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NEW SOUTH WALES The Mid North Coast region is ranked fourth in Australia for business confidence with its regional economy growing at a healthy 4.1% p.a. and produces an annual Gross Regional Product of $11.3 billion. - Regional Development Australia s Mid North Coast Prospectus. Fuelled by business opportunity and lifestyle advantages, the Mid North Coast population has been growing steadily at 1% per annum for the past 10 years. The latest forecasts estimate the region s population to grow to 273,700 by 2021. As one of Australia s most diverse regional economies, the Mid North Coast supports a variety of flourishing industries. The booming health and aged care industry leads the way; manufacturing (including food manufacturing), retail trade, financial & insurance services and construction round out the top five, with the education & training industry a key one to watch. Tourism also plays a significant role in the regional economy. The Mid North Coast is one of Australia s most celebrated tourist destinations and attracts 4.9 million visitors every year, spending around $1.4 billion. A large portion of this is captured by the accommodation & food services industry. Further economic development and employment growth is expected in areas such as finance, administration, business services, health, aged care and tourism. The value of the Mid North Coast s close geographic connection to the NEW SOUTH WALES THE CONNECTED STATE Key infrastructure projects such as the upgrade to the Pacific Highway and the National Broadband Network (NBN) rollout in Coffs Harbour provide opportunities for increased education and labour market outcomes. There are around 20,000 registered businesses throughout the Mid North Coast and a workforce of over 79,000 New South Wales generates almost 31% of Australia s GDP Japan, Korea, the United States, China and New Zealand make up the State s top five export destinations. MID NORTH COAST GROWTH DRIVERS Health and aged care Manufacturing and construction Retail trade Financial and insurance services The NSW property industry is most optimistic in the nation with sentiment continuing to rise, according to Australia s largest business confidence survey, the Property Council/ ANZ Property Industry Confidence Survey. major industrial centres of Sydney, Newcastle, the Gold Coast and Brisbane is evidenced by the region s accelerating export growth, which is currently sitting at $4.52 billion per annum.
MARKET TRENDS Coffs Harbour has been identified as a major regional centre of the Mid North Coast with its strategic position between two major capital cities on Australia s east coast. The city is located in New South Wales, about 540 kilometres north of Sydney and 440 kilometres south of Brisbane and has a permanent population of over 72,400. Coffs Harbour will reap the benefits of further infrastructure upgrades and duplication of the Pacific highway to four lanes, making it even more accessible to major cities on the Eastern seaboard. Most importantly its economic diversity underpins its continued growth with industries such as health care, retail trade, accommodation, food services, construction, education, manufacturing and agriculture. Coffs Harbour City is bounded by the Clarence Valley Council area in the north and west, the Coral Sea in the east, and Bellingen Shire in the south. The region has a very strong existing retail and trade sector. POPULATION AND DEMOGRAPHICS The population of Coffs Harbour increases annually by an average of 1% and is currently sitting at 71,798. Over the period to 2036, the population of Coffs Harbour is expected to increase by over 30,000 persons or an average annual rate of 1.3% to a population of approximately 101,800 persons. The importance of the Coffs Harbour area as a destination for retirees and more significantly families from areas further south is expected to continue over the forecast period. As a result of this there is significant pressure for residential expansion within the Coffs Harbour area from both existing residents and from people moving to the area. Coffs Harbour is also appealing to investors and skilled professionals looking to relocate to the region as it becomes more connected and accessible. The Coffs Harbour City population forecast for 2014 is 72,431 The city has a dynamic business community There is a 20 year Master Plan to improve the CBD and other areas of the city Residential development forecasts assume the number of dwellings in Coffs Harbour City will increase by an average of 522 dwellings per annum to 41,429 in 2031 Coffs Harbour Regional Airport is one of the largest and busiest regional airports in New South Wales POPULATION GROWTH Projections show the Coffs Coast will be the secondfastest-growing centre on the North Coast behind Tweed Heads. In the next 20 years, the population of the area is expected to increase at an average annual rate of 1.3% Projected population growth has strengthened the case for greater regional funding for roads, health and infrastructure SUPPLY AND DEMAND The number and value of dwelling approvals increased by 4.8% and 23.8%, respectively, in the March Quarter 2014; Strong growth in the rental market with annual increases in median weekly rents for three bedroom houses at 6.4%, and two bedroom units at 4% over the year to the March Quarter 2014 Rental yields for houses in Coffs Harbour are 4.9% Annual capital growth is 2.84 %
