A DIVISION OF Suburb Profile LOCATION Fernvale is located within southeast Queensland s rapidly growing western corridor. The suburb is located 35 kilometres west of central Brisbane and 20 kilometres north-west of Ipswich. Fernvale is one of the main towns within the Somerset Regional Council which is one of the fastest growing local government areas in southeast Queensland. Despite the strong growth occurring throughout the region, Fernvale still affords residents a country lifestyle surrounded by significant natural assets. POPULATION AND DEMOGRAPHICS The Somerset Region has been identified as one of southeast Queensland s fastest growing Local Government Areas. More than 4,000 new residents moved into the region between the 2001 and 2011 Census. POPULATION TO GROW BY 12,700 TRANSLATED DWELLING DEMAND 4,800 POPULATION PROJECTIONS SOMERSET REGIONAL COUNCIL 2011 TO 2031 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2011 2016 2021 2026 2031 Source: Resolution Research Qld Office of Economic & Statistical Research November 2013 Moving forward, projections supplied by the Queensland Office of Economic and Statistical Research show that the region s population is projected to grow by an additional 12,700 new residents over the 20 years to 2031. Based on these projections, there is likely to be a requirement for an estimated 4,800 new dwellings to be constructed in order to service the needs of the growing population. At the time of the 2011 Census Fernvale was home to just over 2,360 residents, up from 1,550 residents in 2006. The population is overwhelming comprised of families which account for more than 80% of all households. The vast majority of households either own their homes outright or hold their homes under mortgage tenure indicating that the area is a popular market for owner-residents. That being said, the area s attractiveness to renters is solid with rental households accounting for one quarter of all households. WORK NODES 30 MINS RAAF 25 MINS PARKS 10 MINS SHOPS 2 MINS SCHOOL 10 MINS IPSWICH CBD 20 MINS BRISBANE CBD 45 MINS
Taking into consideration forecasts for significant jobs growth over the coming years, it follows suit that the requirement for new dwellings throughout the wider region will heighten considerably. Consistent with the semi-rural nature of the suburb, detached houses dominate the dwelling landscape, accounting for 98% of all dwelling types. Median monthly mortgage repayments are below those recorded throughout Queensland and Australia highlighting the relative affordability of dwellings in this location. Conversely, median weekly rents within Fernvale are higher than those being achieved with Queensland and Australia demonstrating the strength of the local rental market. Fernvale residents typically earn higher incomes than the Queensland and Australia population. At the time of the 2011 Census, both the median weekly household and the median weekly personal incomes of Fernvale were higher than those recorded throughout both Queensland and Australia. EMPLOYMENT POPULAR FAMILY AREA - 80% OF ALL HOUSEHOLDS There are a number of major employment nodes located throughout the western corridor which are rapidly expanding in line with continued industry investment. These nodes include the Royal Australian Air Force base at Amberley, which is a twenty-five minute drive from Fernvale. The Amberley base is the largest RAAF base in Australia employing more than 5,000 persons. Thirty minutes from Fernvale is the Swanbank industrial precinct which is home to a number of major businesses including CS Energy, Theiss, Veolia, Austral & PGH, Energex & Powerlink together with the Swanbank Power Station which is the largest electricity generator in Queensland. More than ten major business and office parks sit within the western corridor region including Citiswich Industrial Park, Synergy Park, the Ebenezer Industrial Area and River Junction. Collectively, these industry parks employ tens of thousands of people and are significant contributors to the local economy. The Ipswich CBD is located twenty minutes from Fernvale and has a workforce which is currently estimated to be in excess of 10,500 persons. A recently released Federal Government report has predicted that Ipswich will be the fastest growing region for jobs in southeast Queensland. The report has forecast that more than 56,000 new jobs will be created in Ipswich by 2025. The town of Springfield, 30 minutes from Fernvale is fast becoming Brisbane s second CBD. On completion, the Springfield CBD will provide an employment base for 30,000 within an area spanning 1.4 million m² of office, retail, educational, health and technology facilities. The large workforce already in place within the region and its surrounds underpins strong demand for dwellings, particularly within emerging communities such as Fernvale which offer affordable, new housing options. Taking into consideration forecasts for significant jobs growth over the coming years, it follows suit that the requirement for new dwellings throughout the wider region will heighten considerably. INFRASTRUCTURE More than $21.7 billion in infrastructure investment across an array of projects, all in varying stages of completion, has been committed throughout the western corridor. These projects have paved the way for significant economic and population growth throughout one of Australia s fastest growing regions. A number of projects have had a critical impact on improving access to both Fernvale and the Somerset
