Urbis Outlook - Positive Real Estate · JAN 2012 Urbis Outlook 1 QUICK DOwNLOAD South Brisbane...

A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANEResearch Update From Australia’s Leading Property Advisors

Urbis OutlookJAN 2012

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CONTENTS QUICK DOwNLOAD 1

SUBURB INSIgHTS 4

FUTURE VISION OF SOUTH BRISBANE 5

EXISTINg AND FUTURE INFRASTRUCTURE 6

INNER SOUTH COMMERCIAL MARKET 7

SOUTH BRISBANE COMMERCIAL MARKET 8

SOUTH BRISBANE PRECINCTS MAP 9

SOUTH BRISBANE EDUCATIONAL INSTITUTIONS 10

SOUTH BRISBANE RETAIL AND CULTURAL DISTRICT 11

RENTAL MARKET INSIgHTS 12

DEMOgRAPHIC INSIgHTS 15

SHIFTINg DEMOgRAPHIC 16

MARKET INSIgHTS AND OUTLOOKS 17

BRISBANE LgA RESIDENTIAL MARKET OVERVIEw 18

SOUTH BRISBANE CATCHMENT RESIDENTIAL MARKET OVERVIEw 19

MACRO-ECONOMIC INSIgHT 21

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A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANEResearch Update From Australia’s Leading Property Advisors

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South Brisbane Rental Premiums1-Bd 2-Bd

South Brisbane $504 $670

West End $422 $494

Fortitude Valley / Bowen Hills $360 $449

Hamilton $357 $494

South Brisbane Premium OverWest End 19% 36%

Fortitude Valley / Bowen Hills 40% 49%

Hamilton 41% 36%

•Thesampleofonmarketrentalpriceswascalculatedusingstandardpropertiesandremovingpropertieswhichwereconsideredpremium.Premiumpropertiescouldberemovedonthebasisofaspect,squaremetresandamenities.

•PreparedbyUrbisandsourcedfromRealestate.com.au

South Brisbane apartments generate a rental premium over comparable products in the suburbs of west End, Fortitude Valley and Hamilton.

South Brisbane rental premium

South Brisbane key factsEstablished Commercial Office Precinct• 300,000squaremetresofcommercialofficespace,equatingtospacefor30,000whitecollarworkersGrowthintotalstocklevelsof12percentfrom2004to2011

• VacancyrateinSouthBrisbaneof4.3percentduringtheSeptember2011quartercomparedto7.4percentintheBrisbaneCBD....seepage7forfurtherdetails

Surrounded by Educational Institutions• 12educationalinstituteswith80,000students

• KeydevelopmentofGriffithUniversityConservatoriumandofSouthBankTAFEEducationandTrainingPrecincts....seepage10forfurtherdetails

Proximity• 450metresfromBrisbane’sCentralBusinessDistrict,withsixbridgeslinkingSouthBrisbanetotheCBD

• InadditionSouthBrisbaneresidentshavetheoptionoftrain,busandferryservicesthatprovideefficientpublictransporttotheCBDandsurroundingnodes....seepage9forfurtherdetails

Lifestyle and Cultural Amenities• 275bars,restaurantsandcafes

• 53fashionboutiques

• 157SpecialityStores

• QueenslandCultureCentreincludingtheGalleryofModernArtandQueenslandMuseum....seepage11forfurtherdetails

Useable & Efficient Infrastructure• Thereiscurrently$2.7billionworthofexistinginfrastructureinSouthBrisbane,withafurther$1.3billioninthepipelineforfuturedevelopment.

• Currentuseableinfrastructureincludes;GoBetweenBridge,GOMAandBrisbaneConventionandExhibitionCentre....seepage6forfurtherdetails

On The Market Rental Prices ONE BEdROOM ANd TWO BEdROOM APARTMENTS


•PreparedbyUrbisandSourcedfromRealestate.com.au

A RESIDENTIAL MARKET AND ECONOMIC CONTEXT ON SOUTH BRISBANE

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Shifting demographicThemostprevalentagedemographicinSouthBrisbaneisresidentsaged20to29years,equatingto34.1percentofthetotalpopulationin2010.ThesameagedemographicisequallyasdominantinthecatchmentareaandInnerBrisbane.SouthBrisbane’scloseproximitytoBrisbane’sCBD,keyeducationalfacilitiesandemploymentnodesisappealingtoGenerationYandXdemographics.Inadditiontothelocation,SouthBrisbanehasawealthofexistinginfrastructureincludingsixbridgesconnectingittotheCBDandanewlydevelopmenttransitnetwork,whichprovidesconvenientaccesstothesekeynodes.

Inthenearfuture,agreaterfocuswillbeneededtoattractolderGenYswhoarenowmovingintoyoungfamilydynamicsandaremoreaccustomedtodensercommunitiesbutareconsciousofthevalueneedtobederivedfromtheirrealestateinvestment

The focus therefore for investors and developers is to be able to capitalise on the opportunities these shifting trends present.

Infrastructure and ProjectsSouthBrisbane’s$2.5billionofexistinginfrastructurehascausedtheareatogrowfasterthananyotherinnercitylocalityoverthepast20years.Thesuburbsrapidgrowthcanbeattributedtothediverseandconcentratedinvestmentfrompublicandprivateentities,whichcontinuedriveorganisationstofurtherinvestandtakeadvantageofanestablishedandfunctioningframework.

As the cultural, entertainment and business capital of South East Queensland, investors are persistently devoting more capital funds for future infrastructure.

OneofthedistinctiveadvantagesofSouthBrisbaneisthattheexistingandfutureinfrastructureisdesirableanduseable.Capitalinvestmentininfrastructurehasbeendirectedtoupliftandbenefittheprimecultural,educationalandretailnodesinthesuburb.LargecapitalinvestmentshaveredevelopedtheSouthBankSouthernRestaurantPrecinct,ConventionandExhibitionCentreandSouthBankInstituteofTechnology.Furtherinvestmentisstillfocusedonincreasingpublictransport,withthefuturedevelopmentofaMassTransitCentreandtheupgradeoftheBusway’sthroughoutSouthBrisbane.

OpportunitiesSouthBrisbaneisaninnercitysuburbthathastakenadvantageofitsproximitytotheBrisbaneCBDanddevelopedintotheculturalandretailhubofSouthEastQueensland.SignificantinfrastructurehasbeeninvestedintodevelopingtheQueenslandCulturalCentre,BrisbaneConventionandExhibitionCentreandtheGreyandLittleStanleyStreetretailprecincts.

Inrecentyears,SouthBrisbanehasregisteredsubstantialgrowthincommercialofficespace.SouthBrisbane’scloseproximitytotheBrisbaneCBDhasenabledthedevelopmentofitsbusinessdistrict,withanumberoflargemultinationalfirmsresidinginthesuburb.SouthBrisbane’sreputationwasfurtherenhancedwithSuncorpBankingandInsuranceandtheABCrecentlydecidingtorelocateintoSouthBrisbaneafterexhaustiveselectionprocessesrevealedthesuburb’samenitiesandlocationmetallcriteria.

The supply of residential development in South Brisbane has been limited in recent years with the global financial crisis and the subsequent lack of finance available, deferring a number of developments.

ThelackofsupplyhasbeencontrastedbyhighdemandfromindividualswantingtoresideinSouthBrisbane,causingmediansaleandrentalpricestotradeatapremium.WithsupplyscarceanddemandforSouthBrisbanehighthereisanopportunityfornewresidentialdevelopmentstocapitaliseonthisimbalance.


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Residential Market InsightsThereisnodisputingthat2011hasbeenatoughperiodfortheQueenslandpropertymarketandtheAustralianeconomyingeneral.However,itiscertainlynotalldoomandgloomforAustralia’spropertymarketmovingforward.ParticularlyinBrisbanewherewearemovingintooneofthemostopportunisticbuyingmarketsBrisbanehomebuyersandinvestorshaveexperienceinmanyyears.

we are moving into one of the most opportunistic buying markets Brisbane home buyers and investors have experience in many years.

Despitemediadrivenfear,takingalong-termapproachtoBrisbanepropertyitisreasonabletopredictwehavereachedthebottomofourpropertycycle.Globaleconomicuncertaintyremains,butAustraliaandQueenslandinparticularholdanenviablepositionofstableeconomicfundamentalsandaboomingresourcesector.Thisstand-outperformanceportraysBrisbanepropertyasanexceptionallysecureinvestmentoptioninternationally.

ThemediansalepriceforahouseintheSouthBrisbanecatchmentwas$606,000fortheSeptember2011halfyearbasedon80settledtransactions.Themedianhousepriceovertheyearhasincreased2.7percent,againsttheBrisbanetrend,reflectingdemandforresidentialpropertywithinthecatchment.Lookingatthecatchmentslongtermresults,theregionregisteredonaveragea5.0percentincreaseperannumoverthepastfiveyearswhileoverthepast10yearsthegrowthratewasat8.5percent.

TheSouthBrisbaneCatchmentregisteredamedianapartmentpriceof$484,250basedon100settledtransactionsattheendoftheSeptember2011halfyear.

The median apartment price over the past five years has on average increased by 6.7 per cent per annum, outperforming houses in the catchment and the greater Brisbane residential market.

Rental Market InsightsTheSouthBrisbanerentalmarketisundersuppliedwiththenumberofpeoplewantingtoresideinthesuburbsubstantiallyoutweighingtheavailableproductcurrentlyonthemarket.

The demand for South Brisbane coupled with this limited supply has enabled South Brisbane rental prices to trade at a premium over the surrounding suburbs.

OnebedroomapartmentsinSouthBrisbaneregisterarentalpremiumovercomparablepropertiesinWestEnd,FortitudeValley/BowenHillsandHamilton.OnebedroomapartmentsinSouthBrisbaneattracta19percentpremiumoverWestEndand40percentpremiumoverFortitudeValleyandBowenHills.

