MARKET OUTLOOK
CARINA TOWNHOUSE/UNIT MARKET
RESIDENTIAL
RENTAL
The growth in popularity of townhouse product has been a trend driven on the back of affordability, amenity and convenience. Over the recent period, the quality of townhouse developments has seen significant change, particularly as their target market grows in scale, with this product typology now in favour with families, couples, downsizers and upsizers.
Short-term median weekly rental price growth for threebedroom townhouses across the Carina Catchment has been solid, recording 2.1 per cent per annum over the last 12 months, and 1.9 per cent per annum over three years. Similarly, long-term rental growth is also solid, recording 2.1 per cent per annum growth over ten years.
Whilst demand for this product may be increasing, supply is likely to be constrained. Recently Brisbane City Council approved an amendment to the City Plan which restricts the development of townhouses in certain zoned land. Townhouses already approved are not affected but this will impact future supply within the Council area. With only 23.6 per cent of the Carina Catchment made up of units and townhouses, this product type will become sought after.
Three-bedroom townhouses across the Carina Catchment have consistently recorded higher median weekly rental prices than three-bedroom houses – highlighting the popularity of this product type. TOWNHOUSE / UNIT MEDIAN PRICE GROWTH
6.3%
Carina Townhouse / Unit Market
20yr growth pa
The following insights focus on Carina and its immediate surrounds. Long-term median price growth has been significant across the townhouse and unit market in Carina, recording a figure of 6.3 per cent per annum over 20 years. Importantly, Carina offers a true value proposition when compared to other capital cities. When comparing proximity to the Central Business District (CBD), pricing for new townhouses in Carina is substantially more affordable than suburbs in both Sydney and Melbourne.
Prepared by Urbis; Source: APM PriceFinder
As the table adjacent indicates, there has been an increase in sales of townhouses and units priced from $550,000 and over - increasing from 16.7 per cent during 2015 to 25.2 per cent during 2019. New townhouses in the catchment are being marketed with prices starting at $599,000 and up to $945,000 (four bedroom) highlighting the strengthening market. This price bracket creep indicates a move towards a more premium product as the Carina townhouse market matures. Demand for this product type should increase as residents look towards low maintenance living and take advantage of the popularity of Carina’s proximity to employment, amenity and lifestyle nodes.
Prepared by Urbis; Source: APM PriceFinder
TOWNHOUSE / UNIT SALES BY PRICE BRACKETS PRICE BRACKETS
2015
2019
Up to $449,999
33.8%
41.1%
$450 - $549,999
49.5%
33.8%
$550 - $649,999
14.2%
19.2%
$650,000 and over
2.5%
6.0%
RENTAL PRICE AND GROWTH 3-bed townhouse
$480 $470
$470 $465
$453 $443
$390 $380
3-bed house
3-Bed Townhouse 1yr 3yr 10yr
3-Bed House 1yr 3yr 10yr
NEW AND NEAR-NEW THREE-BEDROOM TOWNHOUSES BEING ADVERTISED IN CARINA ARE REGULARLY ASKING RENTAL PRICES UPWARDS OF $550 PER WEEK.
Q4 2009
Q4 2016
2.1% growth pa 2.0% growth pa 2.1% growth pa
Q4 2018
1.1% growth pa 2.0% growth pa 2.1% growth pa
Q4 2009
Prepared by Urbis; Source: Residential Tenancies Authority Based on postcode 4152 Carina, Camp Hill, Carindale
Prepared exclusively for | Frasers Property | June 2020
CAPITAL CITY COMPARISON Urbis have undertaken a high-level analysis of several townhouse projects in Sydney and Melbourne which are comparable in price and amenity to new townhouse projects on offer in Carina. Carina is only 8 kilometres from the Brisbane CBD, again highlighting the inner Brisbane location and value proposition of the offering.