The town of Fernvale is recognised for its strong sense of community which affords its residents a unique quality of life. and the Ipswich CBD. The Ipswich to Toogoolawah service provides Fernvale residents with access to the surrounding towns of Toogoolawah, Esk Coominya, Lowood, Borallon, Muirlea and Ipswich. $21.7 BILLION INFRASTRUCTURE INVESTMENT region as a whole. These major improvements have stimulated both economic and population growth within Fernvale. The Somerset Regional Council continues to deliver key infrastructure into the area in order to cater to the needs of the growing population. Council has an ongoing commitment to improving and expanding the underlying infrastructure within its boundaries, with a particular focus on the rapidly growing suburb of Fernvale. Council s $66.9 million 2013/14 budget details commitments in capital works and expenditure on infrastructure and the development and expansion of the region s recreational and cultural amenity. ACCESSIBILITY & TRANSPORT The Brisbane Valley Highway runs through Fernvale connecting the suburb with the Warrego Highway to the west, the Cunningham Highway to the south and the Ipswich Motorway to the east. The $2.8 billion upgrade of the Ipswich Motorway has been one of the State s most important infrastructure projects which has enabled quick, reliable access into and throughout the Southeast s western corridor. As a direct consequence of this upgrade the Fernvale community has been afforded significantly quicker access to the Brisbane CBD and greater Southeast Queensland. Westside Bus Company operates a number of bus services throughout suburb which provides links to major towns and communities within the Somerset region and Ipswich. The Fernvale to Ipswich service connects Fernvale to the Ipswich Transit Centre at the Riverlink Shopping Centre, the Ipswich railway station COMMUNITY AMENITY The town of Fernvale is recognised for its strong sense of community which affords its residents a unique quality of life. Fernvale has immediate access to some of Southeast Queensland s most valued natural assets including Wivenhoe Dam and Lake Somerset which are both popular tourist destinations for boating, fishing, camping and swimming activities. The 161 kilometre Brisbane Valley Rail Trail which runs through Fernvale draws thousands of tourists each year who utilise the trail for walking, cycling and horse-riding. The Fernvale Indoor Sports Centres incorporates a gym with facilities for indoor cricket, futsal, netball, indoor touch football, junior and indoor sports and cheerleading. Additional sporting and recreational OFFERS AN ACTIVE COMMUNITY LIFESTYLE activities are focussed around the local cricket pitch, skateboard park, tennis courts, children s playground and cycle paths. The Fernvale Futures Complex offers a range of classes to the local community including art classes, yoga and computer courses. Numerous cafes and eateries are located within Fernvale including the Ambience Café, Tree Change Café and the Brisbane Valley Tavern. RETAIL AMENITY The Fernvale Shopping Precinct is located in the heart of town and is anchored by a Woolworths supermarket and home to 15 speciality stores including a
Major hospitals are located nearby in Ipswich and Esk. The Ipswich Public Hospital is located 20 minutes from Fernvale and is a major acute hospital offering services in all health specialities. newsagent, pharmacy, bakery and bottle shop. Plans are in place for a future shopping centre in the town centre which is expected to include a number of speciality retailers and provide commercial space to house new business operations within the area. WELL SERVICED BY RETAIL Every Sunday, the town hosts the popular Fernvale Markets which draw visitors from the greater southeast. The markets feature more than 100 stalls offering fresh produce, arts and crafts, a variety of locally produced goods and family entertainment. Fifteen minutes from Fernvale is the Brassall Shopping Centre which home to Woolworths, Super IGA, Crazy Clarks and over 30 speciality stores including banks and services. A 20 minute drive from Fernvale is the Riverlink Shopping Centre in Ipswich which is the region s newest shopping centre. Riverlink contains major supermarkets Coles and Woolworths and department stores Kmart and Target and more than 130 speciality stores. The Orion Springfield Town Centre, 30 minutes from Fernvale is anchored by BigW, Wooloworths, Aldi and more than 110 speciality shops and restaurants. Also within Springfield is one of Queensland s first Masters Home Improvement stores. The