ComparabletwobedroomapartmentsinSouthBrisbanealsogenerateahigherrentalpremium.TwobedroomapartmentsinSouthBrisbaneattractapremiumof36percentoverWestEndandHamiltonandasignificant49percentoverFortitudeValley/BowenHills.

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© 2011 PSMA Australia Ltd, Sensis Pty Ltd. Australia Bureau of Statistics. Produced by Urbis Pty Ltd ( December 2011 )

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SOUTH BRISBANE – SUBURB INSIgHTSSouth Brisbane – the next Brisbane CBd South Brisbane has quickly evolved from an older inner city suburb into the South East Queensland’s most significant cultural, educational and commercial precinct.

ThesuburbofSouthBrisbaneislocatedlessthanonekilometrefromBrisbane’sCentralBusinessDistrict(CBD)andoffersanidyllicmixofmediumandhighriseresidentialbuildings,thrivingcommercialofficespaceandboutiqueretailprecincts.SouthBrisbanealsocontainsanumberofmajoreducationalfacilitiesandishometoQueensland’slargestculturaldistrict.

SouthBrisbaneisoneoftheoldestsuburbsinBrisbanewithlandsalesfirstrecordedduringthe1840’s.Thesuburb’sprimelocationonthebanksoftheBrisbaneRiverprovedashortcomingtoitsearlyresidentsastheywereunabletofindanefficientwaytocrosstheriver.ThedevelopmentoftheVictoriaBridge

providedameansofcrossingtheBrisbaneRiverandprovidedtheresidentsofSouthBrisbanewithadirectlinktotheBrisbaneCBD.

Duringthelate1980sSouthBrisbanebeganitsdevelopmentintotheculturalcapitalofSouthEastQueensland.ThedevelopmentoftheQueenslandCulturalCentrewasinitiatedwiththeconstructionoftheQueenslandArtGalleryin1982.Inrecentyears,theCulturalCentrehasbeenredevelopedandmodernisedandencompassesfiveseparatefacilitiesincludingtheQueenslandGalleyofModernArt.ThereputationofSouthBrisbaneasaculturalprecinctwasfurtherenhancedbythedevelopmentoftheSouthBankParklandsfortheWorldExpoin1988.TodaySouthBankhasgrownintoBrisbane’spremierdestinationwithopenparklandsintegratedwithrestaurantandentertainmentfacilities.

ThegrowthofSouthBankfacilitatedthedevelopmentofLittleStanleyStreetandGreyStreet,twopremierretailprecincts.

Theprecinctsrecentlyunderwenta$200millionredevelopmentandarenowbrimmingwithbars,restaurantsandboutiqueretailstores.TheprecinctshavebeenfurtherenhancedbytheconstructionofanumberoflargecommercialofficebuildingswhichhasexpandedintoMelbourneStreetandthesurroundingarea.

with a large volume of planned infrastructure and commercial developments in the pipeline, South Brisbane will continue maturing into the next Brisbane CBD.


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Key Rejuvenation Strategies in the Kurilpa Precinct • MixedusedevelopmentwithinthePrecinctisenvisionedtostimulatetheretailboulevardsofMelbourneStreetandMontagueRoad.Streetscapeupgradeswillencouragemovementandcomfortbydeliveringunparalleledpedestrianandcyclistpathways,providingaccesstotheCBDviathenumerousbridgesthatcrosstheriver.

• HopeStreetwillbecomeapremierdestinationfordining,entertainmentandretailamenitiesaddingtothealreadyabundantoptionsforSouthBrisbaneresidents.

• FishLanewillbedevelopedintoavibrantactivelanewayreflectingtheeclecticcultureofSouthBrisbane.

• TheParamalatlandholdingsonthebankoftheBrisbaneRiverareplannedasamixedusedevelopmentwithaniconicbuildingandlandmarkonthesiteservingasahistoricalreminderforSouthBrisbane.Thedevelopmentwillopenthewaterfronttoresidentsbyprovidingpedestrian,cyclingandretailoptions.

SOUTH BRISBANE RIVERSIDE RENEwAL STRATEgy The future vision of South Brisbane

Kurilpa TheKurilpaPrecinctcoversanareaofapproximately36hectaresatthenorthwesternendofSouthBankenvisionedtobethePrimaryActivityCentreofSouthEastQueensland.

ThePrecinctisintendedtobedevelopedintoaworldclassculturaldistrictwithacomplementarymixofcommercial,retailandcommunitydevelopment.

sOuTH BrisBaNE rEaCHSouthBrisbaneReachistheentertainment,culturalandeducationalcapitalofBrisbane.WithasignificantamountofdevelopmentintheSouthBrisbaneReach,theprecinctwillremainlargelyunchangedwithanemphasisonmaintainingitsrenownedopenspacesandamenities.

FuturedevelopmentwillbecentredonunlockingthepotentialbetweentheSouthBrisbaneReachandsurroundingprecincts.TheSouthBrisbaneReachcontainsfoursignificantpublictransportnodeseachboundbyotherprecincts,withsubstantiallatentdevelopmentzones.Bydevelopinginter-precinctpublictransportfacilitiestheseareaswillbelinkedtothepublictransportnodesoftheSouthBrisbaneReach.

Source:SouthBrisbaneRiversideRenewalStrategy–FinalDraftJuly2009


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State library of Queensland, Art Gallery, Museum, Cultural Centre, QPAC and South BankGriffith University Conservatorium Brisbane State High ImprovementsConvention and Exhibition CentreGoodwill BridgeGo Between BridgeSouth Bank Entry UpgradeSouth East Busway including Cultural Centre and South Bank Stations and Tunneling worksKurilpa Bridge

GOMA1

2345678

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1011121314151617181920

21Busway Upgrade including Melbourne St to Adelaide StSouthbank Tafe-PPPUpgrade water play park-SouthbankRedevelopment of Southbank Southern Restaurant PrecinctGlenelg/Grey St intersection upgradeThe Wheel of Brisbane, SouthbankBCEC ExtensionMelbourne,Grey,Merivale and Cordelia St upgradesMusgrave,Davies and Kurilpa Point Park upgradesSouth Brisbane Train Station upgrade

Replacements QAS Training Facility222324252627282930

The Edge,Cultural AuditoriumStormwater Harvesting and Reuse Centre SouthbankSouthbank Butterfly House developmentABC Headquarters Collins Place-Southbank Transit Site DevelopmentSouthbank Corporation Marina(69 Berth) and associated worksCity Cat terminal upgradeArts precinct extensionQPAC upgrades

SOUTH BRISBANE INFRASTRUCTURE $4 BILLION

EXISTINg AND FUTURE INFRASTRUCTURE $4B of useable and desired infrastructre

South Brisbane Infrastructure InvestmentEST. vALUE

Existing Infrastructure $2,721,580,000

Infrastruture Projects Underway $356,980,000

Planned Future Infrastruture $302,000,000

Possible Future Infrastruture $640,000,000

Total $4,020,560,000•SourcedfromUrbisandpreparedbyUrbis

SouthBrisbane’s$2.5billionofexistinginfrastructurehasenabledtheregiontogrowfasterthananyotherinnercitylocalityoverthepast20years.Thesuburbsrapidgrowthcanbeattributedtothediverseandconcentratedinvestmentfrompublicandprivateentities,whichcontinuetodrivefurtherinvestment.Asthecultural,entertainmentandbusinesscapitalofSouthEastQueensland,investorsaredevotingmorecapitalfundsforfutureinfrastructure.

There is currently over $2.7 billion worth of existing infrastructure already in South Brisbane, with a further $1.3 billion in the pipeline for future development.

South Brisbane InfrastructureINfRASTRUCTURE STATUS vALUEState Library of Qld, Art Galley, Museum, Cultural Centre, Existing $850,000,000

Convention and Exhibition Centre Existing $203,000,000

Go Between Bridge Existing $338,000,000

GOMA Existing $300,000,000

Busway Upgrade Existing $250,000,000

South Bank Tafe Existing $325,000,000

Redevelopment of Southbank Southern Restaurant Precinct Existing $100,000,000

BCEC Extension Commenced $130,000,000

Southbank Butterfly House Redevelopment Commenced $50,000,000

Southbank Transit Centre Site Redevelopment Planned $250,000,000

Arts Precinct Extension Possible $225,000,000

Future Mass Transit Possible $315,000,000

QPAC Upgrade Possible $100,000,000

•SourcedfromUrbisandpreparedbyUrbis


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The Brisbane Fringe office market has experienced strong tenant demand in recent times with firms now searching the fringe market for new office space.