CAPITAL CITY RENTAL COMPARISON
BRISBANE
Brisbane
Sydney
Melbourne
Median Rent 2019
$380
$520
$425
Median Rent 2018
$375
$535
$420
Rental Growth
1.3%
-2.8%
1.2%
Yield
4.8%
3.8%
4.0%
Median Rent 2019
$420
$540
$425
Median Rent 2018
$415
$550
$425
Rental Growth
1.2%
-1.8%
0.0%
Yield
4.0%
3.1%
3.1%
CARINA
CBD
8km
CARINA
HOUSES
UNITS
To find a comparable Sydney townhouse you would need to travel up to 35 kilometres from the Sydney CBD. In Melbourne you would need to travel up to 21 kilometres from the CBD.
Prepared by Urbis; Source: APM PriceFinder 2019
MELBOURNE
= comparable projects
DISTANCE TO CBD
25.7%
SINGLE PERSON HOUSEHOLDS
5km
10km
69.4% 16.4%
$100,889
$435,000
RESIDENTS AGED 65 YRS +
8.5%
SINGLE PERSON HOUSEHOLDS
RESIDENTS AGED 65 YRS +
23km
80.5%
DISTANCE TO CBD
18.1%
SINGLE PERSON HOUSEHOLDS
FAMILY HOUSEHOLDS
20.2%
RESIDENTS AGED 65 YRS +
MEDIAN UNIT PRICE Q4 2019
= comparable projects
50.9%
72.4%
RESIDENTS AGED 20-34 YRS
WHITE COLLAR WORKERS
$68,015
$690,000
AVE. H.HOLD INCOME
17.9%
RESIDENTS AGED 20-34 YRS
$96,992
AVE. H.HOLD INCOME
MEDIAN UNIT PRICE Q4 2019
80.7%
WHITE COLLAR WORKERS
$874,500
MEDIAN UNIT PRICE Q4 2019
20km
CBD
ORAN PARK
ORAN PARK
FAMILY HOUSEHOLDS
AVE. H.HOLD INCOME
15km
SCHOFIELDS
45km
DISTANCE TO CBD
10.6%
88.2%
WHITE COLLAR WORKERS
5.3%
$120,981
$650,000
RESIDENTS AGED 65 YRS +
35km
85.3%
13.1%
SINGLE PERSON HOUSEHOLDS
69.2%
RESIDENTS AGED 20-34 YRS
SINGLE PERSON HOUSEHOLDS DISTANCE TO CBD
30.8%
FAMILY HOUSEHOLDS
AVE. H.HOLD INCOME
24.9%
FAMILY HOUSEHOLDS
RESIDENTS AGED 20-34 YRS
7.3%
$111,398
RESIDENTS AGED 65 YRS +
AVE. H.HOLD INCOME
MEDIAN UNIT PRICE Q4 2019
69.0%
WHITE COLLAR WORKERS
$664,995
MEDIAN UNIT PRICE Q4 2019
Prepared by Urbis; Source: ABS This publication was prepared on the instruction and for the sole use of Frasers Property and may not be relied on by any third party for any purpose without specific approval from Urbis Pty Ltd. All projections, opinions, forecasts and underlying assumptions (Content) are made in good faith as at the publication date in reliance on data and information sourced from reputable third-party suppliers and after taking account of reasonably foreseeable circumstances and events. Unforeseen and unknown risks, events or circumstances occurring after the publication date and known risks, events and circumstances the impact of which is not capable of prior assessment may affect the data & information and the Content. The COVID-19 pandemic is assumed not to have materially impacted the Content (unless otherwise stated). You must carefully consider the impact of the COVID-19 pandemic (including on the Content) when making any decisions regarding the assets or business activities to which this publication relates. This publication and its Content do not represent financial advice and was prepared without taking account of your financial or taxation situation or investment objectives, and you should have regard to these before making any decisions. This publication is subject to copyright. Except as permitted under the Copyright Act 1968, it (and any part of it) may not, in any form or by any means, be reproduced, stored in a retrievals system, transmitted or copied without prior written permission of Urbis.
Prepared exclusively for | Frasers Property | June 2020
P0022806/B
CLAYTON DONCASTER EAST
22.7%
53.2%
76.6%
WHITE COLLAR WORKERS
SCHOFIELDS
CLAYTON
21km
24.7%
RESIDENTS AGED 20-34 YRS
40km
DISTANCE TO CBD
10km
FAMILY HOUSEHOLDS
SYDNEY
DONCASTER EAST
CBD
5km