This massive expansion will continue to place pressure on the requirement for new dwellings, particularly throughout the inner city. EDUCATION Grange is particularly well located within close proximity of a range of educational institutions from child care through to tertiary. Elite schools in the area include Padua College, St Columba s Primary School and St Anthony s School. The popular Wilston State School is situated two kilometres from Grange. The Queensland University of Technology s Kelvin Grove campus is situated five kilometres from Grange and is currently home to more than 14,180 students. Both students and staff from the campus are a major driver of dwelling demand within the suburb. The Queensland University of Technology s Gardens Point campus, with more than 27,370 student enrolments is only 8.5 kilometres from Grange and easily accessible by train or bus. 17,652 TERTIARY STUDENTS 5 The University of Queensland s Herston Campus, which is situated within the Royal Brisbane and Women s Hospital precinct is another key driver of rental demand within the suburb. Student enrolments at the campus for 2016 sat at 3,472 a number which continues to grow. The University s main campus at St Lucia is situated 14 kilometres from Grange and was home to more than 45,120 students in As with most of inner Brisbane s suburbs which are within close proximity of major public transport infrastructure, dwelling demand within Grange is derived from the high volume of students attending this institution. RECREATION Grange is home to more parks than any other suburb in Brisbane s north. Residents of Grange are afforded a healthy, active lifestyle underpinned in the main by Kedron

5 Grange s residential market has been a strong performer, significantly outperforming growth throughout greater Brisbane over the past five years. 5 Brook and its tree-lined Bikeway. Kedron Brook is one of the inner north s most prized natural assets. The Kedron Brook bikeway stretches for almost 20 kilometres along the nature corridor of Kedron Brook from Mitchelton to Nundah, through Grange. East of Nundah it connects to the Jim Soorley Bikeway which leads to the Nudgee Golf Club next to the Brisbane Airport. Kedron Brook runs 29 kilometres from Kedron and Cedar Creeks through to the Schulz Canal which flows into Moreton Bay. Kedron Brook is one of the largest catchment areas in Brisbane with many creekside parks, picnic facilities, barbecues and a number of dog off-leash areas. Kedron Brook provides a large and valuable green break along the northern boundary of the Grange which significantly informs housing values which run alongside it. There are five sporting parks all within one kilometre totalling approximately 33 hectares, in addition to seven playgrounds within the area. This particularly high volume of green space sees Grange rank as the inner north s greenest suburb. Grange Forest Park is one of the most notable which contains a large bushland area, a habitat restoration site, a dog off-leash area and a children s playground. Lanham Park is another of the suburb s major recreational areas home to the Grange Bowls and Community Club, the Grange Library, the Wilston Scouts, a children s playground, kindergarten and Grange Thistle Soccer Club. Consistent with the demands of an active community there are a plethora of sporting clubs which operate within the suburb and its immediate surrounds. These include Brothers Grange Community Sports Club, the Wilston Grange Australian Football Club, Commercial Hockey Club, Gold Crest Cricket Club and Australia s largest indoor sports centre - Brisbane City Indoor Sports Centre. RESIDENTIAL MARKET PERFORMANCE Grange s residential market has been a strong performer, significantly outperforming growth throughout greater Brisbane over the past five years. The suburb s median house price has grown at an average annual rate of 7.2% per annum compared with Brisbane which has recorded a rate of growth of 5.7% over the same time period. 7.2% P.A. BRISBANE 5.7% P.A. Consistent with this strong performance is a housing market achieving sizeable premiums over Brisbane with the median house price for the twelve months ended March 2017 sitting at $908,000 which is a 38% premium over the Brisbane median of $658,000. Over the past five years, the Grange s median house price has jumped by $238,000 (or by 29%) pointing to a market which is undergoing a particularly strong phase of growth. MEDIAN HOUSE PRICE $908,000 38% PREMIUM TO BRISBANE The suburb is home to very few townhouses with the last counts showing 6% of housing stock (or 89 in total) comprised of this dwelling type. The balance of stock is split between detached houses 84% (or 1,228 dwellings) and units 10% (or 151 dwellings). Given the particularly low number of townhouses within the suburb,

6 Rental market conditions within Grange are favourable with the median weekly rent of a four-bedroom house growing by an average of 3.0% per annum more than three times that recorded throughout Brisbane s innernorthern region. 6 $1,000,000 MEDIAN HOUSE PRICE PERFORMANCE VS BRISBANE 2007/08 TO 2016/17 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2007/ / / / / / / / / /17 Grange Brisbane Source: Resolution Research, The State of Queensland May 2017 sales transactions of these types of properties are limited, averaging only 12 per annum over the past ten years which is considered too low a volume to be statistically reliable. A solid measure of the health of the suburb s attached dwelling market is its prevailing median price which, like the suburb s housing market, sits a substantial premium to Brisbane s. For the year ended March 2017, the median price of an attached dwelling within Grange sat at $532,000 compared to the Brisbane median of $445,000 representing a premium of 20%. $532,000 MEDIAN UNIT PRICE 20% PREMIUM TO BRISBANE The suburb s performance has been so strong it s housing market was recently ranked as Brisbane s number one market by Australian Property Monitors. Rental market conditions within the Grange are favourable with the median weekly rent of a fourbedroom house growing by an average of 3.0% per annum more than three times that recorded throughout Brisbane s innernorthern region. Rental vacancy rates throughout the suburb are particularly tight. At the time of undertaking this research the

7 The supply of new housing throughout Grange is highly constrained. Future development within the suburb is limited to low-scale apartments (where allowable) on existing dwelling sites which will need to be amalgamated. 7 suburb s townhouse vacancy rate sat at only 2.8%. Running in concert with this low vacancy rate is a high yielding environment with the current average gross rental yield across the townhouse market sitting at a high 6.5%. The supply of new housing throughout Grange is highly constrained. Future development within the suburb is limited to lowscale apartments (where allowable) on existing dwelling sites which will need to be amalgamated. The redevelopment of the Brothers Grange Community Club is the last major re-developable parcel of land remaining within the suburb and as such represents a unique purchasing proposition. This will be the last time a small, enclave community will be able to be developed within the suburb and will undoubtedly play a major role in underpinning the continued growth in values within the area. 2.8% VACANCY RATE 6.5% GROSS RENTAL YIELD