1.BrisbaneFringeInnerSouthMarketIncludestheSuburbsofSouthBrisbane,WestEnd,Woolloongabba,KangarooPoint,EastBrisbaneandGreenslopes

•PreparedbyUrbisandSourcedfromPropertyCouncilofAustralia

1.BrisbaneFringeofficemarketincludesInnerSouth.Milton,SpringHill,UrbanRenewalandToowong•PreparedbyUrbisandSourcedfromPropertyCouncilofAustralia

GrOwTH iN THE iNNEr sOuTH is dramaTiCally HiGHEr THaN surrOuNdiNG marKETTheInnerSouthofficemarketincludesthesuburbsofSouthBrisbane,WestEnd,Woolloongabba,KangarooPoint,EastBrisbaneandGreenslopeswiththemajorityofofficespaceinSouthBrisbane.TheInnerSouthmarkethasexperiencedconsiderablegrowthinthetotalofficestockwhencomparedtotheBrisbaneCBDandsurroundingBrisbaneFringemarkets.TheInnerSouthrecordedanannualaveragegrowthfrom2004to2011of12percent,equatingtoagrowthoftotalofficestockofalmost18,000sqmperyearovertheperiod.

iNNEr sOuTH vaCaNCy raTEs CONsisTENTly lOwEr THaN OTHEr BrisBaNE friNGE marKETsDespitetheinfluxofstockintotheInnerSouthfringemarketthevacancyfactorhasremainedbeneaththeBrisbaneCBDandotherBrisbaneFringemarkets.Thetotalvacancyratewas7.2percentforthehalfyearendingJuly2011,equaltovacancyraterecordedforthesameperiod2010.Thevacancyfactorwaslessthanthe7.4percentrecordedintheBrisbaneCBDforthesameperiodandconsiderablylessthanthevacancyrateforthesurroundingBrisbanefringesublocales.ThisillustratesstrongdemandfornewofficestockintheInnerSouthMarketandthatnewstockisreceivedpositivelybyfirms.

iNNEr sOuTH vaCaNCy raTE OuTpErfOrm ausTraliaN CBd’sTheBrisbaneInnerSouthtotalvacancyfactorwas7.2percentforthehalfyearendingJune2011,lowerthanthemajorityofAustralianCBDofficemarkets.InadditionthedirectvacancyfactoroverthesameperiodfortheInnerSouthmarketwas5.1percent,considerablylessthanallthemajorAustralianCBDs.ThedirectvacancyandtotalvacancyfactorsintheInnerSouthmarketdemonstratethelimitedavailabilityofstockandthedesirabilityofthelocation.

TheInnerSouthhasbeenabletokeepvacanciesatalowerlevelduemajorpre-commitmentsonfuturestock,includingtheABCandSuncorpinSouthBrisbane.TheInnerSouthfringemarketcontainsalargeproportionofnewstockmuchofwhichisGradeA,whichhasexperiencedtightvacancyratesoverthepastsixmonths.ThelimitedsupplyofGradeAstockhasdrivendemandandrentalpriceshaveincreasedaccordingly.a

INNER SOUTH COMMERCIAL MARKET Inner south registered the lowest vacancy rate in inner Brisbane

Growth Rates of Total Office Stock INNER SOUTH, BRISBANE CBd, SPRING HILL ANd MILTON

Vacancy Rates of Brisbane CBD and Fringe SublocalesJUNE QUARTER 2011

•PreparedbyUrbisandSourcedfromPropertyCouncilofAustralia

Vacancy Rates and Square MetresINNER SOUTH ANd AUSTRALIAN CBd OffICE MARKET

dIRECT vACANCy fACTOR (%)

TOTAL vACANCy fACTOR (%)

Brisbane Inner South 5.1% 7.2%

Sydney CBD 8.4% 9.3%

Melbourne CBD 5.2% 5.8%

Canberra CBD 11.0% 13.3%

Brisbane CBD 6.6% 7.4%

Perth CBD 6.8% 7.8%

Total Australian CBD 7.4% 8.4%


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Past 4 Yrs

12 AXA Australia (Finance & Incusrace) - 1,400m2

13 Downer EDI (Mining) - 1,386m2

14 Leighton Contractors ( Construction) - 1,000m2

15 Sinclair Knight Merz (Engineering/Mining) - 12,000m2

16 Macmahon Holdings (Mining) - 3,494m2

17 ABC (Communications Services) - 10,000m2

18 Kellogg Brown & Root (Engineering) - 8,255m2

1 Ausenco 2 Origin Energy (Supply) - 5,666m2

3 MWH Global (Engineering) - 2,800m2

4 South Central (Various) - 3,208m2

5 Centrelink (Community) - 3,600m2

6 Stockland (Property) - 6,204m2

7 Theiss (Engingeering) - 3,614m2

8 Roche Mining (Mining) - 6,660m2

9 Colorado (Retail Trade) - 5,800m2

10 QLD Health (Government) - 2,700m2

11 Macarthur Coal (Mining) - 1,800m2

(Engineering) - 9,000m2

SOUTH BRISBANECOMMERCIAL OFFICE CONSUMPTION - PAST 4 YEARS

SOUTH BRISBANE COMMERCIAL MARKET 300,000sqm of commerical office space

South Brisbane has developed into one of the largest commercial precincts in South East Queensland with a number of multinational companies relocated into the commercial office space in South Brisbane.

Toclarify,thenextsectionwillexaminetheSouthBrisbanecommercialmarketindetail.WithinSouthBrisbane,thereisover300,000squaremetres(sqm)ofcommercialofficespace,equatingtoenoughfloorspacefor30,000whitecollarworkers.TheconstructionofanumberoflargecommercialbuildingsinSouthBrisbanecoupledwiththesuburbscloseproximitytotheCBDhasseenitasanideallocationformanyfirms.ThesefirmshavebeenconcentratedaroundthekeycommercialprecinctsofMelbourneStreet,GreyStreetandMontagueRoad.Anumberofkeytenantsareillustratedinthetableofbelow.

South Brisbane Commercial Office Market

TENANT INdUSTRy NEW AddRESS NEW SUBURB AREA LEASEd (m2)Suncorp Insurance and Banking Cnr Grey and Vulture Streets South Brisbane 33,600

Ausenco Property and Business Services 144 Montague Road South Brisbane 14,216

Sinclair Knight Merz Property and Business Services Cnr Melbourne Street & Merivale Street South Brisbane 12,000

Australian Broadcasting Company Communication Services Cnr Grey & Russell Streets South Brisbane 10,000

Kellogg Brown & Root Property and Business Services 199 Grey Street South Brisbane 8,255

Roche Mining Mining 100 Melbourne Street South Brisbane 6,600

Colorado Retail Trade 100 Melbourne Street South Brisbane 5,800

Origin Energy Electricity, Gas and Water Supply 144 Montague Road South Brisbane 5,666

Theiss Property and Business Services 10 Browning Street South Brisbane 3,614

Rivercity Motorway Construction 140 Melbourne Street South Brisbane 3,509

Macmahon Holdings Mining Cnr Melbourne Street & Merivale Street South Brisbane 3,494

Abigroup Contractors Construction Stanley Street South Brisbane 3,200

MWH Property and Business Services 35 Boundary Street South Brisbane 2,800

Queensland Health Government Administration & Defence 100 Melbourne Street South Brisbane 2,700

Macarthur Coal Mining 100 Melbourne Street South Brisbane 1,800

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SOUTH BRISBANE’S CULTURAL, EDUCATIONAL & RETAIL PRECINCTS Key precincts within walking distance to CBd

South Brisbane is located in close proximity to key educational, retail and cultural nodes. The suburb’s location and amenities is the principal driver for its high residential and commercial demand. South Brisbane is Located in Close Proximity to Key

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SOUTH BRISBANE AMENITIES BRISBANE, QUEENSLAND


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Scale 1:7,500 when printed at A3LegendArt Galleries, Theatres, Museums and Entertainment

Convention Centre

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Brisbane Convention

Centre

MusgravePark

BrisbaneState High

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QueenslandArt Gallery

Southbank Instituteof TAFE

State Libraryof Queensland

Gallery ofModern Art

TAFE Open Learning

BrisbaneState High

School

Queensland PerformingArts Centre

Queensland Conservatorium

South BankParklands

South BrisbaneRailway Station

Queensland TheatreCompany

South BankCinemas

Queensland College of Art

South BankRailway Station

Southbank Instituteof TAFE

St. LaurencesCollege

SomervilleHouse

MaterPrivate

MaterHospital

Queensland Maritime Museum

Griffith UniversityFilm School

Kurilpa Park

Botanic Gardens

QueenslandUniversity of Technology

Myer Centre

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1 Queensland University of Technology - 40,0002 Southbank Institute of Technology - 30,0003 Griffith University - 3,373 4 CQ University - 5,0005 Sarina Russo6 EF International Language School7 A&NZ College of Anaesthetics8 New England College of Technology9 Holmes College10 Queensland College of English11 Brisbane Commercial12 Viva College

SOUTH BRISBANESTUDENTS WITHIN 1.5km80,000+

SOUTH BRISBANE’S EDUCATIONAL INSTITUTIONS 80,000 students equals a strong rental market

SouthBrisbaneisoneofSouthEastQueenslandlargesteducationalhubs.Therearecurrently12educationalinstituteswithinandsurroundingSouthBrisbane,illustratedbelow.TheSouthBrisbaneeducationalhubcatersforinexcessof80,000students.

• QueenslandUniversityofTechnology(QUT)–40,000students

• SouthbankInstituteofTechnology–30,000students

• GriffithUniversity–3,373students

• CentralQueenslandUniversity–5,000students

KEy iNfrasTruCTurE upGradEs TO EduCaTiONAnumberofrecentinitiativeshavebeenundertakenbyprivateandpublicinvestorstoprovideworldclasseducationfacilitiesandtoimprovethequalityofamenitiesforthelargestudentpopulationinSouthBrisbane.

• $40milliondevelopmentoftheGoodwillBridgehasprovideddirectaccessfromSouthBrisbanetotheQueenslandUniversityofTechnology(QUT).

• $37milliondevelopmentofGriffithUniversityConservatorium

• $325millionredevelopmentofSouthBankInstituteofTechnologyEducationandTrainingprecinct.

• ReplacementoftheQAStrainingfacilities

• RecentupgradestoSouthBrisbane’spublictransportincluding;theSouthEastBusway,refurbishmentoftheSouthBrisbanetrainstationandimprovementofpedestrianandcyclepaths.

South Brisbane is ideally located in close proximity to the majority of South East Queensland’s educational providers.


