OUTLOOK A CONTEXT ON BUSINESS, CULTURE, LIFESTYLE AND RESIDENTIAL West End is perfectly positioned to benefit from the balance of inner-city living with commercial, retail and lifestyle amenity alongside the Brisbane River. MARCH 06 A B C D E INFRASTRUCTURE Positioned within walking distance to a wealth of retail and lifestyle amenity, and the Brisbane CBD / Pg 0 INFRASTRUCTURE INVESTMENT West End benefits from an abundance of surrounding existing and proposed infrastructure investment / Pg 05 EMPLOYMENT GROWTH Surrounded by major employment nodes with nearly 47,000 new jobs forecast by 0 / Pg 05 SALE PRICE GROWTH Apartment sale prices have grown by.7 per cent per annum over the last 0 years / Pg 06 NEW PRODUCT PREMIUM New and near-new apartments in West End are showing rental premiums of between 0 and 8 per cent over the postcode median rent / Pg 07 OFFERS A NUMBER OF INDOOR AND OUTDOOR MARKETS A WIDE RANGE OF DINING AND ENTERTAINMENT OPTIONS LOCATED WITHIN WALKING DISTANCE BRISBANE MARKETS WITHIN WALKING DISTANCE TO SOUTH BANK S CULTURAL PRECINCT BRISBANE BAR POP INF EMP West End accommodates all three of the Urbis economics and research fundamentals that make a sustainable suburb Population, Infrastructure and Employment. GALLERY OF MODERN ART (GOMA)
ACCESSIBILITY & WALKABILITY Bordered by the Brisbane River, West End offers a vibrant inner-city village lifestyle within close proximity to Brisbane s major cultural precincts, employment hubs and a variety of leisure options. 8 5 BRISBANE CBD 9 4 WILLIAM JOLLY BRIDGE KURILPA BRIDGE 4 GO BETWEEN BRIDGE MELBOURNE STREET MONTAGUE ROAD 0 less than 00m 0 URBIS OUTLOOK
Traditionally Brisbane s cultural melting pot, West End is home to an extensive range of established restaurants, cafes and entertainment venues. As one of Brisbane s most walkable suburbs, residents of the area can stroll to the Cultural Centre Precinct and the lifestyle amenity of South Bank, while the Brisbane CBD is just over kilometre away. West End is also within close proximity to a number of Brisbane s major health precincts. West End offers a range of recreational options, expansive riverfront parklands and dedicated walkways which run alongside the Brisbane River connecting through to South Brisbane and South Bank. Connectivity in and around West End is also high, being served by a strong network of public transport including bus, train and ferry options. Legend 8 PACIFIC MOTORWAY 6 5 6 5 SOUTH BRISBANE 4 7 8 6 7 9 Infrastructure Entertainment, Shopping & Dining Gallery of Modern Art (GOMA) State Library of Queensland Queensland Museum 4 Queensland Art Gallery Queensland Performing 5 Arts Centre (QPAC) Brisbane Convention 6 & Exhibition Centre Little Stanley Street 7 & Grey Street Dining Precinct 8 Queen Street Mall Boundary Street Retail, Dining 9 & Entertainment Precinct 0 Hardgrave Road Dining Precinct Melbourne Street Dining Precinct The Markets Shopping Centre Treasury Casino 4 Roma Street Transit Centre 5 Brisbane Private Hospital 6 Cultural Centre Bus Station Mater Hospital & Lady Cilento 7 Children s Hospital BOUNDARY STREET 9 7 0 Education 8 Queensland University of Technology 9 Griffith University South Bank Campus 0 Brisbane State High School West End State School Somerville House St Lawrence s College Griffith University Conservatorium 4 of Music JANE STREET Recreation & Green Space 5 South Bank Parklands 6 City Botanic Gardens 7 Musgrave Park 8 Roma Street Parklands 9 Suncorp Stadium 0 Davies Park The Gabba Train Station Bus Station URBIS OUTLOOK
