MARKET OUTLOOK NEWMARKET A vibrant residential area surrounded by an abundance of lifestyle amenity, education and employment hubs makes Newmarket an ideal place in which to live, work and play.
Connectivity & Accessibility 02 Infrastructure 02 Demographics 02 Education 03 Employment 03 Residential & Rental Analysis 04 Prepared exclusively for
Your Style Homes November 2016
Top: Local retail amenity; Bottom left: Wilston State School; Bottom right: Recreational amenity
CONNECTIVITY & ACCESSIBILITY
Wilston
Herston
Newmarket is widely regarded as a desirable residential area, driven by its accessibility and variety of amenity.
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Newmarket is a thriving suburb located 5 kilometres from the Brisbane CBD. In less than 15 minutes residents can reach Brisbane CBD and other major precincts via Brisbane rail services from Newmarket train station or the road network. With continued investment into Brisbane’s transport infrastructure, Newmarket’s accessibility to the Brisbane CBD will only continue to improve. Known for its local schools and the nearby Queensland University of Technology at Kelvin Grove, the Newmarket area is ideal for young professionals and families. Newmarket is a tightly held residential area providing residents with a host of lifestyle amenities, including numerous cafés, restaurants and boutique specialty shops, plus large parks, picnic areas, bike trails and walking paths.
INFRASTRUCTURE
16 07 15 04 14 Newmarket Train Station
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HERSTON QUARTER REDEVELOPMENT $1.1 billion — Planned
The Herston Quarter redevelopment will create a landmark Brisbane destination and a global benchmark for health precincts. The redevelopment will consist of a 132-bed public specialist rehabilitation and ambulatory care centre, a new private hospital, restoration and conversion of heritage buildings to student accommodation, aged care and retirement living, residential accommodation, commercial offices, childcare facilities, retail and restaurant facilities and associated amenity. UNIVERSITY OF QUEENSLAND — ORAL HEALTH CARE CENTRE $134 million — Complete The University of Queensland’s Oral Health Care Centre is Australia’s largest and most advanced tertiary oral health facility. BALLYMORE REDEVELOPMENT STAGES 1–5 $50 million — Planned The redevelopment of Ballymore will provide a new sports academy and community health and fitness centre. UNIVERSITY OF QUEENSLAND — HERSTON IMAGING RESEARCH FACILITY $24 million — Complete Opened in December 2015, the Herston Imaging Research Facility is one of Australia's only facilities devoted entirely to clinical research and is located within Australia's largest hospital precinct. TRANSAPEX $10 billion — Complete BRISBANE METRO $1.5 billion — Proposed CROSS RIVER RAIL — Proposed Prepared by Urbis; Source: Cordell Connect 2
Market Outlook Newmarket
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DEMOGRAPHICS The Newmarket Catchment has a large proportion of Generation Y residents who prefer low-maintenance living in a thriving location. WHO LIVES IN NEWMARKET?
Newmarket Catchment
Brisbane LGA
Average age of residents
34
36
Couple family (no children)
35.6%
37.0%
Employed as professionals & managers
51.9%
34.4%
Gen Y residents (20–34)
29.0%
22.4%
Rented dwellings
41.3%
33.7%
Prepared by Urbis; Source: ABS Census 2011 Note: Newmarket Catchment includes the suburbs of Ashgrove, Herston, Kelvin Grove, Newmarket and Wilston.
Brisbane CBD
Kelvin Grove
Ashgrove
ENTERTAINMENT, SHOPPING & DINING
12
18
01 Reading Newmarket Shopping Centre
08
06
02 Newmarket Hotel KE
LVI N
G RO VE
13
04 Homezone Windsor
RO
05 Aldi Kelvin Grove
AD
05
03 Enoggera Road Shops
06 Kelvin Grove Urban Village 07 Ballymore Stadium
Newmarket
NEWMARKET ROA
01 D
08 Suncorp Stadium 02
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INFRASTRUCTURE & EMPLOYMENT
03
09 Newmarket Medical Centre 10 Royal Brisbane and Women’s Hospital RECREATION & GREEN SPACE
EN O G
11 12 13 14 15 16 17
G ER
AD A RO
17 19
Newmarket Olympic Pool Victoria Park Golf Course Spencer Park McCook Park Finsbury Park Downey Park Bank Street Reserve
EDUCATION
18 Queensland University of Technology 19 Newmarket State School 20 Wilston State School
EDUCATION
EMPLOYMENT
PRIMARY, SECONDARY AND TERTIARY EDUCATIONAL INSTITUTIONS Newmarket Catchment
Located less than 5 kilometres from Queensland’s largest employment node, the Brisbane CBD, the Newmarket Catchment is expected to benefit from an additional 66,655 new jobs by 2031.
