City of LOGAN PROFILE
JULY 2017 PROUDLY
office of Economic Development
City of LOGAN
Contents City of Logan................................ 3
Logan City
AUSTRALIA
Noosa Heads
Snapshot....................................... 5 The City of Logan is located in South-East Queensland, situated between the City of Brisbane to the north and City of Gold Coast to the south.
The City of Logan at a glance...... 6 Population..................................... 9 Demographics............................ 11 Employment and labour force... 12
The Logan local government area — the gateway to Queensland and the Asia Pacific region — covers 957 square kilometres and has a population of nearly 314,000 people, or 6.5% of Queensland’s population.
Business..................................... 15 Building and construction.......... 17 Residential market.......................... 19 Industrial market.......................... 21 Resources and definitions......... 23
Kilcoy
Looking ahead to the next 20 years, Logan will continue to be one of the fastest growing cities Coolum Beach in Queensland. The population is expected to increase by close to 200,000 people and the City of Logan’s objective is to create at least 53,000 jobs to support this Mooloolaba population growth.
business and community services, property and construction, and transport and logistics. This already diverse economy has the potential to grow and diversify further with emerging sectors including AgTech, food and beverage processing, health and aged care. Given its central geographic location and available young workforce, Logan is ideally placed for continued growth in the South-East Queensland region.
Logan is a major economic destination within South-East Caloundra Queensland. Key industries in the city’s economy include manufacturing and retail sectors,
SUNSHINE COAST
Esk CITY OF LOGAN Brisbane Airport
Brisbane Gatton
Port of Brisbane
AUSTRALIA
Ipswich
CITY OF LOGAN
Beenleigh
Rail link Major arterial roads Major roads
Gold Coast Boonah
Beaudesert Surfers Paradise Gold Coast Airport
Tweed Heads
3
Snapshot The City of Logan is home to nearly 314,000 people from 217 cultures. The Logan local government area is also a very young city with around 57% of residents aged under 40. This adds energy and enthusiasm to our community and gives us a real vibrancy. The City of Logan’s residential neighbourhoods continue to flourish, giving locals a wide range of lifestyle options, from leafy suburbs to bushland acreage. Many older suburbs predating the city’s short history have been revitalised through urban and community renewal partnership projects between Logan City Council and the Queensland Government. Given its strategic geographic location and capable young workforce, the City of Logan has thriving commercial, retail and manufacturing precincts, as well as healthy service and wholesale industries. Logan is ideally located between Brisbane, Ipswich and the Gold Coast, and has direct access to the national highway and rail networks. It has thriving light industrial precincts at Marsden, Crestmead, Slacks Creek, Loganholme and Berrinba, which are continuing to expand to meet the demand of quality, responsible industry.
parks, many featuring dog offleash areas, exercise facilities, play equipment and skate ramps. There are pristine bushland reserves and wetlands, as well as manicured waterfront parks along the Logan and Albert Rivers. The natural environment is an important facet to life in Logan, and a popular place to enjoy the bush and its wildlife is the Daisy Hill State Forest and Daisy Hill Koala Centre. There is plenty to do in the City of Logan for lovers of sport and recreation. A wide range of activities are available around the city, from the traditional cricket, rugby, football, netball and tennis to ‘newer’ sports like futsal. We have everything from pigeon racing and model sail boating to bocce, kayaking, martial arts and rocket launching. Our facilities include meticulously manicured golf courses, spectacular aquatic facilities and the multi-purpose Insports Centre, which features basketball courts as well as a gymnasium, rock-climbing wall, cafe and function room. Logan has a range of attractions that capture the city’s history and
cultural diversity. Visitors can step back in time at one of Logan’s oldest houses, Mayes Cottage, in Kingston, which has been converted into a house museum circa 1930s, or they can wander through the tranquil gardens of the Chung Tian Buddhist Temple at Priestdale, tucked away in a natural bushland setting. Cultural pursuits feature strongly at the regional Logan Art Gallery which showcases the best works by local and visiting artists. Art can also be found on display in commercial galleries around town, as well as at the historic Kingston Butter Factory and Community Arts Centre. The Butter Factory is home to the Butterbox Theatre (used by local performing arts groups), the Buttermaid’s Kitchen, the Logan City Historical Museum and an arts and craft co-op. The opening of the Logan Entertainment Centre in 2002 ushered in a new era for events and entertainment in the city. The city has its own venue for conferences, seminars and major functions. The centre allows locals to see major touring acts without having to leave the city.