STRUCTURAL UPLIFT ASSESSMENT OF STRUCTURAL UPLIFT THE POSITIVE IMPACT OF A MASTER PLANNED COMMUNITY Structural Uplift is the positive impact that significant urban renewal projects, including master planned communities, have on the surrounding local area, economy and residents both directly and indirectly. SIGNIFICANT DEVELOPMENT MIXED USE (RESIDENTIAL, RETAIL, COMMERCIAL) HIGHLY DIVERSE PRODUCT RANGE The majority of urban renewal projects provide a level of structural uplift, in some way, shape or form. Evaluating structural uplift is undertaken by measuring the change that a development has had on the following assessment gauges: DESIRABILITY OF THE PRECINCT; LIFESTYLE QUALITY OF RESIDENTS; AND CAPITAL APPRECIATION FOR RESIDENTIAL DWELLINGS. Previous examples of regenerated precincts offer an insight into of the benefits of structural uplift to an area and showcase how a precinct will continue to evolve into a new era of urbanism. Based on these prior examples, the degree to which a development satisfies the following criteria provides an indication to the level of structural uplift that can be expected. HIGH AMENITY PROVISION ALIGNS WITH SURROUNDING INFRASTRUCTURE ENABLES ELEMENTS OF TRADITIONAL NEIGHBOURHOODS HIGH LEVELS OF URBAN DESIGN HIGH LEVELS OF WALKABILITY & CONNECTIVITY A REGION CHANGING CATALYST FOR GROWTH EAST VILLAGE, SYDNEY Officially opened on October 04, East Village is a mixed use residential and retail precinct located within the inner city Sydney suburb of Zetland. The precinct offers a new generation full line Coles supermarket, Virgin Active Health Club, child care centre and My Health Medical Centre, as well 50 Specialty shops including restaurants, cafes, bank and fresh food market place. East Village also includes commercial office spaces on the mezzanine levels and 06 low-rise residential apartments on the upper floors. A 6,500sqm Sky Park creates an urban oasis for recreation and relaxation for village residents. THE EMPORIUM, FORTITUDE VALLEY Completed in 005, Emporium is a mixed use residential and retail precinct and is now one of Brisbane s most popular dining, retail and lifestyle centres. The precinct incorporates apartments, 4 commercial buildings, a boutique luxury hotel and a selection of cafes, restaurants and quality fashion retailers. Emporium was a catalyst for development within the surrounding precinct, attracting an additional 40,000m of retail space and 00,000m of commercial space, contributing to the area becoming a significant employment base. 4 URBIS OUTLOOK
By 0, more than 46,000 new jobs forecast within surrounding employment nodes INFRASTRUCTURE & EMPLOYMENT EMPLOYMENT NODES MILTON FORTITUDE VALLEY 4 SPRING HILL CATCHMENT* 47,947 0 CURRENT 49,559 0 FORECAST 97,506 SPRING HILL / FORTITUDE VALLEY 5,67 0 CURRENT 40,0 0 FORECAST 55,70 KM TOOWONG KM KM 500M G H BRISBANE CBD F B C BRISBANE CBD 65,6 0 CURRENT 56,545 0 FORECAST,78 MILTON / TOOWONG / ST LUCIA 8,05 0 CURRENT 9,4 0 FORECAST 57,49 EMPLOYMENT GROWTH 46,78 ST LUCIA E A D 0 CURRENT 85,6 0 FORECAST 4,40 Note: West End Catchment includes West End, South Brisbane and Woolloongabba. Prepared by Urbis: Source: National Institute of Economic and Industry Research (NIEIR) QUEENS WHARF $ BILLION Queen s Wharf is set to be a world-class integrated resort development. Including a mix of six star hotels, retail, dining, entertainment, theatre and convention uses and a major casino. 4 UNIVERSITY OF QUEENSLAND MASTER PLAN (PLAN INCLUDES A NEW PEDESTRIAN BRIDGE FROM ST LUCIA TO BOUNDARY STREET IN ) BRISBANE CONVENTION & EXHIBITION CENTRE $ MILLION EXPANSION HOWARD SMITH WHARVES $00+MILLION HEALTH Princess Alexandra Hospital Mater Private & Public Hospital Queensland s Lady Cilento Children s Hospital A B C D Greenslopes Private Hospital 780 Beds 6,500 950 Beds 7,500 59 Beds,500 678 Beds,000 Prepared by Urbis; Source: Mater.org, Childrens.health.qld.gov.au, svphb.org, greenslopesprivate.com.au, health.qld.ov.au EDUCATION University of Queensland Queensland University of Technology Griffith University E F G H Southbank Institute of Technology 5,8,5 Students,95 47,9 Students,669,9 Students 00 Teaching 0,000 Students Prepared by Urbis; Source: QUT, UQ, Griffith University, SBIT URBIS OUTLOOK 5
