Urbis report U rbis report

Transcription

1 Urbis report 2016.

2 OUTLOOK A CONTEXT ON BUSINESS, CULTURE, LIFESTYLE AND RESIDENTIAL APRIL 2016 ACCESSIBILITY & AMENITY is home to the High Street retail strip which forms the Activity Centre, as well as the Plaza Shopping Centre, anchored by Coles and Kmart. WHY MELBOURNE? Melbourne has been voted as the world s most liveable city for five consecutive years according to the Economist Intelligence Unit s World Liveability Rankings POPULATION The population in is forecast to grow by 28% to 32,900 by provides an affordable apartment market that is located five kilometres from the CBD, making it suitable for young professionals, first home buyers and investors alike. DEMOGRAPHICS The age profile in is relatively young, with 52% of residents aged 20-49, compared to Greater Melbourne with 45%. EDUCATION There are six schools located within offering local residents both primary and secondary education options. INCOME THERE ARE FIVE TRAIN STATIONS LOCATED WITHIN. s average annual income for residents aged of $55,341 is 23% higher than Greater Melbourne. INFRASTRUCTURE INVESTMENT Within, there is $438 million worth of public and private infrastructure investment in the pipeline to RESIDENTIAL MARKET The median unit sale price for has grown 101% over the decade to December 2015, compared to the wider City of Darebin which experienced 75% growth. RENTAL MARKET Median weekly rents for one, two and three bedroom units in grew at an annual rate of 7.2%, 7.4% and 6.1% respectively over the decade to December % OF EMPLOYED RESIDENTS WITHIN WORK IN WHITE COLLAR JOBS. THE HIGH STREET RETAIL STRIP CONSISTS OF A MIX OF CONVENIENCE, FOOD AND BEVERAGE AND OTHER RETAIL FACILITIES.

3 ACCESSIBILITY & AMENITY is around five kilometres from the Melbourne CBD and is serviced by five train stations and two tram routes, providing access to Melbourne s City Centre. The southern edge of is positioned less than five kilometres north-east of the Melbourne CBD, with the suburb extending a further three kilometres north. Both the South Morang and Hurstbridge lines service, with five train stations within the suburb boundary; Croxton,, Merri, Westgarth and Dennis railway stations. There are 12 tram stops located along St Georges Road and High Street on Routes 11 and 86 respectively, providing additional access to Melbourne s City Centre and beyond. MCG PORT PHILLIP BAY MELBOURNE CBD Recreational space is provided by six parks, including the 13 hectare All Nations Park, McDonnell Park, Johnson Park, Batman Park, R Thomson Reserve and Merri Park, extending along Merri Creek, the south eastern boundary of the suburb. Additionally, the Golf Club and the Aquatic & Recreation Centre provide local sporting facilities. PARK WESTGARTH TRAIN STATION MERRI TRAIN STATION EDINBURGH GARDENS PIEDIMONTE S SUPERMARKET The Plaza Shopping Centre consists of 71 stores, including K-Mart and Coles, with Aldi located nearby. Additionally, the Activity Centre runs along High Street, which is home to 147 businesses, including bars, restaurants, cafes, chemists, banks, medical centres, retail stores and the historic Westgarth Theatre, providing excellent local amenity. WHY MELBOURNE? SANTA MARIA COLLEGE PLAZA SHOPPING CENTRE ALDI IGA ACTIVITY CENTRE TRAIN STATION ST GEORGES ROAD MERRI PARK Melbourne has been awarded the title of the world s most liveable city for five consecutive years by the Economist Intelligence Unit. The ranking recognises Melbourne s health, education and infrastructure, for which Melbourne received perfect scores. The study also recognises the city s cultural offering, clean environment and political stability. The city is renowned as Australia s sporting and events capital, hosting a number of international events annually. These include the Formula One Grand Prix, Melbourne Cup Spring Racing Carnival, Australian Open Tennis Grand Slam and the International Food and Wine Festival. ALL NATIONS PARK ACTIVITY CENTRE: 16 Hair/Beauty/Massage 13 Specialty Retail 20 Restaurants COLES 10 Fashion/Jewellery/Shoes 10 Specialty Services Source: highstreetnorthcote.com.au HIGH STREET CROXTON TRAIN STATION Source: Economist Intelligence Unit MOST LIVEABLE CITY (Ranking out of 100) Melbourne, Australia: 97.5 #1 Vienna, Austria: 97.4 #2 Vancouver, Canada: 97.3 #3 Toronto, Canada: 97.2 #4 Adelaide, Australia: 96.6 #5 Calgary, Canada: 96.6 #5 2 MARKET OUTLOOK MARKET OUTLOOK 3

