Moreton Bay Region – A new train line opens
Our Moreton Bay Region update – transport infrastructure in overdrive
Our Brisbane North Regional Report was released the same week the new Redcliffe Peninsula Rail Line opened to the public. As transport infrastructure is rated as the number one driver of capital growth, the $1 billion rail project has opened up a host of opportunities in the Moreton Bay Region for investors.
It is a proven fact that the median price of suburbs close to new transport infrastructure grows above average for years after completion. Not only do people seek properties close to the rail stations, but businesses in the area thrive as well. This spreads the economic benefits further than the obvious walking distance radius around new stations.
The latest Stockland development to get underway that benefits from the new rail line is Newport. The $590 million development will cover 143 ha of land less than two kilometres from the new Kippa-Ring Station on the Redcliffe Peninsula Rail Line and create 2,000 jobs during the construction phase.
Also within close proximity to the new Mango Hill Station is Westfield North Lakes which is in the final stages of a $140 million expansion that has created close to 3,000 construction jobs. IKEA is the most anticipated retail store to open as part of the expansion. The Swedish furniture giant will open its doors next month in time for Brisbane North residents to spend up big in the lead up to Christmas. The expansion will take the shopping centre to 113,000 sqm of lettable space and take it into the top 8 shopping centres in Queensland by size. Once the extension opens, a further 500 retail positions will be needed to fill the 60 specialty stores and other major retailers such as Kmart, JB HiFi, Rebel Sport and Cotton On.
Transport Infrastructure on steroids
To improve access from the Moreton Bay Region to Brisbane and Brisbane Airport, the Gateway Motorway North upgrade commenced earlier this year. The $1.14 billion project widens 11 kilometres of the road from Bracken Ridge to Nudgee to six lanes. Once completed, traffic flow will improve significantly on this heavily-used piece of road and open up the potential for northern suburbs to expand further as more people realise the commute isn’t so bad.
The timing of the Gateway Motorway North upgrade is just ahead of the completion date of the Brisbane Airport runway duplication which is anticipated to help take the Brisbane Airport to the same capacity as that of Hong Kong and Singapore Airports. Running in parallel to the runway duplication, both international and domestic airport terminals are receiving a series of upgrades and expansions including new security areas and baggage handling systems, new gates, public and staff parking as well as new ePassport smart gates at the international terminal. In total, $4 billion worth of upgrades are planned over the next decade.
Within the airport precinct, there is also a number of hotel and retail projects occurring to capitalise on the increase in visitor numbers. The DFO shopping centre is undergoing an expansion and two new hotels joined to a new Brisbane Airport Conference Centre have begun construction. The $150 million Accor-branded hotels are creating 1,000 construction jobs with another 300-350 operational jobs required once they open in 2017. The hotels will be a 5-star Pullman hotel and a 3.5-star Ibis Hotel connecting to 1,735 sqm of conference, meeting and event-space in the new Conference Centre.
A new university campus to host 10,000 students
We can’t talk about the Brisbane North region without mentioning the announcement of the new University of the Sunshine Coast (USC) campus at Petrie. If you’ve seen a map of the old paper mill site, you may be as excited as we are at the potential for a great university campus. Situated on the banks of the North Pine River, the site is ideally suited for USC. Well-known for its environmentally sensitive approach to development at its main Sunshine Coast campus, USC will undoubtedly have a similar approach in Petrie. It is expected to cater for up to 10,000 students, the same size as the current Sunshine Coast campus, within ten years and feature a comprehensive suite of programs across law, business science, engineering and health.
In terms of capital growth and rental demand over the medium term, we see the majority of suburbs experiencing positive growth of 4-6%pa. However, suburbs with good access to either the rail line or Bruce Highway/Gateway Motorway and close to schools, shops and other services will likely experience growth between 5-7%pa. The current number of detached houses far outweighs other types of stock in the region at 83% yet the portion is trending downwards. In the last financial year, the number of houses approved for construction dropped by 6% from the previous year. In contrast, other residential buildings (townhouses and units) increased by 7.5%. While the statistic is showing a trend to attached dwellings, there is a range of suburbs within Moreton Bay that appeal to different segments of the market. Investors buying close to the new rail line will benefit from a stronger demand in apartment and townhouse stock, while suburbs such as Burpengary and Caboolture will continue to appeal to young families looking for detached dwellings.
To read more on the Moreton Bay region, download our sample report or call 1300 788 905.