Population growth and big infrastructure spending in these areas have earned them a place on the list for increased property prices this year.
Property analyst Terry Ryder of hotspotting.com has named his ten best locations for future capital growth.
Queensland figures prominently, with four areas in the list, followed by New South Wales and Victoria with two each, then Western Australia and South Australia, with one location each.
Mr Ryder says the locations are the “pick of the crop’’ and are tipped to outperform the general market.
“These locations are considered to have growth drivers that will achieve capital growth above the norm in the near future,’’ he says.
BRISBANE NORTHSIDE, QLD
The area includes a mix of affordable suburbs and middle-market suburbs, good transport links and is close to major job nodes. Sales volumes are rising in a number of the suburbs.
Typical prices for a house in the area range from $410,000 for a house in Brighton to $536,000 for a house in Nundah.
Mr Ryder says the northern suburbs of Brisbane are “leading the revival of markets across the Brisbane metropolitan area’’.
Tipped for good capital growth by Ryder previously, Cairns is still among his favourites for investment. The area has strong population growth, revival of the tourism industry, increase in overseas flights and major infrastructure spending.
Typical house prices range from $260,000 for a house in Bungalow to $455,000 for a house in Whitfield.
“Cairns is making an economic comeback, with spin-offs for the property market,’’ Mr Ryder says.
“In the 1980s Cairns was one of the stars in the Australian property firmament, boosted by surging tourism and investment from Japan.’’
He says while those glory days had long since faded there were plenty of positive signs Cairns is ready to challenge again, boosted by tourism and investment from China.
CITY OF CANTERBURY, NSW
The City of Canterbury has been one of the standout markets in Sydney’s revival. There has been a major upturn in sales volumes leading to strong price growth. The area is popular for its affordable units.
Mr Ryder says recent changes to Canterbury’s local environment plan are bringing new phase of development on apartments in Canterbury.
Typical house prices range from $570,000 in Lakemba to $948,000 in Earlwood.
CASEY CITY, VIC
The city of Casey is already a key population growth area for Melbourne.
Mr Ryder says it also recently emerged as a property growth market with many suburbs attracting rising sales activity from buyers. He says the Victorian Government’s long-term planning documents identify several suburbs in the city which will play a major role in service delivery and creating employment.
Typical house prices range from $355,000 at Hampton Park to $310,000 in Cranbourne.
Again another region Ryder has tipped for future growth previously. The Redcliffe Peninsula is geographically close to Brisbane but price growth has stagnated for years because there were not adequate transport links.
A long-promised rail connection is closer with the contract awarded in September last year.
Typical house prices range from $351,000 in Margate to in excess of $680,000 at Newport.
ROCKINGHAM CITY, WA
Mr Ryder says the Perth market has moved strongly into a growth phase.
“An area which stands out for its affordability, lifestyle and future prospects is the City of Rockingham,’’ he says. The area, about 50km south of central Perth the area has relatively low prices and small vacancies.
Typical house prices range from $320,000 at Cooloongup to $395,000 at Port Kennedy.
Seaford in the southern seaside suburbs of Adelaide has a good track record of steady price growth.
It is one of South Australia’s strongest population growth areas.
“It’s prospects have grown considerably with the announcement of two pieces of key transport infrastructure, the extension of rail links to the suburb and duplication of the southern expressway which terminates close to Seaford,’’ he said.
Typical house prices start around $336,000 for a house in Seaford, to $380,000 for a house in Seaford Meadows.
SUNSHINE COAST, QLD
The Sunshine Coast market is poised to return to growth for the first time in six years. The market is helped by a number of factors including growth in the tourism industry, balance in supply and demand, price drops have made property more affordable, many fly-in-fly out workers choose to settle on the Sunshine Coast.
House prices typically start at around $320,000 in Nambour to $700,000 in Noosa.
The third largest city in New South Wales has suffered recently from the downturn in the manufacturing industry and job losses at major employer BlueScope Steel.
“But the city has staged a comeback, boosted by a number of major projects.’’
House prices typically start at around $330,000 in Unanderra to $535,000 in Cordeaux Heights.
Original article published at www.news.com.au by Michelle Hele, News Corp Australia, 14/5/2014
Investors Eye Gold Coast Infrastructure Boost
In a huge boost for economic growth and jobs on the Gold Coast, the Queensland government has released details of its four-year, $52.2-billion infrastructure spend and the draft State Infrastructure Strategy, a vision for the State’s infrastructure needs for the next two decades.
These significant investments will play a vital role in growing the health, sciences, technology and innovation sectors necessary for the rapid growth predicted on the Gold Coast, driven by a growing local population.
In prime position to benefit from these investments is Lumina, a premium life sciences commercial cluster within the 200ha Gold Coast Health and Knowledge Precinct, a spokesperson said.
The precinct is already home to established health and science leaders Gold Coast University Hospital, the Gold Coast Private Hospital, Griffith University and Cohort Innovation Space.