next stage of a major expansion of Orion Shopping Centre in Springfield is underway with plans for a new supermarket, new tavern, 40 additional speciality stores and extra commercial suites. On completion Orion Springfield will be one of the region s largest shopping centres. HEALTH Stellar Medical operates a medical centre in Fernvale which provides extensive medical services to the local community in addition to hosting a range of visiting practitioners in the fields of diet & exercise, physiology, podiatry and psychiatry. The recently opened Fernvale Dental Clinic provides a high level of dental care to residents within the suburb. Major hospitals are located nearby in Ipswich and Esk. The Ipswich Public Hospital is located 20 minutes from Fernvale and is a major acute hospital offering services in all health specialities. The Hospital is currently undergoing a significant $122 million expansion to ensure the needs of the growing population are catered to. St Andrews Private Hospital, also within Ipswich is owned and operated by Ramsay Health Care, Australia s largest most respected operator of private hospitals. Additional medical services are provided at the Esk Hospital and Esk Hospital Dental Clinic a 30 minute drive from Fernvale. EDUCATION The area is well positioned in terms of access to a range of educational institutions. Fernvale and Glamorgan Vale State Primary Schools are both situated within Fernvale with Ipswich Adventist Primary School, Lowood State High School and Ipswich State High School all within a ten minute drive. The Prestigious Ipswich Girls Grammar School and Ipswich Grammar School are both 20 minutes drive from Fernvale. Additional schools servicing the area include St Edmunds Christian College, St Mary s College and Rosewood State High School. A number of early learning facilities operate within the area which cater to the needs of young families residing within Fernvale. Goodstart Early Leaning Fernvale is the principal provider of kindergarten and preschool care in the suburb. Lowood Early Education Centre and the Lowood Child Care Centre and
Preschool are both located within a ten minute drive from Fernvale. A wide array of child care, preschool and day care facilities are on offer within a ten to fifteen minute drive in the areas of Brassall and North Ipswich. The University of Queensland Ipswich campus, the Bremer Institute of TAFE and the University of Southern Queensland Springfield campus are amongst the largest providers of tertiary education within the state. Residents of Fernvale are afforded easy access to each of these institutions via the region s extensive road networks and through the public transport links in place within the region. RESIDENTIAL MARKET FUNDAMENTALS MEDIAN HOUSE PRICE AND SALES VOLUMES 2004 TO 2013 FINANCIAL LYEARS $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 04 05 06 07 08 09 10 11 12 13 Source: Resolution Research, The State of Queensland (Dept of Environment and Natural Resources) November 2013 SALES VOLUME MEDIAN PRICE 70 60 50 40 30 20 10 0 DETACHED HOUSING MARKET Over the past ten financial years, Fernvale s median house price has grown by 5% per annum to reach $350,000 for the year ended June 2013. Detached houses in the area have principally been located on larger, rural blocks with only recent years seeing the introduction of traditional residential allotments 1 into the community. Between the 2012 and 2013 financial years median house values grew by a strong 7%, or by an impressive $24,000. As detailed in the accompanying graph, sales volumes have been declining since 2010, which is considered, in part, to be a function of a lack of new supply entering the market place. This lack of supply is likely to be placing upward pressure on dwelling values indicating a level of underlying demand exists across the market place. VACANT LAND MARKET Consistent with the healthy performance of the detached housing market, median land values have grown by 8% per annum over the past ten financial years to reach $143,000 for the year ended June 2013. In quantum terms, values have risen by 56% (or $81,000). Sales volumes of vacant land allotments move in line with the delivery of new land supporting the notion that there is underlying demand in the market place for vacant allotments and the subsequent construction of new homes. RENTAL MARKET FUNDAMENTALS Fernvale s rental market is currently a strong performer recorded a healthy gross yield of 5.1%. Furthermore, the rental vacancy rate recorded across the suburb in November 2013 was a low 2.4%. To put this into perspective, a vacancy rate of 3% is considered to be indicative of a balanced market where there is a supply / demand balance in place. Evidently, given the low vacancy rate being recorded combined with the high gross rental yields currently being achieved the market is undersupplied with sufficient rental dwellings to service demand. GROSS RENTAL YIELD TIGHT VACANCY RATE 5.1 % 2.4 % 1 Queensland Department of State Development, Infrastructure and Planning.