The City of Logan has nearly 950 environmental and recreational
5
The City of Logan at a glance Logan’s Gross Regional Product (GRP) is estimated at $11.243 billion. Logan represents 5.8% of South East Queensland’s GRP of $191.374 billion, 3.5% of Queensland’s Gross State Product (GSP) of $316.208 billion and 0.68% of Australia’s Gross Domestic Product (GDP) of $1.655 trillion.
Emerging industries include: • transport and logistics • food manufacturing and processing • advanced manufacturing
72,746 Jobs (2011)
20,393 Businesses (2016)
• health care
143,009
GRP
Labour Force Residents (March 2017)
$11.243bn (2016)
$40,435 GRP per capita (2016)
313,785
an
65.3%
se
Families (2016)
12%
109,876
Output $21.789bn (2016)
Value-added $9.951bn (2016)
5 –6 4
65.3%
Que en
19.4%
Que en
Que en
(unemployment March 2017) 1 nd sla
GRP ($bn)
Output ($bn)
Value Added ($bn)
Regional Exports ($bn)
Regional Imports ($bn)
City of Logan
$ 11.243
$ 21.789
$ 9.951
$ 4.373
$ 5.126
South East Queensland
$ 191.374
$ 391.529
$ 177.277
$ 74.978
$ 75.647
Queensland
$ 316.208
$ 667.276
$ 294.783
$ 102.811
$ 108.248
Private Dwellings (2016)
5.6% outh 0-14 dy ls an
Logan City Council is working with these industries to help the economy grow even further.
79,441
rs 65+ nio
Log
an
1
Log
22.5%
Log
an
yo
64 5–
• AgTech
By 2041 Logan will be home to two satellite cities — Yarrabilba (45,000 residents) and Greater Flagstone (120,000 residents).
Population (2016)
Age breakdown of residents (2016) 0-14 uth
• education and training
Out of the 560 local governments in Australia, the City of Logan ranks seventh in population and has a budget allocation of $779 million in the 2017/18 financial year.
s nd sla
Regional Exports $4.373bn (2016)
eniors 65+
15.2%
Regional Imports $5.126bn (20156)
Workforce Qualifications (2011) 3% Postgraduate Degree Level 2% Graduate Diploma and Graduate Certificate Level 19% Bachelor Degree Level 17% Advanced Diploma and Diploma Level 58% Certificate Level
2011 to 2016 population 55,949 increase
Largest Employing Sector 15.9% Retail Trade
Largest Job Growth Sector 2,753 Health Care & Social Assistance
Largest Business Sector 4,940 Construction
2011 to 2016 Change in Dwellings 9,114 increase
7
Population The current estimated resident population is 313,785 and is expected to increase by up to 200,000 people within the next 20 years and City of Logan’s objective is to create at least 53,000 jobs to support this population growth.
Population forecast Between 2016 and 2036, the population of Logan LGA is projected to increase to an estimated 490,500 people. The average annual projected population growth between 2016 and 2036 of 2.2% is greater than the average growth rates experienced over the previous 10 years.
The proportion of the City of Logan population aged 65-79 years is expected to continue to increase from 9.4% of Logan LGA’s total population in 2016 to 11.8% in 2036. The proportion of persons aged 80 years or more is expected to more than double during this time (from 2.13% to 4.95%).
Actual
500,000
Projected
City of Logan Population
400,000 300,000 200,000 100,000
The Australian Census for 2016 results for the City of Logan usual resident population is 303,386.