State government investment in the precinct’s infrastructure is driving even greater connectivity and opportunities for co-location with hospitals, which is ideal for healthcare services, health tech, and health-related industry stakeholders to connect with clinicians and their patients, the spokesperson said.
One development already taking advantage is Proxima, an $80-million children’s health and education centre of excellence within Lumina.
While Australia, like most developed nations, has an ageing population this is not the case for the Gold Coast and Proxima is set to meet the needs of the growing numbers of children and young families in the region.
It is estimated that there are more than 80,000 children (0-9 years old) currently living on the Gold Coast, with 34 per cent forecasted growth by 2041.
As more than 60 per cent of the Gold Coast’s projected population growth is expected to occur within the northern Gold Coast, Proxima, other developments within Lumina and services in the precinct are ideally placed to meet their medical needs.
“Boosted by favourable market conditions, the next round of the planned developments at Lumina are taking shape, demonstrating the strong demand for life sciences, health and technology on the Gold Coast,” the spokesperson said.
Key drivers of growth
Population and Industry data from the Australian Bureau of Statistics reveal the Gold Coast as one of Australia’s fastest growing regions in both current and future growth.
Two of the key drivers at play are population growth and a deliberate government strategy to drive diverse economic growth and knowledge job creation in the region.
The Gold Coast population is set to increase to around 1.1 million people by 2041. Much of this growth will occur in the northern Gold Coast, notably around the Southport region.
Interstate migration is a key factor, with more Australians relocating to the Gold Coast than any other region. This ballooning growth is creating demand for necessary infrastructure, as well as services to support the population’s needs.
Economic growth is also a key driver, particularly in the northern regions. The Gold Coast City Council’s vision is for diverse economic prosperity, beyond its traditional tourism industry. The region is focused on growing its health, research, education, and innovation economy.
This vision is already having an impact. Global property and investment firm CBRE in its latest analysis of the Life Sciences industry in Australia, reports that there is 10 per cent higher growth in health sector investment on the Gold Coast compared to south-east Queensland, and 14 per cent higher growth than the state overall.
In the professional scientific and technical services sector, there is also a 90 per cent growth forecast centred on the Gold Coast in 2020-21, the gain exceeding the growth rates of 75 per cent in south-east Queensland and 73 per cent in Queensland.
The tertiary education sector on the Gold Coast is being led by Griffith University, with strong enrolments in its Southport campus.
This expanding population and economic investment boom are key drivers for the need for new infrastructure, and with the planned infrastructure enhancements, savvy investors are seeing the opportunities offered by developments like Lumina in the centre of the action.
Infrastructure investment boosts accessibility
In 2020-21 financial year there has already been a $1.15 billion investment boost in Gold Coast infrastructure projects as part of the Queensland Economic Recovery Plan.
But this is just a part of the ongoing public infrastructure investment of more than $6.36 billion.
This has included targeted investments in transport infrastructure (including a $3.4 billion Gold Coast Light Rail extension), addressing accessibility and congestion. The rail extension will ensure convenient, direct public transport access around the Gold Coast and to and from its economic hubs.
Direct access to Brisbane is also being enhanced. There are planned improvements to the “Coomera Connector,” in addition to the existing M1 highway between Brisbane and Gold Coast.
Upon completion, stage one of the Coomera Connector is expected to remove up to 60,000 vehicles from the M1, which will reduce commuter travel times between the Gold Coast and Brisbane.
The airways are opening too, with a $370-million expansion of the Gold Coast airport under way to improve domestic and international airport access
Lumina is positioned to reap the benefits of infrastructure investment
Supported by over $5 billion in infrastructure investment to date, a world-class university, and two hospitals, Lumina is ideally positioned for those seeking to secure a place within its thriving community.
There is space for start-ups requiring coworking desks, and space for growing or established businesses seeking offices, multiple floors or even developers and occupants with a vision for a building of their own. Lumina provides solutions to businesses of all sizes, stages, and specialisations. Invest today in Queensland’s growing and diversifying life sciences, health and technology sectors.
Article Source: www.theurbandeveloper.com
Construction Back to Work After Covid Boilover
Thousands of Victorian construction workers will be back on the tools from next week as building sites reopen under strict public health orders, including a new vaccination mandate.
The move follows a tumultuous two-week shutdown prompted by rising numbers of Covid cases across the sector.
Effective from Tuesday, larger construction sites can have up to 25 per cent of workers onsite and on smaller scale projects up to five workers and a supervisor are able to be onsite.
Workers must have had a least one dose of Covid vaccine and carry an authorised workers permit.
If all workers are fully vaccinated and crib rooms “meet best practice” large-scale construction sites can have up to 50 per cent of their workforce onsite. Projects on the state critical infrastructure list will operate at 100 per cent as long as crib rooms follow best practice guidelines.