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West End Retail precinct

ColesSupermarket

South Bank Retail Precinct

South Brisbane

Queen Street Mall

Retail Precinct

Melbourne St Retail

Bars, Restaurants & CafesFashion BoutiquesOther Specialty StoresSupermarkets

27553

1572

SOUTH BRISBANERETAIL

SOUTH BRISBANE’S RETAIL AND CULTURAL DISTRICT The cultural and retail hubs of South East Queensland

275 Bars, Restaurants and Cafes 53 fashion Boutiques 157 Other Specialty Stores

TheSouthBrisbaneRetailandCulturalprecinctsencompasstheQueenslandCulturalCentre,LittleStanleyStreet,GreyStreetandtheSouthBankParklands.

LittleStanleyStreetishometoanumberofawardwinningrestaurantsandbarsaswellasboutiqueretailstoresfromrenownedinternationalandlocaldesigners.LittleStanleyStreetisadjacenttotheSouthBankParklands,a17hectareurbanoasisnestledontheBrisbaneRiver.SouthBanksoffersretailanddiningoptionsintegratedwithrainforestwalks,picnicareasandapicturesqueriverfrontpromenade.

GreyStreetformstheheartofBrisbane’sculturalhub.Inadditiontothestreetbeingfullyoccupiedwithrestaurantsandbars,theSouthBankCinemasandBrisbaneConventionandExhibitionCentrearealllocatedonGreyStreet.TheBrisbaneConventionandExhibitionCentreisofficiallyrankedamongthetopthreeconventioncentresintheworld.

Thecentreencompassesthreehallscateringforeventsfrom400to8,000delegates.TheSouthBankCorporationanditspartnersareaimingtocontinuethetransformationofGreyStreetintooneofAustralia’smostdistinctiveboulevards.

SituatedneartheendofGreyStreetistheQueenslandCulturalPrecinctandKurilpaPark.TheCulturalCentreishometo:

• GalleryofModernArt(GoMA):Isthenation’smostvisitedartgallerycomplexwithmorethan1.8millionpeoplevisitingthegalleryin2010.GoMAalsohostedfourofthefivemostpopularexhibitionsinAustraliain2010.

• QueenslandArtGallery:IsconsideredQueenslandpremiervisualartsinstitutionandoneoftheleadingartmuseumsinAustralia.

• StateLibraryofQueensland

• QueenslandPerformingArtsCentre:IshometofourofQueenslandleadingperformancecompaniesincludingtheQueenslandBalletandOperaQueensland.

• QueenslandTheatreCompany


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RENTAL MARKET INSIgHTS South Brisbane on market rental premium

On The Market Rental Prices ONE BEdROOM ANd TWO BEdROOM APARTMENTS

sOuTH BrisBaNE – aparTmENT rENTal marKETTheSouthBrisbanerentalmarketisundersuppliedwiththenumberofpeoplewantingtoresideinthesuburbsubstantiallyoutweighingtheavailableproduct.ThedemandforSouthBrisbanecoupledwiththislimitedsupplyhasenabledSouthBrisbanerentalpricestotradeatapremiumoversurroundingsuburbs.

ThisanalysislooksatoneandtwobedroomapartmentswithinSouthBrisbanethatarenearnewornewlydeveloped.Toprovideaccuratefiguresforcomparableapartmentproductinothersuburbstheapartment’slocation,size(squaremetre),aspectandagewereanalysedandbenchmarked.

TheaverageweeklyrentalpricegeneratedbyonebedroomapartmentsinSouthBrisbaneis$504perweek,considerablyhigherthantheaverageweeklyrentalofsimilarproductintheneighbouringsuburbofWestEnd.OnebedroomapartmentsinWestEndarecurrentlyachievinganaverageweeklyrentof$422,19percentlessthantheaverageweeklyrentinSouthBrisbane.Thisequatestoanaveragerentalpremiumof$4,264perannumforonebedroomapartmentsifitwaslocatedwithinSouthBrisbane.

OnebedroomapartmentsinFortitudeValleyandBowenHillscurrentlyregisteranaverageweeklyrentalincomeof$360,40percentlessthantheaverageonebedroomapartmentaskingrentachievedinSouthBrisbane.TherentalpremiuminSouthBrisbaneoverFortitudeValleyandBowenHillsequatestoalmost$7,500morerentoveraperiodofoneyear.TherentalpremiumforonebedroomapartmentsinSouthBrisbanewhencomparedtoasimilarproductinHamiltonis41percent.Thisrepresentsasimilarincomesacrificeof$7,500ifaninvestorwastopurchaseanaverageonebedroomapartmentinHamiltoninsteadofSouthBrisbane.

CurrentlytwobedroomapartmentsinSouthBrisbanegenerateanaverageweeklyrentalreturnof$670foranearnewornewapartment.WhencomparedtosimilartwobedroomapartmentsintheneighbouringsuburbofWestEnd,SouthBrisbaneachievesarentalpremiumof$176perweekor36percent.

Similartoonebedroomapartments,thedemandfortwobedroomapartmentsinSouthBrisbanedrivethesuburbtoachievearentalpremiumovercomparabletwobedroomapartmentsinFortitudeValleyandBowenHills.Thedifferenceinaskingrentsequatestoarentalpremiumof49percentoranaverage$221moreperweekwhichequates$11,492perannum.

Inrecentyears88,997sqmofofficespacehasbeenaddedtoSouthBrisbane.Thisincreaseinspacehasenabledapotentialnewworkforceof8,900whitecollarworkerstoworkintheimmediateSouthBrisbanearea.SouthBrisbane’sreputationasapremiumbusinessdistresswasrecognizedwithSuncorprecentlyannouncingthatitwillmove3,000newstaffintheyet-to-beconstructedSouthpointPrecinctonthecornerofGreyandVultureStreetinSouthBrisbane.ThiswillbringthetotalSouthBrisbaneOfficeMarkettoover300,000sqmofofficespace,whichwillequatetoapproximately30,000workers(assumingonepersonper10metresofofficespace.





One and two bedroom apartment rental premium RENTAL PREMIUM OvER WEST ENd, fORTITUdE vALLEy / BOWEN HILLS ANd HAMILTON fOR ONE ANd TWO BEdROOM APARTMENTS

South Brisbane Rental Premiums1-Bd 2-Bd

South Brisbane $504 $670

West End $422 $494

Fortitude Valley / Bowen Hills $360 $449

Hamilton $357 $494

South Brisbane Premium OverWest End 19% 36%

Fortitude Valley / Bowen Hills 40% 49%

Hamilton 41% 36%


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!(

THE GAP

MURARRIE

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ENOGGERA

CARINDALE

CARINA

BARDON

ST LUCIA

INDOOROOPILLY

ASHGROVE

EAGLE FARM

TOOWONG

CAMP HILL

COORPAROOCHAPEL HILL

ASCOT

MORNINGSIDE

NEW FARM

YERONGA

WINDSOR

CANNON HILL

TARINGA

BULIMBA

ALDERLEY

ANNERLEY

BRISBANE CBD

CARINA HEIGHTSGREENSLOPES

GRANGE

RED HILL NEWSTEAD

PADDINGTON

ALBION

MILTON

HERSTON

HOLLAND PARK

WILSTON

CHELMER

NORMAN PARK

NEWMARKET

SEVEN HILLS

FAIRFIELD

BALMORAL

SPRING HILL

TARRAGINDI

LUTWYCHE

GRACEVILLEFIG TREE POCKET

MARKET RENT COMPARISON BRISBANE, QUEENSLAND

© 2011 PSMA Australia Ltd, Sensis Pty Ltd. Australia Bureau of Statistics. Produced by Urbis Pty Ltd ( November 2011 )

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West EndOne Bedroom Current on Market Rent: $422 per weekTwo Bedroom Current on Market Rent: $494 per weekSouth Brisbane One Bedroom Rental Premium: 19%South Brisbane Two Bedroom Rental Premium: 36%

South BrisbaneOne Bedroom Current on Market Rent: $504 per weekTwo Bedroom Current on Market Rent: $670 per week

Fortitude Valley/Bowen HillsOne Bedroom Current on Market Rent: $360 per weekTwo Bedroom Current on Market Rent: $449 per weekSouth Brisbane One Bedroom Rental Premium: 40%South Brisbane Two Bedroom Rental Premium: 49%

HamiltonOne Bedroom Current on Market Rent: $357 per weekTwo Bedroom Current on Market Rent: $494 per weekSouth Brisbane One Bedroom Rental Premium: 41%South Brisbane Two Bedroom Rental Premium: 36%

Legend

!( Brisbane CBD

RENTAL MARKET INSIgHTS The recent investment in South Brisbane equates to over 300,000 square metres of office space and a potential rental catchment for South Brisbane of over 30,000 white collar workers.

Thiscommercialdevelopmenthasnotbeenshadowedbyresidentialdevelopment,withalimitedsupplyofnewresidentialbuildingsbeingdevelopedinSouthBrisbaneinthelastfouryears.Therefore,inSouthBrisbanedemandfordwellingsdrasticallyoutweighssupply,increasinglyleadingtowardscontinuedandsteadyincreasestotheweeklyrentalrate.

ThehigherrentalpremiumgeneratedinSouthBrisbaneforoneandtwobedroomapartmentscanbeattributedthesuburbscloseproximitytofourmajoreducationalfacilities,GriffithUniversity,QUT,SouthBankInstituteofTechnologyandCQUniversity.Thesefourmajoreducationalprovidershaveacurrentcombinedstudentpopulationofapproximately80,000students.InadditionaltothemajorinstitutionsanumberofPrivateEducationalInstitutionsarelocatedincloseproximitytoSouthBrisbanedrawingfurtherstudentsintothesuburb.ThishasdriventhedemandfortheapartmentmarketwithinSouthBrisbaneasalargenumberofstudentsareseekingrentalaccommodationwithinwalkingdistancetotheselargeeducationalfacilities.

TherentalpremiumisalsodrivenbythehighdesirabilityofSouthBrisbanewithresidentswillingtopayextraforthesuburbsproximitytotheCBD,employmentamenityandexistinginfrastructure.

