Location Report Chermside, North Brisbane Retire with Property 1300 U Retire (873 847) www.superannuationproperty.com
Chermside, North Brisbane Location Population & Demographics Chermside is an inner metropolitan suburb in the north of the City of Brisbane LGA. Gympie Road as well as other major arterial roads connects the area to the CBD (18 minute drive) and the Brisbane Airport (13 minute drive). Chermside s bus station services all of North Brisbane and provides connections to the city. The postcode of 4032 encompasses Chermside and West Chermside. The area falls within the State Electorate of Stafford and Federal Division of Lilley. The Brisbane LGA had 1,089,879 residents in 2011, which has been projected by the Queensland Government Statistician s Office to increase to 1,378,728 by 2031. Data from the ABS has revealed that Chermside s population has experienced a strong growth trend over the last 10 years. The ABS shows the 2001 population of 5937 people grew by 7.07% to 6357 in 2006. The population then increased 28.52% to population of 8,170 recorded in 2011. Chermside s population is projected to grow by a massive 85.34% to 15,142 residents by 2031. The median age for Chermside is 35, however the predominant age group for the area is 25 to 29 year olds at 12.4%, reflective of the areas attraction to young workers. 2011 Census data shows that the 0 to 17 year olds accounted for 17.3% of the population, below Greater Brisbane s 27% for the same group. 18 to 59 year olds make up 59.1% of the population and retirees (60 +) 23.5% compared to 56.2% and 16.9% for Greater Brisbane. Date 05/08/2015 Current Population 8,170 Projected population 2031 15,142 Median Age 35 Location Report 3
The Property Economics Chermside has been described as a mini-cbd due to its well-established infrastructure and amenities. The suburb s Westfield shopping center is one of the biggest in the Queensland. The area is reaping the benefits of recently completed infrastructure projects such as the $4.8 billion Airport link and the $135 million Northern Busway completed in 2012. The project has improved the flow of traffic across the area and the bus station provides connectivity to the CBD, QUT Kelvin Grove, the Northside and the train lines. Chermside has two main primary schools, Craigslea State School and Wavell Heights State School, and two main high schools, Craigslea State High School and Wavell State High School, whose catchment cover Chermside and West Chermside. CBD. The $1.5 billion Legacy Way, which connects the Western Freeway and the Inner City Bypass, opened for use in June 2015. The $220 million Inner City Bypass, which was opened in 2002, is connected to the Airport Link Tunnel and Legacy Way, the three components of Brisbane City Councils TransApex project. The project, which recently completed construction, was delivered in 5 stages and has been described by Brisbane City Council as the "biggest urban road project proposed in Australia". There have also been ongoing upgrades to sewers extending the operational life of the infrastructure in response to population growth; with the recently completed $3.5m Urban Utilities North Kedron Brook Sewer Protection Project completed July 2014 and a further $130 million of similar projects proposed. Hospitals, schools and government departments play a large role in providing employment across Brisbane Northside. The Prince Charles Hospital services local residents and provides a vital source of employment for its 3500 staff. Government offices are such as the Australian Taxation Office, Department of Corrective Services, Emergency Services Queensland and Queensland Ambulance Services are all located in the Northside. Chermside is made up of younger, office-based workers; the most common employment trend being professionals (25.1% of population) working in Health Care and Social Assistance (10% of population). The main types of employment following this are Clerical and Administration workers (15.8%) and Technicians and Trades Workers (12.1%), Community and Personal Service Workers (11%) and Labourers (10.1%). The other core industries of employment are Accommodation and Food Services (5.3%) and Education & Training (3.5%). The Australia Trade Coast (ATC) Precinct is a 16-minute drive from Chermside and is one of the fastest-growing trade and industry regions in Australia according to the Brisbane City Council. The ATC, which has invested over $1 billion in infrastructure development in the last 5 years, is home to around 1500 leading businesses across a variety of industry s, and employs 60,000 people. It is expected that this will increase to 110,000 people by 2026. Transit-orientated developments such as the $10 billion Trans Apex project has connected existing motorways, major arterial roads and diverted cross-city traffic out of the Location Report 4