Queensland University of Technology, Kelvin Grove
10,741 STUDENTS Five Public Schools
The Newmarket Catchment alone is expected to provide an additional 7,657 new jobs by 2031, increasing by 1.8 per cent per annum over the next 15 years. PROJECTED EMPLOYMENT GROWTH 2016–2031 7,657
1.8% per annum
Bowen Hills, Fortitude Valley & Newstead
15,978
2.0% per annum
Five Private Schools
Brisbane CBD & Spring Hill
43,020
1.3% per annum
Prepared by Urbis; Source: Department of Education and Training, Queensland University of Technology, St Ambrose’s Primary School, Marist College Ashgrove, Mt St Michael’s College, St Finbarr’s Ashgrove, St Columba’s Primary School.
TOTAL NEW JOBS
66,655
1.5% per annum
Prepared by Urbis; Source: NIEIR Employment Forecasts
Note: Newmarket Catchment includes the suburbs of Ashgrove, Herston, Kelvin Grove, Newmarket and Wilston.
Note: Newmarket Catchment includes the suburbs of Ashgrove, Herston, Kelvin Grove, Newmarket and Wilston.
4,183 students
3,505 students
Newmarket Catchment
Job Growth
Prepared exclusively for Your Style Homes
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New apartments New apartmentsgenerally generallycommand commandaarental rental premium over established apartments. premium over established apartments. Unsurprisingly, Unsurprisingly,this thisappears appearsto tobe bethe thecase casefor for the Newmarket the NewmarketCatchment Catchmentapartment apartmentmarket. market. The Residential The ResidentialTenancies TenanciesAuthority Authority(RTA) (RTA)provides provides median median weekly rental weekly rentaldata datafor forboth bothestablished establishedand andnew newapartments, apartments, based ononnew based newbond bondlodgements. lodgements.According Accordingto toRTA RTAdata, data, the the median weekly median weeklyrent rentfor forthe theNewmarket NewmarketCatchment Catchmentincreased increased byby 5.0 and 5.0 and3.8 3.8per percent centper perannum annumfor fortwo twoand andthree-bedroom three-bedroom apartments apartmentsrespectively respectivelyover overthe thepast past10 10years yearsto toJune June 2016. 2016. On-the-market(OTM) (OTM)data datacompiled compiledby byUrbis Urbisfor fornew new On-the-market and near-newapartments, apartments,indicates indicatesnew newapartments apartments and near-new are registeringpremiums premiumsover overthe theexisting existingproduct. product. New New are registering and near-newtwo-bedroom two-bedroomapartments apartmentsrecorded recorded aa and near-new medianweekly weeklyrent rentofof$490, $490,aa36.1 36.1per percent centpremium premium median over establishedproduct. product.Similarly, Similarly,three-bedroom three-bedroom over established apartmentsalso alsoachieved achievedaapremium premiumof of26.4 26.4per per apartments cent, registering a median weekly rent of $550. cent, registering a median weekly rent of $550. With a strongproportion proportionofofGeneration GenerationYYresidents, residents, With a strong paired withtheir theirdesire desiretotolive liveininlow-maintenance low-maintenance paired with dwellings,the theNewmarket NewmarketCatchment’s Catchment’snew newapartment apartment dwellings, product will likely continue to rent at premium prices. product will likely continue to rent at premium prices.
140 120
$1,000,000 $900,000 $1,000,000 $815,000 $900,000 $800,000 $815,000 $700,000 $800,000 $600,000 $700,000
120 100 100 80
$500,000 $600,000 $480,000 $500,000 $400,000 $480,000 $300,000 $400,000
80 60 60 40
$200,000 $300,000
40 20
$200,000 $100,000
200
$100,000 $0
0
$0
Period (quarterly) Period (quarterly) Prepared by Urbis; Source: APM PriceFinder Prepared Urbis; Source: APM PriceFinder Note: Theby Newmarket Catchment includes the suburbs of
Note: The Newmarket Catchment includes the and suburbs of Ashgrove, Herston, Kelvin Grove, Newmarket Wilston. Ashgrove, Herston, Kelvin Grove, Newmarket and Wilston.