SignificantexistinginfrastructureincludesVictoriaBridge,whichdirectlylinksSouthBrisbanetotheCDBattheQueenStreetMall,andGoodwillBridgewhichenablesdirectaccesstoQUT.Inaddition,recentupgradestopublictransportincluding;upgradestothebuswayatMelbourneandAdelaideStreetandtheSouthEastbuswayhaveprovidedSouthBrisbanewithnewandefficientpublictransport.

Alongsideinfrastructureupgrades,SouthBrisbanecanalsobeconsideredoneofBrisbanemajorculturalandboutiqueretailhubs,withalargeproportionofbothpublicandprivateinvestmentbeingconcentratedintothesuburb.ThisincludesredevelopmentofSouthbankSouthernRestaurantPrecinctandthenewlydevelopedQueenslandCulturalCentre.TheGalleryofModernArt(GOMA),whichformspartoftheCulturalCentre,wasthemostattendedartgalleryinAustraliawithover1.8millionpeoplevisitingduring2010.Inaddition,theABCradioandtelevisionfacilitiesalongwiththeQueenslandSymphonyOrchestrawillre-locatetotheirnewsiteonthecornerofGreyandRusselStreet,furtherenhancingtheculturalreputationofSouthBrisbane.


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RENTAL MARKET INSIgHTS Tightening of vacancy rates

The vacancy rate for Inner Brisbane at the end of the September 2011 Quarter was 2.7 per cent. This was lower than the vacancy rate of 3.2 per cent for the Brisbane Metropolitan Area over the same period. The vacancy rate for inner city Brisbane apartment rentals between 2007 to the current period on average achieved a vacancy rate of 2.7 per cent.

ThevacancyratewithintheinnerBrisbaneregionhasbeentighteningsincelate2009duetothelackofresidentialdevelopmentfollowingtheglobalfinancialcrisesandthesubsequentdifficultlyfordevelopersingainingfinancetodeliverapartmentprojectswithintheinnercity.Withlimitedsupplyandcontinuedincreasingdemand,vacancyrateswillpotentiallycontinuetotighteninthoseinnercitysuburbsthatarewellsupportedbyinfrastructureandamenity.

Inner and Metroplitan Brisbane - Vacancy Rates OESR - QUARTERLy vACANCy RATE - SEP 2009 QTR - SEP 2011 QTR

•PreparedbyUrbisandSourcedfromOESRQuarterlyVacancyData,June2011

It is safe to assume that rental rates will continue to increase in the near future, further driven by inner Brisbane’s ever increasing demand for rental accommodation and sluggish development of dwelling supply.


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dEmOGrapHiC aNalysisThecatchmentareaforSouthBrisbaneencompassestheresidentsofSouthBrisbane,WestEndandHighgateHill.ItisutilisedasameansofcomparingSouthBrisbane’sdemographictothatofitssurroundingsuburbs.Theestimatedresidentialpopulation(ERP)inSouthBrisbaneincreasedby0.6percentduringtheyearending2010,consistentwiththegrowthexperiencedintheCatchmentArea(1percent)andInnerBrisbane(1percent)overthesameperiod.

TheestimatedresidentialpopulationinSouthBrisbaneexperiencedlargefluctuationsinthegrowthratewhencomparedtotheCatchmentAreaandInnerBrisbane.Asaresultofthelimitedsupplyofresidentialdwellings,thepopulationdramaticallyincreaseswhennewdevelopmentsenterthemarket,resultinginfluctuationsinresidentpopulation.Thefluctuationsinpopulationillustratesthatwhennewresidentialproductentersthemarket,asignificantamountofpentupdemandispresent.Inaddition,thelowvacancyrateoftheregionsuggeststhatrentalsaretightandquicklyabsorbedwhennewproductentersthemarket.

aGE dEmOGrapHiCThemostprevalentagedemographicinSouthBrisbaneisresidents20to29yearsofage,whichequateto34.1percentofthetotalpopulation.ThemostdominantdemographicinSouthBrisbaneareresidentsbetween20to24yearsofageindicatingalargestudentpopulaceandprofessionalpopulace.Theconcentrationofthisagegroupisofnosurprisewhenconsideringthelocationsproximitytoanumberofkeyeducationalfacilitiesaswellasemploymentnodes.

FurthermorethisagegrouparemoreacceptingofdensitydevelopmentandgenerallyseektobelocatedinsociallyactiveanddiversehubssuchasSouthBrisbane.Withstudentnumberspredictedtoincreaseoverthenextfiveyears,thedemandforlowmaintenancedwellingsinsuburbssuchasSouthBrisbanewillalsocontinue.

mEaN TaxaBlE iNCOmE

Themeantaxableincomeforthecatchmentareafortheannualperiodending2009wascalculatedat$61,490,equatingtoanannualgrowthof3.1percent.Themeantaxableincomewasslightlylowerthanthe$67,483recordedwithintheInnerBrisbaneregion,whichcanbeattributedtothehighproportionofindividualsaged20to29yearsofage.Thishighproportionisreflectiveof:

• ThelargestudentpopulationresidinginSouthBrisbanebecauseofthesuburb’slocationinclosevicinitytoanumberoflargescaleeducationalfacilities.Thesestudentsarepresumablyworkingonacasualorpart-timebasiswhiletheyarestudying.

• Thehighproportionofindividualsaged25to29yearsofageisreflectiveofyoungprofessionalsresidinginthecatchmentthatareattractedtothelocationsproximitytoemploymentnodesandemergingofficedistrict.

Estimated Residential Population SOUTH BRISBANE, CATCHMENT AREA ANd INNER BRISBANE

DEMOgRAPHIC INSIgHTS

South Brisbane’s demographics are driven by the suburb’s location to key amenities

Mean Taxable IncomeCATCHMENT AREA ANd INNER BRISBANE

Age Demographic SOUTH BRISBANE, CATCHMENT AREA ANd INNER BRISBANE

•PreparedbyUrbisandSourcedfromABSRegionalPopulationGrowth,Australian3218.0

•PreparedbyUrbisandSourcedfromABS3235.0PopulationbyAgeandSex2010,RegionsofAustralia

•PreparedbyUrbisandSourcedfromATOMeanTaxableIncomebyPostcode


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Generation Born2008

Age

2011Age

2015Age

2021Age

2008% of Nation

2008 Pop (Approx. $ Mill)

2011 % of Nation (Projection)

2021 % of Nation (Projection)

The Great Generation 1925 -1945 62+ 65+ 69+ 75+ 16% 3.4 14.00% 7.5%

Baby Boomers 1946 - 1964 43 - 61 46 - 64 50 - 68 56-74 25% 5.3 23.75% 19.5%

Gen X 1965 - 1980 27 - 42 30 - 45 34 - 49 40 - 55 23% 4.8 22.25% 20.1%

Gen Y (Mellenials) 1981 - 1999 8 -26 11 - 29 15 - 33 21 - 39 26% 5.5 26.1% 26.2%

Gen Z 2000 and After 0 - 7 3 - 10 7 - 14 13 - 20 10% 2.1 10.2% 10.8%

Dumbbell Effect – Generation Y and Baby BoomersAUSTRALIAN GENERATIONS – THE BREAKdOWN

Botharegenerationswhichareprominentwithinthesite’scatchmentandgreaterfocuswillbeneededtoattractolderGenerationY(GenY)whoarenowmovingintoyoungfamilydynamicsandaremoreaccustomedtodensercommunitiesyetrequiremoreaffordableproductduetothelackofnetworthincomparisontoBabyBoomers.

GenYandBabyBoomershavebothmatchinganddifferentwantsandneeds,whichwillsimultaneouslydrivedemandinresidentialprojects.Nonetheless,GenYandBabyBoomers,willbemoreattractedtoproductthatiscentredonwalkableurbanenvironments,whicharegreen-orientated(sustainable)andarewellservicedbypublictransport,employmentnodes,andcentresofactivityorleisure,whichprovidedestinationappeal.

GenYwillbedefinedbyagrowingincomeearningpotential,combinedwithagrowinghouseholdsize,yetthemajoritybelievethatinner-cityfamilylivingisbeginningtobethenorm.Afocuswillbeonadwellinginanenvironmentwheretheycanlive,workandrecreate–andhigherdensitywillnotbeopposed.BabyBoomers,similarlyfocusedonlifestyle,haveincreasedequityyetwillwantmoremanageableandlowmaintenancespacestolivein.Theywillbelikelytoworklongerthanthey

typicalretirementageof65andwanttoembracethe‘town-centre’ideaofwalkableurbanareas.Forthoseinthelatterstagesoftheboomers,easeofaccesstomedicalandhealthcarefacilitiesisofhighimportance.AsBrisbanegrows,providing‘liveable’dwellingswillbekey.

Akeyexternalfactorforalldemographicgroupswillbetherisingcostofliving.Energycostscontinuetorise,withariseofover13%experiencedinQueenslandoverthe2010-11financialyear,andariseofnearly7%expectedforthe2011-12financialyear.Fuelpricescontinuetorise,andtheGovernment’sstanceonCarbonTaxationwillflowthroughtoaddanextracosttoourbottomline.Thesecostsaddup-wearealreadyseeinghouseholdsmovingtosmaller,newer,moresustainabledwellings,withproximitytopublictransport.

Thefocusthereforeforinvestorsanddevelopersistobeabletocapitaliseontheopportunitiestheseshiftingtrendspresents.Developingandinvestingwillultimatelybejudgedaroundkeycomponentssuchasachangingconsumerpreferencebasedaroundcommunity,neighbourhoodandfunction;thepositivesofurbanisationandwork/lifebalance;increasingsustainabilityand‘green’technologyintegration;andlocationsandproductwhichcountertherisingcostofliving.