RESIDENTAL ANALYSIS The West End Catchment, comprised of West End and South Brisbane, is one of Brisbane s most sought after residential markets, driven by its proximity to the CBD and the Brisbane River as well as high amenity and lifestyle factors. In the West End Catchment, apartments are becoming increasingly prominent and the dwelling of choice in the area. Apartments make up 65.4 per cent of product mix and offer an affordable option. Over the previous 0 years, the West End Catchment has recorded apartment price growth of.7 per cent per annum Also supporting growth and driving demand in the West End Catchment is the abundance of employment, infrastructure and lifestyle amenity offered. As infrastructure and employment opportunities have increased within the catchment over time, so has demand for urban living. This has been demonstrated through the consistent long-term apartment price growth, which recorded an annual median sale price increase of.7 per cent over the last 0 years to September 05. Data from APM PriceFinder for September 05 indicates that the Brisbane apartment market has shown strength in key investment criteria prompting significant interest from interstate investors. From both an owner occupier and investor perspective Brisbane is now significantly more affordable than Sydney with the median apartment price $7,050 less than the median apartment price in Sydney. Urbis provides an independent survey and analysis on the sale of new off-the-plan apartments within Brisbane s inner city. During the 05 September quarter, there were 75 apartment sales within the West End Catchment, registering a weighted average sales price of $69,84. NUMBER OF SALES MEDIAN SALE PRICE ($) The West End Catchment achieves a premium of $09,500 over the Brisbane LGA median apartment price UNIT SALE PRICE GROWTH RATE West End Catchment Sep 005-Sep 05 450 400 50 00 50 00 50 00 50 0 $750,000 $700,000 $650,000 $600,000 $550,000 $500,000 $450,000 $400,000 $50,000 $00,000 $50,000 $00,000 $50,000 $00,000 NUMBER OF UNIT SALES MEDIAN UNIT SALE PRICE 000 SEP 00 MAR 00 SEP 00 MAR 00 SEP 00 MAR 00 SEP 004 MAR 004 SEP 005 MAR 005 SEP 006 MAR 006 SEP 007 MAR 007 SEP 008 MAR 008 SEP 009 MAR 009 SEP 00 MAR 00 SEP 0 MAR 0 SEP 0 MAR 0 SEP 0 MAR 0 SEP 04 MAR 04 SEP 05 MAR 05 SEP $50,000 $ Prepared by Urbis; Source: APM PriceFinder UNIT SALES CYCLE CATCHMENT Sep 995 Sep 05 HALF YEAR PERIOD Prepared by Urbis; Source: APM PriceFinder Note: The West End Catchment includes West End & South Brisbane BRISBANE LGA MEDIAN PRICE QTRLY SYDNEY SD MEDIAN PRICE QTRLY $600,000 $548,500 $500,000 $400,000 $00,000 $00,000 $00,000 SYDNEY & BRISBANE MEDIAN UNIT PRICE COMPARISON Sep 995 Sep 05 Sep-95 Sep-96 Sep-97 Sep-98 Sep-99 Sep-00 Sep-0 Sep-0 Sep-0 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-0 Sep- Sep- Sep- Sep-4 Sep-5 PERIOD (QUARTERLY) Prepared by Urbis; Source: APM PriceFinder & RP Data OFF-THE-PLAN APARTMENT SALES.7% $0 MEDIAN SALE PRICE $70,050 $49,000 PRICE GAP MEDIAN HOUSE VS MEDIAN APARTMENT West End Catchment September 05 $,05,000 PRICE GAP $548,500 MEDIAN SALE PRICE $478,500 Prepared by Urbis; Source: AMP PriceFinder INNER SOUTH SALES OVER THE RD QTR 84 75 WEIGHTED AVERAGE SALE PRICE $607,4 $69,84 INCREASE IN WEIGHTED AVERAGE SALE PRICE ND QTR 05 $56,57 $68,07 Note: The Urbis Inner South precinct includes the suburbs of West End, South Brisbane, Highgate Hill, Dutton Park, Annerley, Fairfield, Yeronga, Woolloongabba & Greenslopes The West End catchment includes the suburbs of West End & South Brisbane Prepared by Urbis; Source: Urbis Apartment Insights Q 05 6 URBIS OUTLOOK