4 DEMOGRAPHICS, EDUCATION & EMPLOYMENT is popular with educated young professionals, with 52% of residents aged and 85% of employed residents working in white collar jobs. is to recei e 4 8 million worth of public and pri ate infrastructure in estment through to 20 9 that will enhance the amenity and infrastructure a ailable to residents. INFRASTRUCTURE INVESTMENT & AMENITY POPULATION AND KEY DEMOGRAPHICS The population in is forecast to increase from 25,800 in 2015 to 32,900 in 2036, representing 28% growth in the number of residents. Forecast population growth is indicative of growing demand for dwellings as new residents require residential properties. The majority of residents in are aged 20-49, with 52% of residents falling within that age bracket, compared to Greater Melbourne with 45%. Additionally, a greater proportion of households in comprise of a non-related group or lone person. This indicates that is popular with a young demographic that are yet to start a family. POPULATION FORECAST RESIDENT POPULATION 35,000 31,500 32,100 32,600 32,900 30,200 28,800 30,000 27,300 25,800 25,000 20,000 15,000 10,000 5, Source: ABS, ForecastID, Urbis There is over $438 million worth of potential public and private infrastructure investment in the pipeline to 2019 within. One key project that will enhance the amenity available to residents of is the $250 million mixed-use development along Arthurton Road which is known as Arthurton Row. This will include shops, offices, a community centre and public swimming pool, and is expected to be completed by The Activity Centre is undergoing over $53 million of mixed-use developments that are aimed at further improving High Street. The addition of new retail and commercial space is expected to enhance the amenity of the activity centre and benefit local residents and visitors. EDUCATION INCOME & EMPLOYMENT There are six schools located in, with three primary schools, two secondary schools and one special school. These schools provide local education options for residents, with some 32% of households in comprising of a family with a child younger than 15. Of the residents in, 9.0% are undertaking tertiary education, which is higher than the proportion across Greater Melbourne, 6.5%. This is partly due to its proximity to major universities within Melbourne, including the University of Melbourne, which is ranked, 33rd in the world and 1st in Australia according to Times Higher Education World University Rankings , and is three kilometres from. RMIT is another high quality university which has a city campus located at the northern end of Melbourne s CBD which is in proximity to. Additionally, tram route 86 connects Norhcote directly to the Bundoora campuses of La Trobe University and RMIT. has a higher proportion of employed residents that work in white collar jobs than Greater Melbourne, with 85% compared to 72%. This is supported by the high proportion of professionals, with 43% in compared to 25% in Greater Melbourne. Further, the average annual income of residents aged in in 2011 was $55,341, which was 23% higher than that of Greater Melbourne, $45,019. This highlights s popularity with young professionals, supported by the suburbs accessibility to key white collar employment hubs, such as the Melbourne CBD, Docklands and Southbank. PER CAPITA INCOME* Primary Schools 2 Secondary Schools 1 Special School Source: data.gov.au UNDERTAKING TERTIARY STUDY : 9.0% Greater Melbourne: 6.5% : $55,341 * Residents Aged Greater Melbourne: $45,019 4 MARKET OUTLOOK BRUNSWICK MARKET OUTLOOK 5