AVERAGE ANNUAL UNIT GROWTH RATE AVERAGE ANNUAL UNIT RATE Newmarket Catchment vsGROWTH Brisbane LGA Newmarket June 2016 Catchment vs Brisbane LGA June 2016 5-year 5-year
10-year 10-year
Newmarket Catchment Newmarket Catchment unit price price growth growth unit
2.2% 2.2% PER ANNUM
3.7% 3.7% PER ANNUM
Brisbane LGA LGA Brisbane unit price growth unit price growth
1.9% 1.9%
3.1% 3.1%
PER ANNUM
PERANNUM ANNUM PER
PER ANNUM
PER ANNUM PER ANNUM
Prepared by byUrbis; Urbis;Source: Source:APM APMPriceFinder PriceFinder Prepared
EXISTING PRODUCT PRODUCTVS. VS. EXISTING ON-THE-MARKETAPARTMENT APARTMENTPRODUCT PRODUCT ON-THE-MARKET NewmarketCatchment Catchment— —June June2016 2016 Newmarket RTA RTA
OTM OTM
$360 $360
36.1% $490 $490 36.1% PREMIUM PREMIUM
$435 $435
$550 26.4% $550 26.4% PREMIUM PREMIUM
Prepared Prepared by byUrbis; Urbis;Source: Source:Residential ResidentialTenancies Tenancies Authority, Authority, Realestate.com.au Realestate.com.au
Note: RTA data is based on the Newmarket postcode which includes Note: RTA data is based on the Newmarket postcode which includes the suburbs Alderley, Enoggera, Gaythorne, Grange, Newmarket the suburbs Alderley, Enoggera, Gaythorne, Grange, Newmarket and Wilston. The on-the-market data is based on the suburbs of and Wilston. The on-the-market data is based on the suburbs of Ashgrove, Herston, Kelvin Grove, Newmarket and Wilston. Ashgrove, Herston, Kelvin Grove, Newmarket and Wilston.
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EMR 0995/B EMR 0995/B
RENTAL RENTALANALYSIS ANALYSIS
160 140
No. of Unit Transactions Median Unit Price No. of Unit Transactions Median House Price Median Unit Price Median House Price
Jun-96 Jun-96 Jun-97 Jun-97 Jun-98 Jun-98 Jun-99 Jun-99 Jun-00 Jun-00 Jun-01 Jun-01 Jun-02 Jun-02 Jun-03 Jun-03 Jun-04 Jun-04 Jun-05 Jun-05 Jun-06 Jun-06 Jun-07 Jun-07 Jun-08 Jun-08 Jun-09 Jun-09 Jun-10 Jun-10 Jun-11 Jun-11 Jun-12 Jun-12 Jun-13 Jun-13 Jun-14 Jun-14 Jun-15 Jun-15 Jun-16 Jun-16
has resulted in increased demand for residential dwellings. The area’s variety of lifestyle amenity and its ideal position The of thedemand area means residentialdwellings. haspremium resultednature in increased for residential The premium natureheld, of the area means residential dwellings are tightly resulting in a scarcity of unit dwellings areand tightly held,supply resulting in a scarcity of unit developments limited of new residential product. developments and limited supply of new residential product. Over the past 10 years the median unit price has increased thecent past per 10 years theNewmarket median unitCatchment price has increased byOver 3.7 per annum. has by 3.7 per cent perunit annum. Catchment recorded a median sale Newmarket price of $480,000 in thehas recorded a median unit sale price of $480,000However, in the June quarter 2016, based on 37 transactions. June quarter on 37 transactions. However, according to the2016, Urbisbased Apartment Essentials Q2 2016, according to theproduct Urbis Apartment Essentials Q2 2016, new apartment within the Inner West Precinct new apartment product within the Inner West (which includes the suburb of Newmarket), hasPrecinct been (which includes the suburb of Newmarket), has been transacting at a weighted average price of $664,655. transacting at a weighted average of $664,655. This demonstrates the value added forprice new apartment stock. This demonstrates the value added for new apartment stock. The desirability of the area is evident through the median The desirability of the area is evident through the median house price. The Catchment recorded a median house house price. The Catchment recorded a median house price of $815,000 for the June quarter 2016. This is price of $815,000 for the June quarter 2016. This is 70 per cent higher than the median price for units in 70 per cent higher than the median price for units in the area. The new unit product entering the market the area. The new unit product entering the market is an affordable option for young professionals and is an affordable option for young professionals and families who are seeking to move into the area. families who are seeking to move into the area.
160
Median sale price Median sale price
The Newmarket Catchment (comprising the suburbs ofThe Ashgrove, Herston, Kelvin (comprising Grove, Newmarket and Newmarket Catchment the suburbs Wilston) is a highly sought after residential area.and of Ashgrove, Herston, Kelvin Grove, Newmarket Wilston) is a highly soughtamenity after residential area. The area’s variety of lifestyle and its ideal position
UNIT SALES CYCLE Newmarket UNIT SALESCatchment CYCLE June 1996–June 2016 Newmarket Catchment June 1996–June 2016 Number of transactions Number of transactions
RESIDENTIAL ANALYSIS RESIDENTIAL ANALYSIS