Suburb Spotlight Redbank Plains, Brisbane
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Redbank Plains Overview Over 300 Custodians have purchased in the Redbank Plains area thus far. Redbank Plains has been, and still continues to be, a long-term strategy for Custodian for the following reasons: • Population Growth, Population Growth, Population Growth. At 4.7% per annum it is three times the national average.1 • Demand from first home buyers is changing the face of the area, creating a young and vibrant community (average age is only 26). 2 •T he large difference between Redbank Plains land prices and the surrounding suburbs of Brookwater, Springfield and Augustine Heights. 3 •T he ever-improving connectivity and transport infrastructure. (Refer to our Media section). •T he massive development pipeline. National developers Devine and Lend Lease Group continue to highlight the growth opportunities the area presents. Current recent sales evidence indicates that the Redbank Plains area as a whole has underperformed. Paying consideration to the underlying property market fundamentals, the suburb should correct back to above historical market norms in the medium to long term. This document is authored specifically for informative purposes for Custodian clients who have purchased in the Redbank Plains area
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Housing Industry Association Census Rpdata.com.au Figure 1: The approved Redbank Plains Super Centre
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Past Performance & Future Returns Over a 5 year period the performance in Redbank Plains has been mixed. The aftermath of the Global Financial Crisis, the Brisbane floods and the tapering off of the mining boom have all impacted negatively on the Brisbane property market. Redbank Plains was not exempt from the pain. However, it appears now that most investors in the Redbank Plains region have weathered the storm and should expect to see some capital appreciation into the future. As most economic commentators expect, the wider market in South East Queensland should correct to historical norm levels of growth over the next 3- 5 years. Unfortunately, clients who purchased in 2009 and 2010 did so at the top of the market. On an annual basis these investments have not experienced the same levels of growth that other high performing Custodian estates have. Different markets perform well at different times. This reiterates the importance of having a diversified property portfolio across several geographical locations. “By strategically diversifying across several locations the overall risks are reduced and overall performance more closely mirrors the wider market.” As always, we emphasise that property is a LONG TERM investment. The upside; a recent report for QBE conducted by Australia’s foremost property forecasters BIS Shrapnel, has projected Brisbane to experience the highest level of growth of all the major capital cities. Brisbane is expected to top 17% growth over the next three years. The report spoke on outer Brisbane specifically, stating: “ Price growth is forecast to strengthen over 2014/15. Rising first home buyer demand, as well as the ‘ripple effect’ of demand moving outwards as house prices in inner and middle Brisbane suburbs become less affordable, should contribute to positive growth in outer Brisbane. Low interest rates over the year will also assist demand.”
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Buy Land for Capital Growth The first step in the 7 Steps to Wealth programme states “Step 1: Buy land for capital growth�. The whole premise of the model states that the land component of your investment is what appreciates in value whilst the building component depreciates (all while providing rental income, depreciation and tax benefits). As new land supply falls short of satisfying the current market demand two market phenomena are experienced. The median lot size decreases and the median lot price increases. These two forces acting in unison have the compounded effect of driving increases in the dollar per square metre rate of your investment. Despite a few soft years, the dollar per square metre rate kicked 12% in South East Queensland for 2014 and the trend is expected to continue as the recovery phase of the property cycle matures.
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improved in 2014 due to a number of factors including: vacant Greenfield growth area lot sales, lots released to the market, The market and closing stock at the end of the quarter th sales • Continuing low interest rates and the expectation that Source: NLSP ales of vacant Recent rates Comparable will stay low for Land some time. Sales in Redbank Plains 1,172. This is • 2015 SomeUrban improvement in affordability, land “The pricesState of The Land” report4 illustrates The Development Institute of with Australia ial Crisis, this graphically stable overbelow; a number of years resulting in real falls in Median Land Price and Size ement. Median Land Price and Size the price of aPrice block ofand landSize (facilitated by a reduction in Median Land average lot size). 680 s a whole • Some improvement in confidence following a long mproved 630 period of pessimism fed by political instability and 28 dwellings rising unemployment. n the 580 • Less constrained lending criteria resulting in increased — the highest 530 liquidity within the home lending market. w on track 14/15 All of these factors have unlocked pent up demand.