Under the government’s new construction sector roadmap, the industry and its workers must adhere to a raft of new measures to ensure they can reopen sites and remain open.
Every construction site in Victoria must have a designated fully-trained Covid marshal to ensure compliance with the chief health officer’s directions.
Prior to reopening, operators will be required to attest that they have implemented the directions and every site will need to have an up-to-date vaccination register available for compliance checks at all times.
Teams of authorised workers will conduct checks to enforce the directions, and penalties will be in place for builders and site operators that do not comply—including site shutdowns for significant or repeated breaches.
“We’ve worked really hard with the industry to ensure they can reopen safely,” Victorian treasurer Tim Pallas said.
“But the message is clear: we won’t tolerate it operating in a way that puts the rest of our community at risk.”
The recent shutdown and protests followed the Victorian government issuing a mandate requiring all construction workers to have had at least their first Covid vaccine dose by September 23.
In ugly scenes, hundreds of angry hi vis-clad “rogue” demonstrators stormed the streets of the locked-down Melbourne CBD sparking the deployment of riot police, who used tear gas and fired rubber bullets to control the hostile crowd.
It was conservatively estimated the abrupt site closures and resulting project delays would cost the industry $1 billion a week but some experts believed the total damage bill could be more than $6 billion.
Australian Constructors Association chief executive Jon Davies welcomed the Victorian government’s decision to reopen construction sites from Tuesday.
“The Victorian government has worked closely with the ACA and other industry stakeholders to determine the best way for the industry to show full compliance with the public health measures and directions,” Davies said.
“A tightening of protocols has been part of the solution, along with vaccination requirements. The key to putting an end to restrictions and lockdowns is vaccination.”
Under the new construction sector roadmap, subject to continued high levels of compliance by the industry, workforce caps will progressively increase.
When 70 per cent of Victoria’s population is double vaccinated, large-scale construction projects will return to 100 per cent onsite workforce. All worksite caps will be removed when the state reaches its 80 per cent vaccination target.
All onsite workers must be fully vaccinated by November 13.
Fully-vaccinated workers can travel between metropolitan Melbourne and regional Victoria in order to work onsite.
Article Source: www.theurbandeveloper.com
Fears Wharf Strikes Will Bring Construction to its Knees
The construction industry has been dealt another blow as industrial action cripples ports across Australia, adding pressure to an already constrained construction materials supply chain.
The Maritime Union of Australia has launched strike action at Patricks Wharfs at Sydney, Melbourne, Brisbane and Fremantle, in a campaign for pay rises and increased union control of manning levels and hiring.
Port Botany wharfies in Sydney will strike next weekend, while Melbourne wharfies plan to strike every second day in October.
Master Builders Australia chief executive Denita Wawn has condemned the industrial action, which she said would paralyse the industry.
“More than $10 billion in building products was imported in the past 12 months and these strikes will hammer the building supply chain which is already under huge pressure,” Wawn said.
“Our members are already experiencing long delays and substantial cost increases due to product shortages and these strikes will make it even harder for building and construction businesses across the country.
“There’s absolutely no doubt these strikes risk hurting the recovery from Covid as governments around the country are harnessing the building industry’s economic multiplier effect to accelerate economic activity and growth.”
Container ships have been waiting up to 18 days at berth in Sydney as a result of the industrial action while negotiations have stalemated once more.
The property industry has underpinned Australia’s Covid-19 economic recovery and produces about 13 per cent of the nation’s gross domestic product.
It has been grappling with steel and timber shortages as a result of global supply chain issues and the tailwinds of the HomeBuilder stimulus package fuelling a construction boom.
According to the Housing Industry Association, 82 per cent of builders are reporting delays with supply or trade, and there is about a 15-week lead time on timber trusses and frames, but this could blow out significantly with port industrial action.
Patrick Terminals chief executive Michael Jovic said the company had been in negotiations with the Maritime Union of Australia since February 2020, and they had an offer on the table for a 2.5 per cent pay rise over the next four years.
The ongoing industrial dispute has reportedly cost Patrick Terminals more than $15 million in revenue, which the union has rejected, while impacting supply chains across the country.
Wharf industrial action was also brought to the Fair Work Commission at this time last year, where claims were made it was delaying supply chains by up to three weeks.
But supply chain disruptions to the construction industry are likely to persist beyond the middle of 2022, according to a global risk survey released recently.
The Oxford Economics survey found one in eight businesses surveyed this month said they had been “severely affected” by supply chain interruptions, and half of respondents said they expected the Delta outbreaks to affect their businesses well into next year.
The Property Council of Australia said labour and material shortages driving up the cost of construction jobs and disruptions caused by the pandemic had delayed projects. Material shortages are at their worst in four decades.
The Australian Competition and Consumer Commission is already investigating reports of price gouging in the shipping industry, and is due to release its annual stevedoring monitoring report in November.
Article Source: www.theurbandeveloper.com
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