New infrastructure projects in an area can kickstart a sluggish property market and drive prices higher.
And a wave of extra buyers and renters generally means an upswing in property prices, according to Hotspotting founder Terry Ryder.
By keeping an eye on where these projects are coming up, buyers can get in early and take advantage of the price growth.
Mr Ryder said transport infrastructure was the main factor that drove prices higher.
A relatively small investment in transport could have a bigger impact than other more expensive projects, Mr Ryder said.
Public transport links and freeways unlocked inaccessible pockets of the city and shortened lengthy commutes.
There is no shortage of transport projects under way in Melbourne, with train station upgrades, freeway expansions and the East West Link project all promising to improve access to hubs outside the CBD.
Paul Osborne, founder of buyers’ advocacy Secret Agent, said owner-occupiers would prioritise different surroundings than investors.
“If somebody is buying a home, what they’re buying is their own environment or habitat,” Mr Osborne said.
Different types of infrastructure, such as green spaces and school zones, became much more important for them, he said.
“It might be harder to quantify visual things, but they really make a difference,” Mr Osborne said.
Mr Ryder honed in on Casey and Sunshine as hot spots for future capital growth. Both are relatively affordable property markets, with projects such as the $880 million reconstruction of Sunshine train station and the expansion of Monash University’s Berwick campus heralding an increase in housing demand.
“We tend to regard that as the power combination — jobs plus affordability plus infrastructure,” Mr Ryder said.
“We find that over the long term, the best capital growth rates tend to be in cheaper areas because that’s where the mass demand goes.”
Activity is already brewing in Sunshine, where the median house price jumped 23.2 per cent in the June quarter from $500,000 to $539,000, according to Real Estate Institute of Victoria figures.
Barry Plant Sunshine director Jason Allen said investors and owner-occupiers were flooding into the area.
“People have taken stock that there’s a lot of money being invested here,” Mr Allen said.
The spend on the train station had been a large drawcard, but buyers were also coming to Sunshine after being outpriced in the inner suburbs, he said.
In the eastern suburbs, Ringwood has emerged as a site for change. The State Government has designated Ringwood as one of Melbourne’s seven “Central Activities Areas” to become a hub for future employment and public investment.
A $575 million expansion of the Eastland shopping centre and a $66 million upgrade of the Ringwood train station and bus interchange are two major projects already under way.
Carter Ringwood agent David Green said: “While there was nothing happening people weren’t investing. Now work has started, the floodgates are open.”
Part of the capital growth was likely to occur while projects were still under construction, Mr Carter said.
There has been a flurry of interest in development sites surrounding the shopping centre, with a crop of new apartment buildings set to hit the skyline.
Mr Carter sold a 919sq m block at 8 Bourke St — 150m from Eastland — for $1.705 million in July, smashing the reserve price by $705,000.
“The buyer owned some adjoining land, so they were prepared to pay a price others wouldn’t,” he said.
The improvement in Frankston’s property market since EastLink opened provides some insight to the extent infrastructure can impact prices.
Hocking Stuart Frankston director Adrian Foster said the market was thriving. There had been two stages to the rise in real estate activity, first when the project was announced and now that people could see the benefits.
“It gives you an amazing run down to the peninsula for weekend activities and also a quick drive to the city.”
When John and Sabrina Putmandecided to downsize, it was to achieve a better lifestyle.
An apartment on Bourke St, Ringwood — a hop, skip and a jump from the expanding Eastland shopping centre and the train station — offered the right mix of convenience and investment potential.
“I think Ringwood in the next two to three years is really going to kick on,” Mr Putman said.
“It’s very cosmopolitan and it’s going to be a great investment.”
He said the easy access from other parts of the city made Ringwood the popular choice for shopping in the eastern suburbs.
“It’s that little bit harder to get out to Knox,” he said.
“Then there’s Doncaster, where you can’t get a parking spot.
“That’s why so many people are coming out here.”