SEQ
480
430 Within
South East Queensland, Moreton Bay continues mand for land to post the greatest numbers of sales in the region. 380 2013/14 The largest percentage increases in sales in 2014 occurred predictions on the Gold Coast, however this was off a low base and nately due was particularly concentrated around the Coomera and annual Pimpama areas. e sufficient 40,000 South East Queensland Lot Production of undersupply, Source: NLSP Quarterly Market Activity mencements Year Lots Year Median Median Per m² cessary to Released End Lot Size Price ($) land 4000 anding 3500 weak Stock (m²) price 3000 2500 2000 1500
2009
5383
1916
622
$248,000
$398
2010
6908
3225
623
$247,000
$396
1000 500
2011
4389
3601
617
$246,000
$399
2012
4291
3255
603
$242,000
$401
2013
Sales (lots per 2696 quarter) 6988
2014
10833
per quarter) $428 559Releases (lots $239,000
Closing 2057Stock (lots 509end quarter) $244,000
The 2015 U
$480
Source:NLSP NLSP Source:
This trend has been experienced, specifically, in Redbank Plains. A Custodian who purchased Lot 34 Penrose St, Redbank Plains in 2008 acquired the 675m2 parcel of land for $175,000 or $260/m2. Due to the continued reduction in lot sizes and price escalation the dollar per square metre rate has almost doubled over a seven year period (sales evidence below). Address
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Sale price
Area
$/m2
28 Mawson St
$162,900
329
$495
28 Cordeaux Cr
$177,900
430
$414
Cordeaux Cr
$157,900
325
$486
34 Huntly Cr
$170,000
406
$419
Cordeaux Cr
$184,900
433
$427
Cordeaux Cr
$175,900
387
$455
Full Report. http://www.udia.com.au/2015-udia-state-of-the-land-report
The Ripple Effect The suburbs neighbouring Redbank Plains continue to display median house price increases as supply in these areas tighten and demand remains. Brookwater and Augustine Heights now both have median house prices well over $500,000 and some sales as high as $1 million are being witnessed. These suburbs offer a highly desirable lifestyle amenity. But for many, they are becoming increasingly unaffordable. People who are looking to capitalise on the fantastic new lifestyle and employment opportunities offered by the East Ipswich growth corridor are spilling over to Redbank Plains as a result. Almost all Custodians purchasing in the Redbank Plains area did so at an affordable sub $400,000 price point. These investors should now look to see meaningful medium-to-long term growth as investors are priced out of the more established surrounding suburbs.
Springfield, 4 Bed Median $405,000
Augustine Heights, 4 Bed Median $520,000 Brookwater, 4 Bed Median $553,000
Springfield Lakes, 4 Bed Median $435,000
Source: www.realestate.com.au
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Comparable Sales History 14 Harold Reinhardt Drive, Redbank Plains Area: 480m2 Price: $372,500 Sale Date: 3 March 2015
32 Daryl Reinhardt Street, Redbank Plains Area: 706m2 Price: $410,000 Sale Date: 5 Feb 2015
27 Navickas Circuit, Redbank Plains Area: 600m2 Price: $375,000 Sale Date: 22 Dec 2014
24 Holterman Crescent, Redbank Plains Area: 411m2 Price: $376,000 Sale Date: 31 Oct 2014
All information is current and accurate as at April 2015.
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Established Capital Benchmarks 32 Ballow Crescent, Redbank Plains Area: 467m2 Price: $499,000 Sale Date: 19 Aug 2013
17 Cobbin Circuit, Redbank Plains Area: 642m2 Price: $470,000 Sale Date: 11 Aug 2013
5 Walden Street, Redbank Plains Area: 841m2 Price: $620,000 Sale Date: 23 Oct 2014
All information is current and accurate as at April 2015.
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Media $360 Million Community Planned For Ipswich Local Government Area TheUrbanDeveloper.com April 2015 ASX-listed developer Devine is set to launch a $360 million master-planned community for 3,000 people at Ipswich, west of Brisbane. Devine has announced plans to build Eden’s Crossing, a master-planned community that will include 960 lots on a 110-hectare site off School Road. The community will be directly adjacent to the 2,400ha White Rock-Spring Mountain Conservation Estate. A planned access road will be built in 2016 that will deliver direct access to the Centenary Highway meaning Springfield Central will be less than fiveminutes’ drive away. Construction on the community is expected to commence in mid-2015. Devine General Manager Communities Andrew Brimblecombe said Eden’s Crossing would be one of the best-connected communities in Ipswich. “ Eden’s Crossing is a master planned community that will provide buyers with an exciting opportunity to be part of the western growth corridor, an area that is in high demand and that offers excellent investment potential for the future,” Mr Brimblecombe said. “ There are significant infrastructure and development projects in the pipeline for the region including the new Redbank Plains Super Centre, which will include a Target and Coles supermarket.” “ Ipswich is a city that’s on the move and we believe Eden’s Crossing will be irresistible to property buyers looking for a smart investment, an exceptional lifestyle and a range of quality homes to suit all buyers.” Mr Brimblecombe said Eden’s Crossing would provide buyers with a desirable lifestyle with a range of amenities and facilities at their doorstep. Eden’s Crossing is a welcoming community that is well connected to nature and modern day conveniences,” he said. “ There are quality local shops and childcare within
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walking distance, including a Woolworths, and plans for a new school within the immediate catchment,” he said. “ Families will be able to enjoy a barbecue in one of the community’s four parks or enjoy bushwalking in the nearby White Rock-Spring Mountain Conservation Estate. A total of 35 hectares has been set aside as green open space so there will be plenty of places to relax, exercise or meet your neighbours.” Buyers will have plenty of choice when it comes to building at Eden’s Crossing. There is a range of home and land packages available to suit families, first homebuyers or empty nesters, all featuring quality fixtures and fittings. Buyers can also purchase a block of land and choose their own builder. Eden’s Crossing is located in the Western Growth Corridor, 13.5 kilometres to the Ipswich CBD and 34km to Brisbane and 11km from Springfield. Shopping centres nearby include Redbank Plaza and Orion Shopping Centre at Springfield Central.