Projections by age
600,000
0 2016
2021
2026
2031
2036
0 –14
15–29
30–49
50–64
65–79
80+
Total
2016
71,587
65,531
86,151
52,564
29,420
6,658
311,911
2021
78,203
67,958
92,468
57,473
36,364
8,878
341,344
2026
86,349
76,215
102,034
63,729
43,418
12,710
384,455
2031
94,452
85,320
112,306
70,118
49,395
18,318
429,909
2036
105,797
97,285
125,090
80,205
57,837
24,307
490,521
Source: Queensland Government Population Projections, 2016 (QGSO)
9
Demographics Resident age profile
Weekly individual income
Overall, 27% of the population is aged between 0 and 17 compared with 23% for South-East Queensland (SEQ), 56% of the population is aged between 18 and 59 compared with 57% for SEQ, and 17% is aged 60 years and over, compared with 20% for South-East Queensland.
Overall, 10.6% of Logan residents earned a weekly gross income of over $1,500 compared with 16% for SEQ, and 42.5% earn between $500 and $1,499 per week compared with 37.4% for SEQ. Weekly Individual Income
Negative/Nil income
Resident Age Profile
$1-$149 $150-$299
0-4 years
7.6% 6.3%
$300-$399
10.8% 9.2%
$400-$499
12-17 years
8.5% 7.4%
$500-$649
18-24 years
9.7% 9.7%
25-34 years
14.1% 14.3%
$1,000-$1,249
35-49 years
20.3% 20.7%
$1,250-$1,499
50-59 years
12.0% 12.4%
$1,500-$1,749
60-69 years
9.7% 10.2%
5-11 years
70-84 years 85+ years
$650-$799 $800-$999
$1,750-$1,999 $2,000-$2,999
6.3% 8%
$3,000 or more
Logan
1.1% 1.9%
South East Queensland 5%
10%
15%
20%
Not stated
25%
0%
Housing tenure Compared with South-East Queensland, there is a higher proportion of households paying off their dwelling in Logan and a lower proportion of the population who own their properties freehold.
9.8% 8.9% 4.1% 4.1% 7.5% 6.7% 8.8% 8.2% 8.3% 8.1% 8.0% 7.9% 9.2% 8.0% 9.9% 8.7% 9.4% 8.8% 5.9% 6.0% 4.3% 5.1% 2.5% 3.3% 2.8% 4.7% 1.0% 2.9% 8.4% 8.5%
Logan South East Queensland
2%
4%
6%
8%
10%
Housing Tenure
Fully owned
21.9% 26.2%
Mortgage
38.2% 33.1%
Renting
31.7% 32.5% 4.0% 3.1%
Renting - Social Housing
27.3% 28.9%
Renting - Private Renting - Not stated
0.4% 0.4%
Other tenure type
0.6% 0.9%
Logan
7.6% 7.3%
Not stated 0%
South East Queensland 10%
20%
Source: Australian Bureau of Statistics, Census of Population and Housing 2016. Compiled and presented by .id , the population experts.
30%
40%
11
Employment and labour force It is estimated that 72,745 people work in Logan. Logan represents 6.14% of the 1,185,378 people working in South-East Queensland and 3.7% of the 1,967,425 people working in Queensland.
Industry Sector Profile 2006 to 2011 Despite a fall in some industries such as ‘Manufacturing’ (-603) and ‘Rental, Hiring and Real Estate Services’ (-102), there was an overall increase of 6,946 jobs in City of Logan between 2006 and 2011. The largest employment changes by industry were: • Healthcare and Social Assistance (+2,753) • Professional, Scientific and Technical Services (+839) • Public Administration and Safety (+691)
Source: Remplan
Employment in Logan Retail Trade -11,567 Health Care & Social Assistance - 9,226 Manufacturing - 8,549 Education & Training - 7,349 Construction - 6,720 Accommodation & Food Services - 4,574 Wholesale Trade - 3,652 Public Administration & Safety - 3,389 Professional, Scientific & Technical Services -3,274 Transport, Postal & Warehousing - 3,264 Other Services - 3,192 Administrative & Support Services - 2,394 Rental, Hiring & Real Estate Services - 1,522 Financial & Insurance Services - 1,423 Arts & Recreation Services - 707 Electricity, Gas, Water & Waste Services - 689 Agriculture, Forestry & Fishing - 589 Information Media & Telecommunications - 525 Mining- 140
Of the 123,619 employed residents in the City of Logan, 45,009 live and work within the city. In addition to the daily export of 78,610 people, the City of Logan imports 27,736 people who come to work in the city each day.