Having EastLink close by for a quick commute to the city or his work in Dandenong South was another selling point.
“There’s just one set of lights then I’m on the freeway,” Mr Putman said.
“We’ve got everything we need, like we’re living in the inner suburbs.”
WHEN TOO CLOSE IS NO COMFORT
BEING close to infrastructure is a drawcard, but there’s a danger in being too close.
Properties that face a main road, major intersection or train tracks can have noise, privacy and security concerns.
Paul Osborne, founder of buyers’ advocacy Secret Agent, said people generally paid 10-15 per cent less for properties in those positions.
He gave the recent sale of 31 Cromwell Rd, South Yarra, as an example.
The four-bedroom terrace house, set metres from the train tracks, sold for $1.53 million in May.
“It should probably be worth another $1 million on top of that,” Mr Osborne said.
Flight paths, cemeteries and uncertainty about future projects could also cause prices to drop, he said.
And while investors were generally less picky than owner-occupiers, that could raise problems in the future.
“Some investors are more likely to go for things like main roads,” Mr Osborne said.
“But that’s probably the last thing they should do. When you buy a property, you’ve always got to think about when it’s time to sell.”
Hotspotting founder Terry Ryder said there was an ideal proximity range — within walking distance but outside noise concerns.
“The ideal would be about a kilometre from a train station,” Mr Ryder said.
Original article published at www.news.com.au by Nicole Engwirda, The Herald Sun Real Estate 18/8/2014
Development Update: $67m Springfield Central Sports Complex
A $67 million sporting development in Greater Springfield, an urban growth corridor located south west of Brisbane’s metropolitan area, is on track to open this year.
The developer of Greater Springfield says it is “cementing itself as one of Australia’s super sporting meccas” with its new Springfield Central Sports Complex slated to open to the public mid-year.
The new sporting facility, which neighbours Springfield Central State High School and St Peter’s Lutheran College, also joins the recent announcement of the $70 million Brisbane Lions AFLW stadium announced in January.
Springfield’s current population sits around 41,000 with this figure predicted to triple in size by 2030.
Rewind to 1992, when Greater Springfield founder Maha Sinnathamby purchased the 7000-acre parcel of land — today’s Springfield — which no developer wanted to touch.
Sinnanthamby says the region has a growing student population.
“There are currently 11,000 students in Greater Springfield, with that number expected to grow by 1200 each year moving forward,” the Springfield Land Corporation chairman said.
The developer says Greater Springfield is Australia’s first masterplanned greenfield city since Canberra, and to date it has seen $15 billion worth of infrastructure invested.
“We have a supersized CBD and an employment target of one job for every three residents,” Sinnathamby said.
The new sporting development will feature four ovals, 16 netball courts, eight fields, eight tennis courts, an athletics track as well as clubhouses and playgrounds.
City Deal a $58bn ‘Game Changer’ for Southeast Queensland
South-east Queensland could be green-lit for the biggest “city deal” in Australia, with a $58 billion proposal to guide its growth, and the prime minister announcing his support for the major plan.
With a focus on supporting diverse sectors within the region including housing and planning, tourism, manufacturing and education, the SEQ City Deal could also pave the way for government-owned land to be opened for development.
Queensland deputy premier Jackie Trad this week released Transforming SEQ, which highlights 35 “opportunities” that could be considered as part of the future City Deal, including six “game changers” for the region.
“Modelling by KPMG has shown a SEQ City Deal could stimulate an increase of up to $58 billion in our economy by improving the productivity and competitiveness of the region,” Trad said.
Prime minister Scott Morrison will be meeting with the SEQ Mayors and Queensland government to discuss the proposal this week.
The City Deal, which involves all three levels of government — council, state and federal — would see government working on priorities to drive the SEQ economy.
Under a City Deal plan, all three levels of government sign an agreement to set the priority infrastructure projects and initiatives.
Integrated land-use planning approach?