Property Overview According to data from SQM research, the weekly asking property price for the 4032 postcode has shown little real growth historically. Periods of moderate increases and decreases over the last 5 years for both houses and units have been recorded. Data from Residex for Chermside confirms that the % p.a. of growth in the median value of houses has grown 12% to the median price of $588,000 in June 2015. The median weekly rent on houses is $450, representing a capitalized annual yield of 4%. since April 2010 from 120 houses and units to 221 houses and units in July 2015. The increase of unit stock available has almost doubled since April 2010. Vacancy Rates in the 4032 postcode, which includes Chermside and Chermside West, are currently 3.1%. The rate has shown a positive trend historically, remaining between a 1 to 3.5% range since July 2005 with one peak around 4.5% in Jan 2010. Vacancy Rates 3.10% API data shows that the volume of house sales decreased from 141 sales in the 12 months leading to August 2014 to 125 for the 12 months leading to March 2015. The average days on the market marginally deteriorated from 63 to 70 within those periods. This shows a decreased demand for houses within the Chermside area, which is having a small affect the liquidity of the market. Houses account for 36% of the dwellings in Chermside and owner-occupiers only 34.6%. Medium-density and highdensity dwellings make up 23.2% and 40.6% of the market respectively; renter s account for 57.6% of residents in Chermside. Residex data shows that within Chermside, the median value of units has yielded a 1% p.a. increase to the median price of $396,000 in June 2015. The median weekly rent on units is $390, representing a capitalized annual yield of 5%. API data shows that the volume of unit sales increased from 151 sales in the 12 months leading to August 2014 to 159 for the 12 months leading to March 2015. The liquidity of units for Chermside has had only marginal changes between August 2014 and February 2015. The average days on the improved significantly from 137 to 102 days within those periods; this shows an increase demand for units within the Chermside area resulting in an increasingly liquid market. Building 2 of Arbour on Charlotte in Chermside has 74 open plan units. The price point falls between $348,000 and $530,000 and the quality of the units being introduced is similar to recent developments in the surrounding suburbs. According to data from SQM Research, the stock on the market for the 4032 postcode has increased marginally Location Report 5
Property Overview Property Statistics (Houses) Property Statistics (Units) Median House Value $506,000.00 Median Unit Value $397,000.00 Capitalized Annual Yield Houses 410.00% Capitalized Annual Yield Units 500.00% % p.a. Growth Median Value Houses Median Weekly Rent Houses Average Days Market Houses 1,240.00% $400.00 Sales Volume Houses 135 68 % p.a. Growth Median Value Units Median Weekly Rent Units Average Days Market Units 40.00% $380.00 107 Sales Volume Units: 114 Location Report 6
The Future Brisbane was been identified by companies such as NAB economics and Macquarie Wealth Management in 2015 as an area that is in a growth market with favorable future prospects. Brisbane is expected to benefit significantly from the multi-billion dollar investment in infrastructure projects, residential developments and upgrade projects underway or upcoming in the next 12 to 24 months. Brisbane s Airport is being upgraded over the next ten years, representing $2.5 billion invested in infrastructure, including the new runway, upgrades to the terminals and airfields, access roads and new buildings and facilities. The new $1.35 billion Brisbane Airport Runway currently under construction is the biggest aviation project in Australia and will give Brisbane the best runway system in the country once it is completed in 2020. The runway will allow the same level of capacity as Hong Kong and Singapore airports and will facilitate the forecasted growth in tourism of $7.6 billion by 2035. The $45 million upgrade of the terminals is under construction and is set to be complete by mid-2015. Additionally, the $150 million Brisbane Airport Conference Centre is scheduled to commence construction in 2015. Various infrastructure projects have been proposed and approved for Brisbane such as the $650 million upgrades to Kingsford Smith Drive that were approved and are due to begin construction in early 2016. The upgrade of several ferry terminals has also been proposed to make them flood resistant such as the Holman Street Ferry Terminal and the North Quay Ferry Terminal. The Queens Wharf Precinct in the CBD, which is expected to begin site works in 2017, will cost an estimated $3 billion and will provide significant economic benefit to the state, preserve heritage listed buildings, and make use of a "number of under-utilized