- AT A GLANCE Fernvale is one of the main towns within the Somerset Regional Council which is one of the fastest growing local government areas in southeast Queensland. / / Projections supplied by the Queensland Office of Economic and Statistical Research show that the region s population is projected to grow by an additional 12,700 new residents over the 20 years to 2031. Based on these projections, there is likely to be a requirement for an estimated 4,800 new dwellings to be constructed in order to service the needs of the growing population. Fernvale s population is overwhelming comprised of families which account for more than 80% of all households. Median monthly mortgage repayments are below those recorded throughout Queensland and Australia highlighting the relative affordability of dwellings in this location. Conversely, median weekly rents within Fernvale are higher than those being achieved with Queensland and Australia demonstrating the strength of the local rental market. There are a number of major employment nodes located throughout the western corridor which are rapidly expanding in line with continued industry investment. The large workforce already in place within the region and its surrounds underpins strong demand for dwellings, particularly within emerging communities such as Fernvale which offer affordable, new housing options. More than $21.7 billion in infrastructure investment across an array of projects, all in varying stages of completion, has been committed throughout the western corridor. A number of major infrastructure projects have had a critical impact on improving access to both Fernvale and the Somerset region as a whole. These major improvements have stimulated both economic and population growth within Fernvale. The $2.8 billion upgrade of the Ipswich Motorway has been one of the State s most important infrastructure projects which has enabled quick, reliable access into and throughout the Southeast s western corridor. As a direct consequence of this upgrade the Fernvale community has been afforded significantly quicker access to the Brisbane CBD and greater Southeast Queensland. Westside Bus Company operates a number of bus services throughout suburb which provides links to major towns and communities within the Somerset region and Ipswich. The town of Fernvale is recognised for its strong sense of community which affords its residents a unique quality of life. Fernvale has immediate access to some of Southeast Queensland s most valued natural assets. The Fernvale community provides residents with a number of sporting clubs and activities including a gym, indoor cricket, futsal, netball, indoor touch football, indoor sports, tennis and children s playgrounds. The Fernvale Shopping Precinct is located in the heart of town and is anchored by a Woolworths supermarket and home to 15 speciality stores including a newsagent, pharmacy, bakery and bottle shop. Every Sunday, the town hosts the popular Fernvale Markets which feature more than 100 stalls offering fresh produce, arts and crafts, a variety of locally produced goods and family entertainment. A 20 minute drive from Fernvale is the Riverlink Shopping Centre in Ipswich which is the region s newest shopping centre. Stellar Medical operates a medical centre in Fernvale which provides extensive medical services to the local community. Major hospitals are located nearby in Ipswich and Esk. The Ipswich Public Hospital is located 20 minutes from Fernvale and is a major acute hospital offering services in all health specialities. The Hospital is currently undergoing a significant $122 million expansion to ensure the needs of the growing population are catered to. The area is well positioned in terms of access to a range of educational institutions. Fernvale and Glamorgan Vale State Primary Schools are both situated within Fernvale with Ipswich Adventist Primary School, Lowood State High School and Ipswich State High School all within a ten minute drive. The Prestigious Ipswich Girls Grammar School and Ipswich Grammar School are both 20 minutes drive from Fernvale. A number of early learning facilities operate within the area which cater to the needs of young families residing within Fernvale. The University of Queensland Ipswich campus, the Bremer Institute of TAFE and the University of Southern Queensland Springfield campus are amongst the largest providers of tertiary education within the state. Residents of Fernvale are afforded easy access to each of these institutions via the region s extensive road networks and through the public transport links in place within the region. Over the past ten financial years, Fernvale s median 2 house price has grown by 5% per annum to reach $350,000 for the year ended June 2013. Between the 2012 and 2013 financial years median house values grew by a strong 7%, or by an impressive $24,000.. Consistent with the healthy performance of the detached housing market, median land values have grown by 8% per annum over the past ten financial years to reach $143,000 for the year ended June 2013. Sales volumes of vacant land allotments move in line with the delivery of new land supporting the notion that there is underlying demand in the market place for vacant allotments and the subsequent construction of new homes. Fernvale s rental market is currently a strong performer recorded a healthy gross yield of 5.1%. Furthermore, the rental vacancy rate recorded across the suburb in November 2013 was a low 2.4%. Evidently, given the low vacancy rate being recorded combined with the high gross rental yields currently being achieved the market is undersupplied with sufficient rental dwellings to service demand. 2 The median house price includes settled sales of both established and new homes. Disclaimer: Whilst this information has been carefully compiled no warranty or promise is made in relation to its accuracy or correctness. The information outlined within this document is a subjective interpretation by our company and should not be relied upon for investment decisions. Interested parties should undertake independent inquiries and investigations to satisfy themselves that any details herein are true and correct. No forecasts are being made by our company about potential capital gains. Any historical price growth information does not imply such growth will occur in the future. This document and the material contained herein are copyright and cannot be reproduced without our permission. This document was compiled in November 2013 and remains current for six months from compilation. The product and pricing information contained within this document is based on price lists, brochures and third party information obtained throughout the course of our research. This information has been verified to the best of our ability but Resolution Research & Marketing Pty Ltd accepts no responsibility for reliance on this information. This information has been prepared independent of our client (nominated above) and at our own direction. NOVEMBER 2013