DEVELOPMENT The total number of residential building approvals in Coffs Harbour was 290 in the year to December 2013, representing a strong annual increase of 20.3%. DEVELOPMENT PROJECTS IN The total value of dwelling approvals in the year to December 2013 increased to approximately $87.4 million, whilst the total value of non-residential building approvals rose significantly by 74.5% to $94.5 million. The diverse economy Coffs Harbour enjoys, including tourism, retail and construction, means it is not solely reliant on a single economy or resource sector for its continued growth. Coffs Harbour City Council is actively working towards economic expansion by promoting the region to new residents, potential business enterprises and potential investors. The aim of economic growth is to bring about a stronger economy, improved services, greater employment prospects and a more liveable community. HARBOUR DRIVE ACCESS The project will improve City Centre access and legibility and capture the 5 million vehicles per year travelling north along the Pacific Highway by enabling tourists to turn directly onto the active environment of Harbour Drive It will also leverage off of the Moonee Street Sail proposed within the City Sails Project and improve the Moonee Street arrival experience through improved signage and an entry statement. Pacific Highway Upgrade The Pacific Highway upgrade is one of the largest road infrastructure projects in NSW from which the Coffs Harbour region and tourism economy will benefit greatly. The upgrade includes major works at Coffs Harbour and to the north of Coffs Harbour such as the Coffs Harbour Bypass and from Sapphire to Woolgoolga. Other Projects Other surrounding local development projects that are expected to benefit the region include: Harbour Drive Access City Sails City Square City Square Cultural Building Entertainment Centre Brelsford Park. These projects will be major drivers of employment and population and this growth will further increase demand for rental properties and capital growth in Coffs Harbour. CITY SQUARE PROJECT The project will transform Harbour Drive from a regional shopping street to a vibrant tourism destination It will also further supplement the $8 million per year that the Grower s Market contributes to the local economy ENTERTAINMENT CENTRE The facility will accommodate 600-700 seats, on a site of approximately 2,000sqm, and be located within the City Centre The Centre will provide a key destination, add life to the City Centre and establish a key point of difference It will effectively contribute to the nighttime economy of the region PROPOSED FUTURE CITY SQUARE
ECONOMY Coffs Harbour is one of the fastest growing and most dynamic areas within regional NSW with the Gross Regional Product (GRP) increasing by 0.7% to $3.7 billion. Construction is the largest industry in terms of business numbers in Coffs Harbour, accounting for 18.5% of the total number of local businesses, followed by the Agriculture, Forestry & Fishing at 10.8%. In the 2013-15 regional building report, Coffs Harbour is at the head of its growth league, with building growth anticipated to be around 52% through 2014. This level of growth will see it back near the levels last seen before the Global Financial Crisis, and is supported by the rapid growth in the area s population as well as job creation that is well above the Australian average. Coffs Harbour s strengths to investors lie in its infrastructure; the airport, university and rail links; in addition to the region s accessibility. Tourism in the areas is also booming, with Tourism Research Australia ranking the North Coast of New South Wales third in the country for domestic visitor night, ahead of Brisbane, the Gold Coast and the Sunshine Coast. MAJOR INDUSTRIES Health and Aged Care generates 4,285 local jobs Retail provides 3,855 job opportunities in the region Accommodation and food services account for 2,799 jobs Construction generates 2,660 jobs The Mid North Coast offers a wide choice of schooling options with over 100 public schools, over 20 Catholic schools, and 17 other private schools to choose from. The region also plays host to a number of world-class universities, TAFE campuses and trade training centres. INFRASTRUCTURE INFRASTRUCTURE The Coffs Harbour city centre plan accommodates 2,000 new jobs and 5,000 new residents. The form of the city will reinforce the distinctive precincts that make up the City Centre such as the CBD, the Jetty area and Park Beach. The City of Coffs Harbour was named one of the world s Smart21 Communities of 2014, buoyed by an early NBN rollout. The shift towards a digitally connected economy is revolutionising many industries and opening doors to new opportunities in national and international arenas. INFRASTRUCTURE AND GROWTH As the regional city for the Mid North Coast, Coffs Harbour is set to be a centre for jobs, key regional services, cultural activity, entertainment and tourism. Jobs will focus on high growth industries that build the city s strengths in health, education, retail, tourism and cultural activities and will prompt the development of further infrastructure to support the growth of the region. The combination of these variables has piqued Lifecorp s interest in Coffs Harbour. Development expenditure and population growth projections were particularly influential, and Lifecorp is very keen to discover any opportunities that Smart Property Research may uncover on the ground for Lifecorp members.
Acknowledgment: All information, material and presentations provided are for educational purposes only, it does not take into account your personal situation and is not to be considered advice, financial or otherwise. Lifecorp, it s nominee s and associated companies are not licensed to provide financial advice under the Financial Services Reform Act. It is recommended that you seek advice from an independent qualified advisor and/or any other financial expert prior to implementing any investment program.