Dumbbell Effect – Generation Y and Baby BoomersHOUSING dEMANd SHIfTS fOR THE AUSTRALIAN GENERATIONS

YearStaying at Home

with parents

Single and Room-mate

Rental Rent as Couple

/ 1st Home Young Family

OwnMature Family

OwnEmpty Nester Downsize Own

Retiree Senior Housing

2008 Gen Y Gen Z

Gen Y Gen X Gen X Baby Boomer Baby Boomer Baby Boomer The Great Gen

2010Gen YGen Z

Gen Y Gen Y Gen XGen Y

Baby Boomer Gen X

Baby Boomer Baby Boomer The Great Gen

2015Gen YGen Z

Gen Y Gen Y Gen Y Gen X Baby Boomer Gen X

Baby Boomer The Great Gen

2020 Gen Z Gen Y Gen Y Gen Y Gen X Gen Y

Baby Boomer Gen X

Baby Boomer

Understanding the demand and drivers of Australia’s two largest markets will be the primary driver in dwelling demand in the next five years as both gen y and Baby Boomers move into new phases of their dwelling accommodation life cycle.

SHIFTINg DEMOgRAPHIC


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Itisthesefundamentals,combinedwithonefurtherkeyvariable,thatshouldhaveallwiseinvestorsjumpingforjoy.Thatkeyvariableisvalue.Medianhouseandapartmentpricesinmanyareasarethelowesttheyhavebeeninyears.Inaddition,medianrentshaveconsistentlyrisenacrossallresidentialclassesacrossBrisbaneoverthepastfiveyears.Affordableprices,rentaldemand,andallincombinationwithinterestratesthatarestillbelowthelevelsseeninthe90’sandearly2000’s.

Thewisepurchaserwillseethattheopportunitytobuyisnow,therewillbenomagicalindicationbecausethesignseveryoneiswaitingforarethehardfactsrightinfrontofus–buyawell-pricedproduct,designedwiththeshiftingdemographicneedsinmind,withinanurbancommunitywellservicedbyamenityandinfrastructure,andthefutureofyourinvestmentlooksbrightindeed.

MARKET INSIgHTS AND OUTLOOK “There is no security, there is only opportunity” Global economic uncertainty remains turbulent, but Australia and Queensland in particular hold an enviable position of stable economic fundamentals and a booming resource sector. This robust climate portrays Brisbane property as an exceptionally secure investment option on a worldwide scale.

Wearenowenteringthefinalquarterofthecalendaryear,anditisreasonabletoconcludethat2011hasbeenatoughperiodfortheQueenslandpropertymarketandtheAustralianeconomyingeneral.Despiteaboomingresourcesector,confidenceacrossallothermajorindustrysectorshassoftenedsignificantlyonthebackofsubstantialinternationaleconomicturbulence.Acombinationofnaturaldisasters,poorGovernmentpoliciesandmonetarymanagementhavedonelittletoassureorenticeAustralia’spotentialhomebuyersandinvestorstore-enterthepropertymarket.

Despitemediadrivenfearthroughoutthemarket,takingalong-termlookatBrisbane’spropertymarketitisreasonabletopredictthatwehavenowreachedthebottomofourpropertycycle.Globaleconomicconditionsremainturbulent,butAustraliaandQueenslandinparticularholdanenviablepositionofstableeconomicfundamentalsandaboomingresourcesector.ThisrobustclimateportraysBrisbanepropertyasanexceptionallysecureinvestmentoptiononaworldwidescale.

Thereiscurrentlya‘stand-off’situationbeingexperiencedwithinvestorsandowneroccupierssittingontheirhands,waitingwithcautionforsomesignthatthingsaregoingtoimprove,presumablyresultingin‘herd-like’purchasingandprovidingtheperceptionofshort-termsecurity.Itwillbethewiseinvestorwhoreignssupremehowever,astheywillunderstandthatproperty,likemanyformsofinvestment,mustbeviewedonalongtermbasis-requiringplanning,knowledgeoffuturemarketsandpatience.Wiseinvestorswillunderstandthatdespitethemedia-drivenfear

acrossthemarket,thefundamentalsarestillstrongandthatthemarketispoisedforanotherperiodofsolidgrowthincomingyears.

PopulationgrowthforQueenslandandAustraliaremainsaboveorequaltothefiveyearaverage.Thispopulationgrowthisdrivenbyanumberofkeyareas,suchasemploymentopportunities,affordabilityofdwellingsandtheQueenslandlifestyle.Asteadygrowthinpopulationcombinedwithsmarteconomicstrategiesdevelopsastrongeconomy,andourcurrentresourcesboomwillbekeyindrivingthecallsforlabour.

Thegrowingpopulationwillalsobeachangingdemographic,withparticularmovementfromthelargestdemographicgroups,theBabyBoomersandtheGenY’s.Thewantsandneedsofthesetwogroupswillbewidelydifferent,withBabyBoomerslookingtodownsize,andaGenYdemographicmovingintoincreasedearningcapacity,lookingatlocalitytoemployment,lifestyleandinvestments.

Unemploymentisrelativelystable,howeverthelongtermforecastsuggestsBrisbanecanexpecttoprovideafurther360,000jobsby2031withinthe‘GoldenEmploymentTriangle’oftheBrisbaneCBD,theBrisbaneAirportandthePortofBrisbane.Intheshortterm,ourcommoditiesboomwillseeatighteningoflabouravailable,andwithBrisbanebeingthelargestcapitalcityinproximitytomuchofthisactivity,theloweringofunemploymentisexpected.

It is certainly not all doom and gloom for Brisbane’s property market, in fact, it is possibly one of the most opportunistic markets Brisbane home buyers and investors have experienced in many years.

2004

2007

20082009 2010

2011

2012NORMAL

PEAK

TROUGH

RECOVERY

2013

2016


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BRISBANE LgA RESIDENTIAL MARKET OVERVIEw andlongtermstrategythatisrealestateinvestment.” BrisBaNE lGa – HOusE marKET iNsiGHT

TheBrisbaneLocalGovernmentArea(LGA)registeredamedianhousepriceof$506,000,basedon2,771settledtransactionsattheendoftheSeptember2011quarter.Themedianhousepricedeclinedby6.3percentovertheyearandcanbeattributedtoanumberofkeyfactorsincluding;economicuncertaintyandthesubsequentinabilityofbuyerstogainfinance,lackofinterestandcommitmentofpurchasersinthehigherpricepointsandthelingeringeffectsoftheJanuaryfloods.

However,settledtransactionsincreasedovertheSeptember2011quarter,swellingby55percentor979settlements.TheincreaseinthenumberofsettledtransactionsoverthequarterisapositivesignfortheBrisbaneLGAhousingmarketandcoupledwithrecentinterestratecuts,activityissettoincreasemovinginto2012.

TheBrisbaneLGAsalescyclegraphidentifiesthelong-terminvestmentthatispropertyasanassetclassandreinforcesthepotentialcapitalgrowththatcanbeachieveddespiteshorttermfluctuations.Despitethedeclineinmedianhousesalepricesincepeakingbackinmid-2010,theBrisbaneLGA’smedianhousepriceoverthepastfiveyearshasregisteredanincreaseof5.5percentperannumandoverthepast10yearshasincreasedby9.7percentperannumendingSeptember2011.ThedeclineinmedianhousepriceswithintheBrisbaneLGAcoupledwiththecurrentmarketoutlookindicatesthatpricesmayhavefinallyhitbottom.Thiscanbeperceivedasoneofthebestopportunitiestoenterthepropertymarketwhilehousepricesremaincompetitive.

BrisBaNE lGa – aparTmENT marKET iNsiGHTTheBrisbaneLGAmedianapartmentpriceattheendoftheSeptember2011quarterwasrecordedat$388,000,basedon1,521settledtransactions.ApartmentsinBrisbanehaveperformedconsistentlybetterovertheperiodthanthehousemarket,decliningbyonly2percentsincetheJune2011quarter.Thebuoyancyandsubsequentpricesofteningoverthequartermaybeattributedtomoreaffordableproductbeingpurchasedandalowsupplyofnewproductenteringthemarket,limitingtheavailabilityofapartmentstockindesiredlocationswithintheBrisbaneLGA.

ThedeclineinmedianapartmentpricesacrosstheBrisbaneLGAcanbeaseenaspositiveforthosewantingtoenterthepropertymarketforthefirsttimeaswellasinvestors.Furthermore,recentinterestratecutsmaysoonseeBrisbane’saffordableapartmentproductbecomeonceagaininhighdemand.ThiscanbeattributedtotheopportunitiessurroundingBrisbane’scontinuedlowvacancyinrentaldwellings,inparticularwithintheinnercity,attractinginvestorsbackintothemarket.Anincreaseinthedemandforapartmentsovertheshorttermwillcertainlyseetherapidabsorptionofthelimitedsupplyofcompetitivelypricedapartmentswithinthemarketassupplyremainsconstrainedfordeveloperstoreleasenewproduct.