0 2,000
6,000
10,000
14,000
Workers (working in Logan) by Age 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 over 84
Managers Professionals Technical and Trades workers Community and Personal Service workers Clerical and Administrative workers Sales workers Machinery Operators and Drivers Labourers Not Stated - Inadequately described
6,097 7,262 15,169 16,639 15.695 9,995 1,742 140 6
0
Workers (working in Logan) by Occupation
5
10 15 (1,000s)
20
8,651 11,998 10,021 7,762 11,212 9,804 5,213 7,424 661
0
2
4 6 (1,000s)
8
10
12
Skills Profile Professionals
11.89% 12.58%
Clerical and Administrative Workers
16.49% 22.57%
Technicians and Trades Workers
13.78% 12.38%
Sales Workers
10.67% 10.14%
Managers
15.41% 16.94%
Community and Personal Service Workers
13.48% 10.60%
Labourers
7.17% 5.48%
Machinery Operators and Drivers
10.21% 8.30%
Not stated - Inadequately described
0.91% 1.02%
Work in Logan
0
5
10
15
20
25
30
Work in South East Queensland
Source: Remplan
13
Business Business Counts by Industry
Business Counts by Industry
As at June 2016, there were 20,393 businesses operating in the City of Logan. The largest number of registered businesses is in the Construction sector (5,157 businesses), followed by Transport, postal and warehousing (2,153). Between 2014 and 2015, the number of registered businesses increased slightly from 19,541 to 19,548. The number of Retail businesses as declined from 1,303 for June 2014 to 1,256 for June 2016, and the number of Manufacturing businesses have experienced a decline from 1,224 for June 2014 to 1,165 for June 2016.
Construction - 5157 Transport, Postal and Warehousing - 2153 Rental, Hiring and Real Estate Services -1815 Professional, Scientific and Technical Services - 1774 Financial and Insurance Services - 1451 Retail Trade - 1256 Other Services - 1215 Manufacturing - 1165 Administrative and Support Services - 876 Wholesale Trade - 774 Health Care and Social Assistance - 731 Accommodation and Food Services - 614 Agriculture, Forestry and Fishing - 387 Education and Training - 227 Arts and Recreation Services - 201 Information Media and Telecommunications - 116 Public Administration and Safety - 99 Electricity, Gas, Water and Waste Services - 82 Mining - 27 Not Classified - 273 0
Number of Businesses:
20,393 (2016)
2,000
4,000
Largest Sector by Business Count
Largest Employing Sector
25%
15.9%
(Construction - 5,157 businesses) (2016)
Retail Trade (2014)
Business Counts by Staff
6,000
Business Counts by Staff Between June 2015 and June 2016 there was an increase in non-employing businesses of 5.9%. In the same period, there was also an increase in businesses employing between 1-4 staff. There was a slight decrease in the number of businesses employing between 5-19 staff and 20-199 staff.
15,000
12,000
2014 2015
9,000
2016
6,000
Non employing
1-4 staff
5-19 staff
429
433
435
1,956
1,958
1,875
5,718
5,548
5,526
12,281
11,597
0
11,693
3,000
20-199 staff
12
12
9
200+ staff
Source: Australian Bureau of Statistics, Counts of Australian Businesses, including Entries and Exits, Cat. 8165.0. (Jun 2014, 2015 and 2016, released 21 Feb 2017) Logan City Council Online Economic Profile: www.economicprofile.com.au/logan
15
Building and construction There was a significant increase in the number and value of residential dwelling approvals between 2013/14 and 2014/15 rising from 1,540 approvals with a value of $344.9 million to 2,310 approvals with a value of $517.8 million.
