Large infrastructure projects are instrumental in shaping cities and driving economic growth.
A few months ago State of Place gave you an update on some of Brisbane’s largest infrastructure projects, and today’s post will involve an in-depth overview of one of Brisbane’s largest employment precincts and the subject of significant future investment – The Brisbane Airport.
The Brisbane Airport Corporation (BAC) currently controls the lease for the airport and has undertaken to direct the operations and future infrastructure investment without government funding, with the ultimate goal of making the Brisbane airport world class. In 2013 alone there was a total spend of more than $256 million on major developments, with a further $2.5 billion planned over the next 10 years, with the ultimate goal of making the Brisbane Airport world class.
BRISBANE AIRPORT FAST FACTS
- Australia’s largest airport in terms of land area
- Second busiest airport in terms of aircraft movement
- Third busiest airport in Australia by passenger numbers
- 21,000 people are currently employed within the precinct, making it the second largest employment node in Queensland
- Brisbane Airport is just 8kms from the CBD (Queensland’s largest employment node)
- Deloitte Access Economics (DAE) estimated the all businesses within the airport precinct contributed approximately $3.3 billion in terms of Gross Value Add to the Queensland economy in 2012-2013.
Source: BAC, DAE
FUTURE PLANNING The BAC plans to fund over $2.5 billion worth of infrastructure over the next 10 years. Projects include a New Parallel Runway, taxiway and apron expansions, terminal expansions/upgrades, road upgrades and a number of new commercial buildings. The most significant component of this upgrade is the New Parallel Runway (NPR) – artists impression featured below- which will provide a second runway parallel to the existing runway. Due to the large land area of the Brisbane Airport, this runway was able to be innovatively designed and positioned, giving Brisbane the most efficient runway system of all major Australian city airports. The NPR will double the current capacity of the airport and future proof Brisbane’s economic development. Upon completion (planned for 2020), the NPR will have created 2,700 jobs during construction and a further 7,800 permanent jobs by 2035. Projections show that by 2035, the runway will be catering for 133,000 more flights than it currently does and deliver a regional benefit of $5 billion per year. The efficient design on the runway will allow the same level of capacity as Hong Kong and Singapore and will make Brisbane’s airport the best in Australia and our gateway to China.
- Forecasts indicate that by 2033/34, some 11.7 million passengers will pass through the International T1 annually.
- Furthermore, by 2033/34, around 37 million passengers will pass through the Domestic T2 annually
- The precinct is predicted to hold 50,000 employees by 2033/34 across a range of industry sectors – up from 21,000 currently.
- Over same period, the airports contribution to the Queensland economy will rise from $3.3 billion to $8.3 billion
Source: BAC, DAE
The expansion of BAP and associated infrastructure (airport link) has and will continue to have a profound impact on shaping the city scape into the future. Already we are seeing rapid gentrification occur along the transport corridors between Brisbane’s CBD and the airport – QLDs two largest employment nodes. Subsequently, already popular suburbs such as Nundah and Hamilton will become the focus of further residential and commercial development due to their direct arterial access to both of these locations. Additionally, areas previously dismissed as ‘airport suburbs’ will start to benefit from increased employment and direct access, and as such will yield higher rental rates and lower vacancy.
As Brisbane’s accessibility improves on a national level, this will pave the way for international business opportunities to expand. Brisbane is the closest Australian capital city to South-East Asia, and the expansion of the new airport brings increased opportunities for Brisbane real estate through this avenue. We will soon start see a greater depth of overseas buyers and investors entering the Brisbane market. Our property prices, our climate and our university opportunities already make Brisbane a top choice for Asian buyers, and increased accessibility will only add to this. As always, Place Advisory would like to highlight the intrinsically interrelated relationship that exists between population growth, infrastructure investment and employment opportunities, with the existence of each supporting long term sustainable growth in the others.
Original article published at www.stateofplace.com.au by Place Advisory 26/6/2014
Aria offer over 1,100 sqm of resort-style amenity at Trellis, South Brisbane apartments
The ground-level homes the Temple of Wellness, designed to be in-keeping with the lush foliage throughout the development
The award-winning Queensland developer, Aria Property Group, are taking the resident amenity to the next level in the latest South Brisbane apartment development, Trellis.
They’re offering residents offer 1,100 sqm of facilities scattered throughout the 13-level, Rothelowman-designed development, crowned by the most impressive amenity of all, the Residents’ Rooftop Club.
That will feature an infinity pool with views across Brisbane, a hot & cold magnesium bath, a lounge, public barbecue areas, and a private dining room.
The ground-level homes the Temple of Wellness, designed to be in-keeping with the lush foliage throughout the development.
A series of gardens line the path to the Temple of Wellness, where residents will walk through the cascading waterfall to a fully equipped fitness centre and meditation zone, home to weights, pilates reformers, cardiovascular equipment and meditation pods.
Aria Living also offers complimentary group yoga and group personal training fortnightly.
Residents at Trellis will also have access to a podcast/boardroom, serving as a multi-use space for working at home. There’s also a Residents’ Wine Cellar.