Property Council chief executive Ken Morrison described the announcement as “a game-changer for the region.
“Our growing cities and urban regions are the engine rooms of the Australian economy,” Morrison said.
“The city deal model brings together all levels of government around the same plan to boost productivity and jobs through targeted investment in city-shaping projects and infrastructure.”
Property Council Queensland director Chris Mountford said the council has been collaborating with state government and SEQ councils for nearly six years on the potential for a city deal.
“The State and local governments have also agreed in principle to a more coordinated integrated land-use planning approach,”
“Opening up under-utilised government-owned land for development has also been agreed as a clear opportunity to unlock economic activity, create jobs and build business confidence.”
The region’s current 3.5 million population is forecast to increase to 5.3 million within the next 25 years, ultimately requiring an extra 800,000 homes and additional one million jobs.
Focus has been placed on the recently released people mass movement study which identifies the impact of the expected population growth on the region’s ability to cope with future transport demand.
Minister for Cities Alan Tudge said he, along with the prime minister, will be meeting with the SEQ Mayors to discuss the Deal.
“We need to cater for this rising population and the SEQ City Deal will be a huge step forward,” Tudge said.
South-east Queensland is already home to over two-thirds of the state’s population.
The region is home to nearly one in every seven Australians.
The agreement marks the second city deal for Queensland following the policy being first established in Townsville.
So far, city deals have been developed for Western Sydney, Townsville and Launceston, and a further four more are currently under negotiation in Adelaide, Hobart, Perth and Geelong.
$63b infrastructure plan to keep SEQ moving till 2041
It’s going to cost $63.7 billion to keep South East Queensland moving over the next two decades, according to a study released today by the region’s mayors.
The population of the region is expected to grow by about 1.8 million people to more than five million people by 2041, putting extraordinary demand on the already strained transport network.
The SEQ People Mass Movement Study lists a total of 47 projects designed to keep city-to-city trips under 45 minutes and urban commutes under 30 minutes, including a faster rail network connecting the Sunshine Coast and Gold Coast via Brisbane and west to Ipswich and Toowoomba.
Brisbane Lord Mayor Graham Quirk said the infrastructure plan, coined the Strategic Transport Road Map, would keep the region “economically productive” while maintaining its liveability.
“Business as normal is not going to work, we need to increase the amount of money that is being spent in South East Queensland,” Cr Quirk said.
He said the plan would require an average expenditure of about $2.7 billion per year until 2041, which he said was “not an unrealistic figure”.
“What we are seeing in Sydney and Melbourne right now is this massive spend on infrastructure. That’s because they allowed it to get too far behind. We cannot do that in South East Queensland.”
He said there had been no shortage of plans for the region’s transport network, but it was time for all levels of government to unite with a shared vision.
Redland City mayor Karen Williams said the plan delivered the projects over a “reasonable amount of time with a reasonable amount of investment”.
“It’s not a matter of ‘can we afford this?’ It’s the fact that we can’t afford not to do it,” Cr Williams said.
Faster Rail is not as fast as high speed rail, which delivers speeds up to 350km/h, but could run at about 160km/h with top speeds of up to 200-250kmh, with limited stops.
It would be connected to the light rail networks on the Gold Coast and Sunshine Coast in order to ease congestion on major arterials.
Other projects include the Brisbane Metro, Cross River Rail and road upgrades, including the Pacific, Sunshine, Centenary, Ipswich and Logan motorways and the Bruce, Warrego and Mt Lindesay highways.
The study also took into account emerging technologies including autonomous vehicles.
It was first proposed in 2016, and began in September 2017, with the aim of bringing together multiple local, state and national transport studies into one cohesive plan.
The South East Queensland region takes in the Brisbane City, Ipswich City, Lockyer Valley Regional, Logan City, Moreton Bay, Redland City, Scenic Rim Regional, Somerset Regional, Sunshine Coast and Toowoomba Regional council areas.