Residential Building Approvals - Number 3,000 839
320
New houses
2,500
502
Other residential
2,000 1,500
424
200
1,000
355
516
219
202
242
827
780
1,066
873
1,874
855
844
1,185
2,310
2,053
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
500 0
8.30%
8.30%
Note: Red = new houses; Blue = other dwellings including units, terraces and other dwelling types
Building Approvals - Value 1,000
Residential Non-residential
2005-06
2006-07
2007-08
2008-09
2009-10
2011-12
2012-13
2013-14
$165.50 2014-15
$590.40
$517.80
$142.11 $344.87
$283.41 $296.83
$118.25 2010-11
$260.29
$590.69
$226.51 $143.91
$282.48 $153.77
$246.24 $387.57
0
$269.57
300
$222.77 $286.60
400
$235.51
600
$144.00
$208.43
800
2015-16
Note: Residential includes all new dwellings, alterations and additions; Non-residential includes all non-residential buildings eg. office, industrial, retail, education, etc.
Source: Logan City Council Online Economic Profile www.economicprofile.com.au/logan
17
Residential market There was a 13.6% growth in overall land valuation for Logan in 2017 mainly driven by a demand for affordable land and housing.
Lot Approvals and Registrations
3500
A total of 3,221 lots were approved in the year ending December 2016. Total lot approvals decreased by 5% compared with the previous year, and total lot approvals were 857 more than the 5 year annual average of 2,364.
2500
3,221
2,756
2000 1500
In the year ending March 2017 a total of 2,097 lots were registered. Total lots registered increased by 45% compared with the previous year, and total lots registered were 627 more than the 5 year annual average of 1,470. 5,434 detached dwellings were sold in the year to December 2016 and 1,033 units and townhouses were sold with a median sale price of $380,000 across all dwelling sales.
3,379
3000
1,858
1000 500 0
2013
2014
2015
2016
Total Lot Approvals
Source: Residential Land Development Activity Profile, June Quarter 2015, Logan
Median Property
2015
2016/2017*
Price Growth
House
$387,500
403,000
4.0%
Unit
$250,000
$258,000
3.2%
Prices (Residential)
*Median price quoted captures sale transactions from 1 January 2016 to 31 Mach 2017. Source: PRD Nationwide, South East Queensland Property Hotspots, 1st Half 2017.
Median Rental Prices
Dec Qtr 2015
Dec Qtr 2016
Two Bed Units / Flats
$270
$280
Three Bed Units / Flats
$325
$330
Two Bed Townhouses
$280
$285
Three Bed Townhouses
$340
$335
Two Bed Houses
$290
$298
Three Bed Houses
$345
$350
(Residential)
Source: The State of Queensland Residential Tenancies Authority, 2016 Median Rents Quarterly Data
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Industrial market The Logan Motorway is a major freight transport corridor, less than 25 kilometres from Brisbane’s CBD and connects to the Ipswich, Gateway and Pacific Motorways. It has easy access to Brisbane Airport and the Port of Brisbane. The City of Logan is a nexus for industrial and road-dependent industries making it an attractive region for these businesses. Logan Enhancement Project Construction is underway for Transurban’s $512 million Logan Enhancement Project - an integrated transport network. Major upgrades to Mt Lindesay Highway/ Beaudesert Road interchange and the Wembley Road/Logan Motorway interchange will unlock key industrial land in surrounding areas eg. Berrinba, Crestmead. www.loganenhancementproject .com.au
Businesses that have moved to the area to capture the City of Logan’s geographical advantages: • Sigma Pharmaceuticals: Construction of new 14,990 Sq M warehouse and distribution centre - due to open October 2017 • National Tiles: Lease for 13,160 Sq M new warehouse and distribution centre on in Berrinba • Avery Dennison: Lease for of 4,986 Sq M new 24hr warehouse and distribution centre in Berrinba, opened July 2017 • The GPT Group: Purchased 21ha of land in Berrinba to develop a transport and logistics park (2015)