RENTAL ANALYSIS MEDIAN WEEKLY RENTAL GROWTH RATE West End Catchment Sep 05-Sep 05 GROWTH RATE P.A. 6.0% 5.8% 5.8% Prepared by Urbis; Source: Residential Tenancies Authority (RTA) Note: West End Catchment RTA includes the suburbs of West End, South Brisbane and Highgate Hill The West End Catchment has indicated a strong demand for rental properties, with 6.7 per cent of residents identified as renters in the 0 Census. Growing employment and ongoing infrastructure investment within the catchment has helped to drive long-term rental price growth. Potential tenants attach value to: Location Lifestyle Quality MEDIAN WEEKLY RENTS SEPTEMBER 05 West End Catchment vs Brisbane LGA BRISBANE LGA CATCHMENT RTA NEW & NEAR-NEW BRISBANE LGA CATCHMENT RTA NEW & NEAR-NEW BRISBANE LGA CATCHMENT RTA NEW & NEAR-NEW $0 $40 $470 $400 $500 $600 $500 $750 $,000 Prepared by Urbis; Source: Residential Tenancies Authority (RTA), realestate.com, external sources Note: West End Catchment New and Near-New includes the suburbs of West End and South Brisbane. West End Catchment RTA includes the suburbs of West End, South Brisbane and Highgate Hill Established apartment product in the West End Catchment achieved a weekly rental premium of per cent for onebedroom product when compared to the Brisbane LGA benchmark for the September quarter 05. Two and three-bedroom product also achieved a premium over the Brisbane LGA benchmark at 5 per cent and 50 per cent respectively. New and near-new apartment product generally achieves a weekly rental premium in comparison to established apartment stock due to the value attached to apartments offering modern layouts and amenity. From a rental yield perspective, Brisbane also has recorded the highest return for investors for the September 05 quarter at an indicative 4.7 per cent gross rental yield, compared to.9 per cent in Sydney and 4. per cent in Melbourne. GROSS RENTAL YIELD CITY COMPARISON NEW AND NEAR-NEW WEEKLY RENTAL PREMIUMS OVER ESTABLISHED PRODUCT West End Catchment Sep 05 4.7%.9% 4.% BRISBANE SYDNEY MELBOURNE 8% 0% % Prepared by Urbis; Source: AMP PriceFinder AVERAGE WEEKLY HOUSEHOLD INCOME COMPARISON Prepared by Urbis; Source: RTA, realestate.com.au Note: West End Catchment New and Near-New includes the suburbs of West End and South Brisbane Note: West End Catchment RTA includes the suburbs of West End, South Brisbane and Highgate Hill $,87 Prepared by Urbis; Source: ABS Census BRISBANE LGA $,69 URBIS OUTLOOK 7
Brisbane Level 7, Albert St Brisbane QLD 4000 07 007 800 This publication is prepared on the instruction of Link Realty NSW Pty Ltd and is not suitable for use other than by the party to whom it is addressed. As the publication involves projections and assumptions it can be affected by a number of unforeseen variables. The forecasts and assumptions are a prediction and whilst Urbis has made every effort to ensure that the forecasts and assumptions are based on reasonable information, they may be affected by assumptions that do not necessarily eventuate or by know, or unknown, risks and uncertainties. It should be noted that past performance is not necessarily a reliable indication of future performance. The information in the publication does not represent financial advice and should not be regarded as such. It has been prepared without taking into account your financial situation or investment objectives. You should consider the appropriateness of the information in regards to your current financial situation or needs. Urbis accepts no responsibility for the accuracy or completeness of any such material. The information is subject to change without notice and Urbis is under no obligation to update the information or correct any assumptions which may change over time. This study has been prepared for the sole use of Link Realty NSW Pty Ltd and is not to be relied upon by any third party without specific approval from Urbis. This publication is subject to copyright. Except as permitted under the Copyright Act 968, no part of it may, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) be reproduced, stored in a retrievals system or transmitted without prior written permission. Enquires should be addressed to the publishers. / BPE040