Apartments in Trellis start from $739,000 for an apartment with two bedrooms and two bathrooms. Three-bedroom apartments are priced from $1,084,000.
Completion is slated for mid-2023.
Article Source: www.urban.com.au
Fed up home buyers take plunge into commercial property
A young woman in her 20s recently snapped up her first property – it was a ground floor shop leased to a jewellery business in South Melbourne.
The buyer, who declined to be identified, paid $900,000 and will earn income equivalent to a 5 per cent yield for her efforts.
Another first-time commercial buyer, Mark Murray, was priced out of the residential market for the type of property he was looking for and instead opted for a two-storey shop in High Street Northcote, in Melbourne’s inner north.
“This is my first property. I want to lease out some of the spaces,” he said.
Both buyers are part of a growing cohort looking at entry-level commercial properties as an alternative to the well trodden path of homeownership.
Sky high residential values – Melbourne’s house prices were up 15 per cent year-on-year in September – and changes to Victoria’s residential rental laws are pushing some would-be owners to look at alternatives.
Buyers are finding that the returns on residential real estate are so poor – with yields in the range of 1 or 2 per cent – that they prefer to buy something that will give them 3 to 5 per cent, which is commercial property.
Barry Novy from Gross Waddell ICR
The state’s new tenancy laws, introduced in March, have put a fresh onus on residential landlords: banning rental bidding, introducing minimum rental standards, changing eviction rules, and allowing modification of homes by renters – all of which has sharpened the difference with commercial property, real estate agents say.
Mr Murray said he planned to live in the upstairs section of his High Street property and turn the downstairs into artists’ workspaces and a recording studio. The shopfront, next to Sweet Life Tattoo, sold through Fitzroys’ Ervin Niyaz.
Mr Murray said it was a privilege to be able to buy something and share it with the creative community. “I’ll definitely earn an income but probably not as high rent as other places.”
The overheated housing market and superior rental returns are driving people towards commercial real estate, Stonebridge Property Group’s Dylan Kilner said.
The Dorcas Street building that sold in South Melbourne has a three-year lease to Unique Diamonds with fixed 3 per cent annual increases. Its outgoing expenses are also paid by the business tenant.
By contrast, residential leases are usually limited to one-year and have no set increases in rent with landlords required to pay outgoing expenses like extra water charges, taxes and maintenance costs.
“The buyer was a first-time investor who opted for an entry level commercial investment rather than a residential property,” Mr Kilner said.
Gross Waddell ICR’s Barry Novy said buyers should do their homework before taking the plunge into commercial property because of differences between the property classes.
“Buyers are finding that the returns on residential real estate are so poor – with yields in the range of 1 or 2 per cent – that they prefer to buy something that will give them 3 to 5 per cent, which is commercial property,” he said.
However, commercial property has a greater risk of long periods of vacancy, depending on market conditions. “You’ve got to be able to cover that,” he said.
Leasing contracts in the sector are also more complicated to negotiate and administer.
“There is also a misconception that if you buy commercial property you have less maintenance. That may or may not be true.”
Article Source: www.brisbanetimes.com.au
Landmark Brisbane Hotel Sells for $50 Million
A Sydney-based hospitality group has swooped on a landmark riverside Brisbane hotel at the northern end of the city’s iconic Story Bridge.
Oscars Hotel Group—owned and operated by brothers Bill and Mario Gravanis—has paid $50 million for the Oakwood Hotel and Apartments.
The 11-storey accommodation asset, on a prominent 2966sq m corner site at 15 Ivory Lane, has been offloaded by Singapore’s Mapletree Investments, which purchased it in 2015 for $48 million.
Formerly the Adina Brisbane Hotel, its sits above the Howard Smith Wharves precinct and Crystalbrook Vincent Hotel—originally The Fantauzzo—that was purchased last year by Syrian billionaire Ghassan Aboud in a $70-million-plus deal.
The four-star Oakwood Hotel and Apartments comprises 162 suites, a bistro, business centre, gym and pool but its new owners are expected to undertake a major revamp to capitalise on its prime location within the popular riverside precinct.
Its latest change-of-hands adds momentum to the rising wave of southern property players seeking geographic diversification due to the impact of Covid-19 lockdowns in New South Wales and Victoria.
Industry experts predict the flow of capital into Queensland’s property sector will continue its groundswell over coming years in the lead-up to the 2032 Brisbane Olympics.
The Gravanis brothers—known as Sydney’s kings of hospitality with a portfolio of more than 30 venues across NSW—made their big move into Queensland in May, snapping up Long Island in the Whitsundays for circa $20 million.
They are planning a new resort project for the island off Airlie Beach.
Oscars Hotel Group was established in 1986 with the acquisition of a single pub in Sydney’s inner-west.
Its purchases of Brisbane’s Oakwood Hotel and Apartments and Whitsunday’s Long Island are part of a strategic expansion to gain northern exposure in the tourism and hospitality sector.
CBRE Hotel’s national director Wayne Bunz negotiated the deal.
Article Source: www.theurbandeveloper.com
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