government buildings as well as neglected riverfront land under the Riverside Expressway". plan that includes expansions to existing museums, hotels, new theatres and science facilities as well as a new learning center. Brisbane-based company Graystone has proposed investing an additional $300 million in 19 buildings in the Brisbane Technology Park in Eight Mile Plains. Construction is planned to begin in 2015. The Howard Smith Wharves Hotel and Dining Precinct that has been proposed along the riverside in New Farm will feature a 164-room hotel and a 1500-meter exhibition and convention space with heritage-listed sheds used for cafes and restaurants. The cost is yet to be confirmed. Similarly, the Southbank Riverside building, vacant since the 2011 floods, is proposed to be redeveloped into a dining precinct, with bars, cafes and a rooftop terrace. There is range of smaller projects under construction such as the $80 million Creative Industries Precinct and the $5.2 million Cannon Hill Golf Course. Additionally, the CBD is benefitting from the construction of new retail facilities such as the $5 million redevelopment of 155 Queen Street, which will finalize construction in 2015, and the redevelopment of 170 Queen Street (previously known as the Broadway Mall) into a 4-level retail center which is also due to be completed in late 2015. Many commentators have nominated Brisbane as a capital city tipped to make the most forward progress. The monetary value of investment citywide shows that Brisbane is gearing up for continued population growth, which is expected to translate into price growth in the area. The $2.9 billion RNA Showground Master Planned Suburb, which is currently under construction, is expected to deliver $300 million per annum in economic benefits to Queensland, while supporting Brisbane's future economic and population growth by creating more than 2,000 jobs. Brisbane Cultural Precinct, which has been proposed for Southbank/South Brisbane, is a $1 billion, 20-year master Location Report 8
Infrastructure TransApex Project Project Description Impact The project will connect existing motorways and major arterial roads and divert cross-city traffic out of the CBD. The Brisbane City Council described it as the "biggest urban road project proposed in Australia". Stage 1, the Clem Jones Tunnel ($3.2 billion), was completed in 2010, Stage 2, the Hale Street Link ($338 million), was completed in 2010. Stage 3, the Airport Link ($4.8 billion), was completed in November 2013. Stage 4 will cost an estimated $1.8 billion. Value Status Status Description $10 billion Completed The project was being delivered in 5 stages, Stage 4, Legacy Way commenced construction in 2011 and was completed in mid-2015. RNA Showgrounds Master Planned Suburb Project Description Impact The RNA Showgrounds and King Street redevelopment will include hundreds of residential apartments, hotels, a commercial tower, retail space, a convention centre as well as bars and eateries. The regeneration project is expected to deliver $300 million per annum in economic benefits to Queensland, while supporting Brisbane's future economic and population growth by creating more than 2,000 jobs. Value Status Status Description $2.9 billion Under Construction Construction on the Rydges Hotel in the development started in January 2015. The retail precinct is to begin construction in Mid 2015. Completion is expected for 2026. Location Report 10
Infrastructure Brisbane Airport Upgrades Project Description Impact The new Brisbane Airport Runway currently under construction is the biggest aviation project in Australia and will give Brisbane the best runway system in the country once it is completed in 2020. The runway will allow the same level of capacity as Hong Kong and Singapore airports and will facilitate the forecasted growth in tourism of $7.6 billion by 2035 Value Status Status Description $2.5 billion Under Construction Project to be delivered over the next 10 years. The $1.35 billion new runway is expected to be completed in 2020. The $45 million terminal upgrades are due for completion in mid-2015. Kingsford Smith Drive upgrades Project Description Impact The a major road links Brisbane CBD to the Brisbane Airport, Port of Brisbane, Northshore Hamilton and the Australia TradeCoast area. The upgrade will reduce traffic congestion and improve safety by widening Kingsford Smith Drive from four to six lanes from Harvey Street to Breakfast Creek Road. The staged upgrade of Kingsford Smith Drive aims to improved traffic flow, capacity at intersections, road user safety and pedestrian and cyclist access. Value Status Status Description $650 million Approved Project is due to begin construction in early 2016. Location Report 11
Conclusion Buy 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
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