M1 / Logan Motorway Corridor*
Prime
Secondary
Low
High
Low
High
Rental Net Face ($/m )
100
125
70
95
Incentives (%)
10
15
8
12
Yield - Market (%)
6.75
7.50
8.75
9.5
IRR (%)
8.50
9.25
9.50
10.00
Outgoings - Total ($/m2)
15.00
25.00
15.00
20.00
Capital Value ($/m2)
1,400
1,900
750
1,250
2
Land Values 3,000-5,000 Sq M ($/m )
300 (high)
225 (low)
Land Values 10,000-50,000 Sq M ($/m2)
250 (high)
200 (low)
Land Values 10 ha and above ($/m )
210 (high)
150 (low)
2
2
*Includes Crestmead, Marsden, Browns Plains, Meadowbrook, Berrinba, Loganlea, Loganholme, Heathwood, Larapinta, Parkinson, Underwood, Springwood, Yatala, Stapylton, Kingston, Beenleigh, Eagleby, Hillcrest. Source: Savills, National Industrial, Q1/2017, Savills Research, Australia.
Logan Motorway Corridor Industrial Supply Summary m2
4,197,163
Properties
421
<3,000 m2
>=3,000 m2
<3,000 m2 (%)
>=3,000 m2 (%)
370,607 197
3,826,556
8.8%
91.2%
224
46.8%
53.2%
Source: Industrial Vacancy Report, Property Council of Australia, Queensland Division, Final Report, May 2016, AEC Group
Recent Major Leases Logan Motorway Corridor
Tenant
Date
m2 GLA
$/m2 Net
Term (Years)
11-19 Kellar Drive, Berrinba
DHL Excel Supply Chain
Dec-16
7,412
$115
N/A
Lot 102, Wayne Goss Drive, Berrinba
National Tiles
Nov-16
13,160
$109
5
Date
Sale $
m2 GLA
$/m2
IY
9-13 Titanium Court, Crestmead
Dec-16
$7.50m
6,472
$1,159
7.46%
41-55 Platinum Street, Crestmead
Jul-16
$15.92m
11,214
$1,420
7.54%
Recent Sales >$5 million Logan Motorway Corridor
Source: m3property Research, m3commentary Brisbane Industrial, Winter 2017
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Resources and Definitions • Logan City Council: www.logan.qld.gov.au • Logan City Council Online Economic Profile: www.economicprofile.com.au/logan • Logan City Council Online Community Profile: www.communityprofile.com.au/logan • Queensland Government Population Projections, 2016 (QGSO) • Austlian Bureau of Statistics • Depament of Employment, Small Area Labour Markets Australia • Residential Tenancies Authority Queensland • Residential Land Development Activity Profile, Logan Regional Council, Queensland Treasury and Trade, Government Statistician, 2017 • Valuer-General’s 2017 Property Market Movement Report • PRD Nationwide, South East Queensland Property Hotspots, 1st Half 2017 • 2016 Median Rents Quarterly Data, The State of Queensland Residential Tenancies Authority • Savills, National Industrial, Q1/2017, Savills Research, Australia • Industrial Vacancy Report, Property Council of Australia, Queensland Division, Final Report, May 2016, AEC Group • m3property Research, m3commentary Brisbane Industrial, Winter 2017
Disclaimer: All figures and data presented in this document are based on data sourced from the Australian Bureau of Statistics (ABS), and other government agencies. Using ABS datasets, the regional economic modelling software ‘REMPLAN Economy’, has been applied to generate industrial economic data estimates. This document is provided in good faith with every effort made to provide accurate data and apply comprehensive knowledge. However, REMPLAN does not guarantee the accuracy of data nor the conclusions drawn from this information. (07) 5689 1499 / (03) 5444 4788 www.remplan.com.au
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Logan Office of Economic Development www.loed.com.au (07) 3412 4888 loed@logan.qld.gov.au