Redbank Plains at Centre of Unprecedented Growth Queensland Times 18th December 2014 REDBANK Plains is fast developing as a boom suburb hot on the heels of the surprising pace of development at Springfield and the Ripley Valley. Three new residential developments and a major redevelopment of the shopping village on Redbank Plains Rd have just been announced and the city’s biggest road construction project is well under way in the suburb. The demand from first home buyers and young families is changing the suburb, historically known for its cotton, sugar cane and bee keeping in colonial settlement, to a demographic with an average age of 29. Half the people in the council division of Deputy Mayor Victor Attwood are under 18. Cr Attwood said the area had grown by 60% in the past few years. “ sIt has become one of the fastest growing parts of Ipswich,” he said. “ Springfield brought people to the area and for a lot of them, the price point was a bit too high so they moved a bit further west to Redbank Plains and I think the subsequent development at Ripley where they are selling faster than they ever thought possible shows you that people want to live here and if you offer them a good quality product at a good price they will respond to it.” The recently announced Redbank Plains Super Centre, quadrupling the size of the shopping village on Redbank Plains Rd, has now announced Target and Coles as the anchor tenants for the first stage of development. The two-stage development will begin construction early next year and is a joint venture between specialist retail property developer Capital Transactions and investment and advisory group, Alceon. Stage 2 includes the expansion and integration of the existing Woolworths centre. creating a master planned hub for the community. The retail village will have distinct precincts - a financial and services precinct, a specialty retail precinct and casual dining precinct. Alceon director Todd Pepper said the commercial upside for the project was significant.
“ The development is a response to the continued growth in population in the eastern suburbs of Ipswich, more than three times the Queensland and Australian averages,” he said. “ The trade area population will double in the next 16 years, and the Redbank Plains Super Centre will become a major asset for the community.” Meanwhile a 143-lot residential development has just been approved by Ipswich City Council on Mullins St, Redbank Plains. The new housing estate will feature lots ranging from 300sqm to 3500sqm. Council-owned company Ipswich City Developments Enterprises is also set to announce a major residential and commercial development located between Six Mile Creek and School Rd to start next year. Neighbouring Collingwood Park will be home to hundreds of new families with council approving 333 new residential lots for the new Woodlinks Village estate. The approval gives the green light for the first stages of a proposed 14-stage development consisting of more than 900 homes. The first stages will run off Collingwood Drive and feature lots ranging between 320sqm and 760sqm. Stage one will include a 5200sqm recreation park, with a further 7.9ha of linear parkland in stages seven and 11 and a cycleway, footpaths and roads. The developer will also build a pedestrian crossing at Goodna Creek to provide a link between the Woodlinks Village estate and the council-owned Harry Ratnam Park as part of the approval. The first phase of stage two works on council’s $6.5 million Collingwood Drive Extension, from Woodlinks Way to a new roundabout, is expected to open this weekend. It will link Redbank Plains Rd to Redbank Plaza and connect to the Ipswich Mwy. The road, which runs from the existing Collingwood Drive at Woodlinks Way to a new intersection on Redbank Plains Rd, is Ipswich’s largest single road building project this financial year. The second stage, linking Redbank Plains with Collingwood Park, is now 50% completed. Planning and Development Committee chairman Paul Tully said the pace of development in Ipswich’s eastern suburbs was reaching unprecedented levels. “ The Western Corridor will continue to be the fastest growing region in Queensland,” he said.
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Phone: 1800 174 999 Email: service@custodian.com.au
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PO Box 2256 Nerang, MDC, Queensland 4211 1800 174 999 service@custodian.com.au www.custodian.com.au