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Sep-80

Sep-81

Sep-82

Sep-83

Sep-84

Sep-85

Sep-86

Sep-87

Sep-88

Sep-89

Sep-90

Sep-91

Sep-92

Sep-93

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Sep-95

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Sep-98

Sep-99

Sep-00

Sep-01

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Sep-10

Sep-11

Median Sale Price

Num

ber o

f Tra

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Period (Quarterly)

Brisbane LGA - House Sales Cycle

Num Sold QTRLY

Median Price QTRLY

Positive signs in the september quarter

Brisbane LGA House MarketBRISBANE LGA SALES ANd MEdIAN HOUSE PRICE TIME SERIES SEP 1980 TO SEP 2011

•PreparedbyUrbisandSourcedfromRPData

Brisbane LGA Apartment MarketBRISBANE LGA SALES ANd MEdIAN UNIT PRICE TIME SERIES SEP 1980 TO SEP 2011

Opportunities present in the apartment market

$0

$50,000

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$450,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Sep-80

Sep-81

Sep-82

Sep-83

Sep-84

Sep-85

Sep-86

Sep-87

Sep-88

Sep-89

Sep-90

Sep-91

Sep-92

Sep-93

Sep-94

Sep-95

Sep-96

Sep-97

Sep-98

Sep-99

Sep-00

Sep-01

Sep-02

Sep-03

Sep-04

Sep-05

Sep-06

Sep-07

Sep-08

Sep-09

Sep-10

Sep-11

Median Sale Price

Num

ber o

f Tra

nsac

tions

Period (Quarterly)

Brisbane LGA - Unit Sales CycleNum Sold QTRLY

Median Price QTRLY

Prepared by Urbis Source: RPData



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South Brisbane Catchment House MarketSOUTH BRISBANE CATCHMENT SALES ANd MEdIAN HOUSE PRICE TIME SERIES SEP 2001 TO SEP 2011

sOuTH BrisBaNE lGa – HOusE marKET iNsiGHTThemediansalepriceforhouseswithintheSouthBrisbanecatchmentwas$606,000,basedon80settledtransactionsattheendoftheSeptember2011halfyear.OvertheyearendingSeptember2011themedianhousepriceinthecatchmentrecordedagrowthof2.7percent,buckingthetrendacrosstheBrisbaneLGApropertymarket.

Breakingdownthecatchment,SouthBrisbane’slimitedsupplyofhouseproduct,registeredninesettlementsovertheperiodwithpricesrangingfrom$565,000to$1.6million.WestEndregisteredthemajorityofsettledhousetransactionsovertheperiod,equatingto56housesalesandachievingamedianhousepriceof$510,000.

Conductingaresaleanalysisonthecatchmenthasidentifiedthetightlyheldnatureofhouseproductwithintheregion,withhousestransactingwithin2011registeringanaverageholdperiodof5.27yearscomparedtoBrisbane’saverageof4.5years.

sOuTH BrisBaNE lGa – aparTmENT marKET iNsiGHTTheSouthBrisbanecatchmentregisteredamedianapartmentpriceof$484,250,basedon100settledtransactionsattheendoftheSeptember2011halfyear.Theapartmentsalescyclegraphillustratesthelackofactivityintheprecinctsincelate2007,withthemedianapartmentpricefluctuatingthrougheconomicandnaturaldisasters(GFCandtheJanuary2011floods).ThebouncebackofthemediansalepriceattheendoftheSeptember2011halfyearindicatesthelevelofpentupdemandthatispresentwithinthecatchment,withthemedianapartmentpriceincreasingby20percentsincetheMarch2011halfyearperiod.ThemajorityofapartmentproductislocatedwithinSouthBrisbaneandWestEnd,registeringatotalof56and66settledapartmenttransactionsrespectivelyoverthehalfyear.

WestEndrecordedthehighestmedianapartmentpriceduringthehalfyearof$505,000comparedtoSouthBrisbane’smedianapartmentpriceof$440,000attheendoftheSeptember2011halfyear.ThelowermedianapartmentpriceinSouthBrisbaneisdirectlyrelatedtotheapartmentstyleandproductavailableinthesuburb.UnlikeWestEnd,whichaccommodatesahighproportionoflarger,morematurecoupleorientatedapartments,SouthBrisbaneaccommodatesapartmentproductthatsuitsitslargestdemographicofresidentswhoarebetween20to29yearsofage.TheseresidentsaregenerallylookingatresidinginoneandtwobedroomapartmentsthatarecentrallylocatedwithinactiveandsocialhubssuchasSouthBrisbane.

Houses in South Brisbane are in short supply

SOUTH BRISBANE CATCHMENT RESIDENTIAL MARKET INSIgHTS


South Brisbane Catchment Apartment Market SOUTH BRISBANE CATCHMENT SALES ANd MEdIAN APARTMENT PRICE TIME SERIES SEP 2001 TO SEP 2011

Median sale price on the rise



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SOUTH BRISBANE CATCHMENT RESIDENTIAL MARKET OVERVIEw

Limited supply in South Brisbane

larGE uNdErsupply iN THE sOuTHTheinadequatesupplyofapartmentsintheSouthBrisbaneCatchmentisevidentinthelimitednumberofsalesinthetimeseriesgraphabove.ThelevelofsupplyintheSouthBrisbaneCatchmentwillstillcontinuetobelimitedwithminimalofftheplanapartmentscurrentlyunderconstructionoravailableforsale.

CurrentlytheregionsouthoftheBrisbaneCBD,whichincludesSouthBrisbaneandWestEnd,hasonly378offtheplanapartmentsavailableforsalecomparedto1,316intheregionnorthoftheBrisbaneCBD.ThisillustratesthelimitedavailabilityofstockintheregionconsideringthatSouthofBrisbaneisinhighdemand.Theshortageofofftheplanapartmentsissettocontinuewithonlyafurther394currentlyunderconstruction.

TheundersupplyofofftheplanapartmentstotheSouthofBrisbaneisevidentwith500percentmoreapartmentsunderconstructiontotheNorthofBrisbanecomparedtotheSouth.Inaddition,intheNorthofBrisbanethereiscurrently350percentgreaterofftheplanapartmentscurrentlyavailableforsale.

ResidentialdevelopmentsrecentlybuiltorcurrentlyunderconstructionareinaprimesituationtocapitaliseonthelimitedstockSouthoftheBrisbaneCBD,whichiscoupledwiththehighpentupdemandfortheregion.

CapiTal CiTiEs - aparTmENT marKET iNsiGHTsTheBrisbaneLGAapartmentmarketremainsmoreaffordablewhencomparedtotheMelbourneSDandSydneySD.ThemediansalepriceforapartmentsintheBrisbaneLGAattheendoftheSeptemberquarter2011wasrecordedat$388,000,18percentlowerthaninSydneyand9percentlessthanthemedianregisteredinMelbourne.

ThethreeapartmentmarketsregisteredadeclineinmediansalepriceoftheSeptemberquarter2011,withBrisbaneLGArecordedthehighestdeclineof2percent.Asofteningof1.6percentwasevidentinMelbournewiththemedianapartmentpricefinishingtheSeptemberquarterat$423,000.Sydneyexperiencedthesmallestdeclineinmediansalepriceof1.2percent,equatingtoamediansalepriceforthequarterof$458,000.

Theaffordabilityoftheapartmentmarketisnowbecomingakeyaspectcreatinggrowingdemandforthistypeofdwelling.Theshiftingagedemographic,withemphasisplacedonurbanisation,work/lifebalance,andproximitytoamenitiesandinfrastructurewillbekeytofuturedemands,andwearealreadyseeingthebeginningofthisshift–adesireforahomethatincreases“liveability”,yetcounterstheeverincreasingcostofliving.

Althoughapartmentmarketsnationwidearefeelingtheeffectsoflowmarketconfidence,truerealestateinvestorswillunderstandthelongtermstrategyaroundrealestateinvestment.Theopportunityexistswithinthecurrentmarkettocapitaliseoncompetitiveapartmentprices,lowvacancyratesandstrongrentalyields,withinvestorsinaprimepositiontoseekpositivelygearedinvestments.

1.TheNorthofBrisbaneincludesthesuburbsof;FortitudeValley,KelvinGrove,Hamilton,Newstead,BowenHills,TeneriffeandHamilton.

2.TheSouthofBrisbaneincludesthesuburbsof;SouthBrisbane,Woolloongabba,Annerley,KangarooPoint,BulimbaandWestEnd.

•PreparedbyUrbisandSourcedfromUrbis

•PreparedbyUrbisandSourcedfromABSCat.6202.0

Brisbane density living remains more affordable than Melbourne and Sydney

Off the Plan Apartments in Brisbane SEPTEMBER QUARTER 2011

Brisbane LGA, Melbourne SD And Sydney SD Median Apartment Price TIME SERIES SEP 1991 TO SEP 2011

NORTH SOUTH

AMOUNT Of NORTH v SOUTH STOCK AS A PERCENTAGE

Under Construction 1,960 394 500%

Sold 2,088 753 280%

Available for Sale 1,316 378 350%

Total Stock 3,404 1,131 300%


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MACRO-ECONOMIC INSIgHT

fleeting confidence quickly eroded as economy struggles to find traction

BusiNEss CONfidENCEBusinessconfidencefellheavilyattheendoftheSeptember2011quarter,decliningfromapositiveindexvalueof6.0toanegativevalueof4.0.ThenegativevaluerepresentsthefirsttimesincethequarterendingJune2009wherethebusinessconfidenceindexvaluehasslumpedbelowzero,indicatingthatpessimistsarenowoutweighingtheoptimists.

Thedropinbusinessconfidencecanbeattributedtouncertaindomesticandinternationalmacroeconomicconditions.TheAustralianeconomyfaultedduringtheperiodwithfallsinthequarterintradingconditions,businessprofitabilityandemploymentprojections.TheAustralianStockExchangewasplaguedbyperiodsoflowconfidencewiththeS&P/ASX200revellingconstantfluctuations.ThetwospeedAustralianeconomywasalsoaprimeconcernforinvestorsandbusiness’salikewiththecommoditiessectorpostingsubstantialgrowthrateswhiletherestoftheeconomywasweakening.

BusinessconfidencewasalsoshakenbytheuncertaintysurroundingtheglobaleconomicmarketsandinparticularthecurrentturmoilintheGreekandItaliandebtcrises.BusinessesarewearyovertheriskthatdebtcontagionposestotheEuropeanUnioneconomyandsubsequentdominoeffectsontheAmericanandAsianMarkets.

uNEmplOymENTOverthedecade,stronggrowthinthedemandforlabourhasbeenaccompaniedbyalargeexpansionofthelabourforce,particularlysincethemid-2000s.LabourforcegrowthinAustraliahasmirroredincreasedparticipationaswellaspopulationgrowth.Theincreaseinparticipationhasbeenmostnoticeableforfemalesandolderpersonsmotivatedbyarangeofsocialandeconomicfactors.Theaccelerationinpopulationgrowthhasbeenlargelyduetohigherimmigration,withalargerintakeofskilledworkersandstudentsamajorcontributortotheriseinthelaboursupply.

Thenationalrateofunemploymentincreased0.1pointstoreachatenmonthhighof5.3percentattheendofAugust2011.Despitethelift,themovingannualaverageremainedsteadyat5.1percent.Theriseequatedtoalossof9,700jobs,actingindirectcontrasttomanyeconomist’spredictingofanincreaseinjobstothetuneof11,000.Addingfurtherconcerntothefigure,thedeclinecamefromalossof12,600full-timejobs(to8,034,900),whileaportionofthiswasoffsetbyanincreaseinpart-timeemploymentof2,900(to3,397,600).ThejobcutscanlargelybeattributedtothestrongAustraliandollar,whichislimitingmanufacturingandthetourismindustry,alongwithglobaleconomicuncertainty,whichishavinganadverseeffectonspendingandthustheretailindustry.

•PreparedbyUrbisandSourcedfromNationalAustraliaBankQuarterlyEconomicSurvey


Unemployment rate rise on the back of strong Aussie dollar and global uncertainty.

Business Confidence SEPTEMBER 1991 TO SEPTEMBER 2011

Unemployment Rate – Australia ABS – OESR: UNEMPLOyMENT RATE AUSTRALIA


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Source: RBA Statistical Tables G1; Prepared by Urbis

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0% N

ov-80 N

ov-81 N

ov-82 N

ov-83 N

ov-84 N

ov-85 N

ov-86 N

ov-87 N

ov-88 N

ov-89 N

ov-90 N

ov-91 N

ov-92 N

ov-93 N

ov-94 N

ov-95 N

ov-96 N

ov-97 N

ov-98 N

ov-99 N

ov-00 N

ov-01 N

ov-02 N

ov-03 N

ov-04 N

ov-05 N

ov-06 N

ov-07 N

ov-08 N

ov-09 N

ov-10 N

ov-11

Stan

dard

Ban

k H

ousi

ng L

oan

Inte

rest

Rat

e( %

)

Period (Month)

•PreparedbyUrbisandSourcedfromRBAStatisticalTablesG1

•PreparedbyUrbisandSourcedfromRBAStatisticalTablesG1


Australian Inflation RatePERCENTAGE CHANGE fROM SEP 2000 TO SEP 2011

CONsumEr priCE iNdExTheCustomerPriceIndex(CPI)wasrecordedat3.5percentforallgroupsand2.3percentexcludingvolatileitemsforthequarterendingSeptember2011.CPIroseduringthefirstquarterof2011,asaresultoftheweatherphenomenon’sexperiencedduringthisperiod.ThesubsequentlimitedsupplyofessentialcropsandthecorrespondingriseinpriceforthemwasthemaincontributortotheincreaseinCPIoverthisperiod.

Theagriculturalsectorhasstartedtorecoveroverthefinalhalfof2011withtheproductionofkeycropsreachingsustainablelevels.Theindexhasdemonstratedthedropinpricesasaresultofincreasedproduction,withtheCPImeasuresofteningduringtheSeptemberquarter2011.

TheRBAbelieveiflabourmarketconditionssoftenandlabourcostsremainconstant,theinflationrateshouldreturntothebank’stargetrangeof2to3percentduring2012to2013.ThisconfidencehasseentheRBAaltertheirpositionfromamoderatestancetoamoreneutralposition,reflectedinthe2ndDecemberratecutof25basispoints.

iNTErEsT raTEsTheRBA’slatestdecisiontoreducethecashrateby25basispointsforasecondconsecutiveperiodillustratedtheirchangeinmonetarypolicyfromamoderatestancetoamoreneutralposition.ThechangeinstancewasinresponsetoinflationlevelsnowremainingclosertotheRBAtargetrangeasproductionlevelsincreaseandconfidencecontinuestobesubduedoutsideoftheresourcessector.

AccordingtotheRBA,fearsofanothermajordownturnhavenotbeenborneoutsofaraseconomicactivityintheUnitedStatesandAsiahasrecovered.ActivityinChinahasslowedbutindirectrelationtoanumberofpolicyinitiativesundertakenbytheGovernment.TheRBAstillexhibitssomeconcernovertheEuropeanDebtCrisesandthepotentialofdebtcontagionthroughoutEurope.

DespitetheRBAloweringthecashrateto4.5percent,retaillendershavebeenuncertainwithloweringtheirinterestratesofhousingloans.TheRBAhasattributedthereluctancetouncertaintyintheglobaleconomy,subduedcreditgrowthratesandassetpricesdeprecatingovertheyear.Thisisevidentwiththestandardbankhousingloaninterestratehasremainedconstantat7.8percentfromNovember2010throughtoOctober2011.ThesuccessivedeclinesinthecashratebytheRBAcoupledwithinanincreaseincompetitionfromlendinginstitutionshasfacilitatedadeclineinthestandardrateby25basispointsattheendofNovember2011.

RBA Standard Bank Housing Loan Interest Rate OCTOBER 1980 TO OCTOBER 2011

RBA’s neutral monetary policy stance should realise lower interest rates

High exchange rate and increased production levels should weaken inflation


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dwElliNG COmmENCEmENTs DwellingcommencementsinAustraliarecordedamodestgrowthof1percentovertheJune2011quarter.Thegrowthequatestoanincreaseof301dwellingsfromthepreviousquarterandisapositivesignaftersignificantdeclinesindwellingcommencementssinceJune2010.

ThegrowthwaslargelyattributedtoasubstantialincreaseindwellingsinAustralianCapitalTerritory(50percent),SouthAustralia(14percent)andVictoria(12percent).Contrasty,dwellingcommencementswereconsiderablydowninTasmania(-61percent)andNewSouthWales(-18percent).Victoriarecordedthelargestnumberofdwellingcommencementwith14,684duringtheJune2011quarter,equatingto39.5percentofAustraliancommencements.

DwellingcommencementsinQueenslandsoftenedby2percentovertheJune2011quarterdecliningby111commencementsfromthepreviousquarter.ThisisacommontrendinQueenslandwithagrowthindwellingcommencementsnotrecordedsincetheJune2010quarter.Overthelastyear,endingJune2011,theaverageannualdeclinewasrecordedat5percent.InresponsetothedeclineindwellingcommencementsinQueenslandandtheHousingIndustryAssociation’s(HIA)demandforstimulusmeasurefornewhousingtheQueenslandGovernmentannounceda$10,000governmentgrantforthosehomebuyersintendingonbuildingorpurchasinganewlybuilthomebeforetheendofJanuary2012.

pOpulaTiON GrOwTH TheAustralianpopulationincreasedby1.3percentequatingto288,008newresidentsduringtheannualperiodendingMarch2011.ThegrowthrateoverthelastyearwasthelowestrecordedgrowthsincetheannualperiodendingMarch2005.

ThecommoditiesboominWesternAustraliaandsubsequentemploymentbenefitsisevidentwiththeannualgrowthregisteredat2.1percentendingMarch2011.Thefiveyeargrowthrateisalsosignificantlyhigherrecordedat2.7percent.OverthisfiveyearperiodthepopulationinWesternAustraliahasincreasedby281,013residents.

Queensland,anothercommoditiesrichstate,registeredthesecondhighestfiveyeargrowthat2.4percentendingMarch2011.SignificantlyoverthisperiodQueenslandpopulationincreasedbyjustunder500,000residents.TheimpactofthecommoditiesboomisexceptionallyimportanttoQueenslandandWesternAustralia.

SignificantinvestmentandexpansioninkeygovernmentdepartmentscanbeattributedtotheannualgrowthevidentintheAustralianCapitalTerritory.TheannualperiodendingMarch2011sawachangeinpopulationof6,484residentsinAustralia’scapital.



Dwelling CommencementsJUNE 1990 TO JUNE 2011

Population Growth In AustraliaMARCH 2005 TO MARCH 2010


Australia is still expanding - but where are they going to live?

Queensland represented only 17% of the nation’s dwelling commencements.


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sydneyLevel 21, 321 Kent Street

Sydney, NSw 2000t 02 8233 9900f 02 8233 9966

melbourneLevel 12, 120 Collins Street

Melbourne VIC 3000t 03 8663 4888f 03 8663 4999

BrisbaneLevel 12, 120 Edward Street

Brisbane QLD 4000t 07 3007 3800f 07 3007 3811

perthLevel 1, 55 St georges Terrace

Perth wA 6000t 08 9346 0500f 08 9221 1779

Australia • Asia • Middle Easturbis.com.au

Urbis Authors of this report were:associate director property Economics: Jon rivera

Consultant property Economics: doug rapson

ABOUT URBISUrbis Property Economics’ division provides reliable, independent, unbiased, and authoritative property research and consultancy to clients in metro and regional locations across Australia and abroad. Our extensive research capability and specialised approach ensures our clients can make the most informed and financially sound decisions about residential, retail, commercial and industrial properties.

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Thispublicationissubjecttocopyright.ExceptaspermittedundertheCopyrightAct1968,nopartofitmayinanyformorbyanymeans(electronic,mechanical,photocopying,recordingorotherwise)bereproduced,storedinaretrievalsystemortransmittedwithoutpriorwrittenpermission.Enquiriesshouldbeaddressedtothepublishers.

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