5 RESIDENTIAL MARKET Over the past decade, s median sale price for units has grown at a rate of 7.2% per annum. Additionally, the median sale price is more affordable and closer to Melbourne s CBD than other popular inner northern and eastern suburbs. ndicative of a healthy rental mar et, has a low vacancy rate of % and recorded total ten year median wee ly rent growth of % to December 2. RENTAL MARKET MARKET OVERVIEW Apartments and townhouses are a common dwelling type in, making up 40% of all residential properties. This statistic is reflected in the proportion of one bedroom dwellings in with 13% compared to compared to 6% in Greater Melbourne. The higher density dwelling types are supported by the demographic profile of the suburb, including student demand due to accessibility to tertiary education. DWELLING SIZE 2011 No Bedroom STUDIO 1 Bedroom 2 Bedroom 3 Bedroom 4+ Bedroom PRICE GROWTH GREATER MELBOURNE 1% 1% 13% 6% 34% 20% 41% 46% 12% 28% AFFORDABILITY s median unit sale price of $502,000 for the six months to December 2015 is less than some of the nearby suburbs that are further away from the Melbourne CBD. This includes the suburbs of Alphington ($550,000), Hawthorn East ($560,000), Heidelberg ($509,000), Ivanhoe ($635,000) and Ivanhoe East ($525,000). This makes an attractive suburb for purchasers looking to remain in proximity to inner Melbourne with relative affordability. Source: APM PriceFinder, Urbis MEDIAN UNIT SALE PRICE DISTANCE TO MELBOURNE CBD $502,000 5km Alphington $550,000 6km Hawthorn East $560,000 7km Ivanhoe $635,500 8km Ivanhoe East $525,000 9km Heidelberg $509,000 10km RENTAL POPULARITY When compared with Greater Melbourne, has a high proportion of households that are renting. At the last census, 38% of households in were rented compared to 28% in Greater Melbourne. This indicates that is a popular suburb with investors and renters alike. MEDIAN WEEKLY RENTS Over the ten years to December 2015, the median weekly rent for one, two and three bedroom units grew at an annual rate of 7.2%, 7.4% and 6.1% respectively, which is higher than the growth of Greater Melbourne, with 5.0%, 5.6% and 5.1%. Total ten year median weekly rent growth for the decade to December 2015 in registered 103%, which is greater than the surrounding suburbs of Alphington, Brunswick East, lifton ill, airfield, it ro orth and hornbur of ong term rental growth suggests there is a consistent level of demand for rental properties. PROPORTION OF HOUSEHOLDS RENTING 2011 : 38% : 103% GREATER MELBOURNE: 28% TOTAL GROWTH - MEDIAN WEEKLY RENT UNITS, TEN YEARS TO DECEMBER 2015 SURROUNDING SUBURBS*: 85% For the six months to December 2015, registered a median sale price for units of $502,000. Over the past decade, the median sale price for units has grown at a rate of 7.2% per annum. This is higher than Greater Melbourne, which experienced a growth rate of 5.4% per annum over the same time frame. The total growth in the median sale price for units has grown 101% MEDIAN APARTMENT PRICE MEDIAN PRICE $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 PERIOD (BI-ANNUAL) Dec-12 Jun-13 Dec-13 Jun-14 $502,000 Dec-14 Jun-15 Dec-15 over the decade to December This is greater than the total growth of the City of Darebin, within which is located, which grew by 75% over the ten years. Strong growth suggests that over the past decade, demand for units has grown, supply has tightened or a combination of strong demand and constrained supply has existed. This is indicative of a well-performing residential market. UNIT - MEDIAN SALE PRICE GROWTH TEN YEARS TO DECEMBER 2015 : 101% City of Darebin: 75% VACANCY RATE As at February 2016, registered a relatively low vacancy rate of 1%. This is lower than the surrounding suburbs of hornbur, runswic ast, it ro orth, lifton ill, airfield and Alphington. A low vacancy rate is indicative of a strong rental market as 99% of rental properties in are earning the investor rental income. * Surrounding Suburbs include: Alphington, Brunswick East, Clifton Hill, Fairfield, Fitzroy North and Thornbury VACANCY RATE Source: SQM Research 1.0% Clifton Hill 1.2% Fitzroy North 1.2% Thornbury 1.3% Brunswick East 1.4% Fairfield 4.3% Alphington 4.3% Source: APM, PriceFinder; Urbis Source: APM PriceFinder, Urbis 6 MARKET OUTLOOK MARKET OUTLOOK 7

6 Melbourne Level 12, 120 Collins St Melbourne VIC Sydney Tower 2, Level 23, Darling Park Sydney NSW Perth Level 1, 55 St Georges Terrace Perth WA Brisbane Level 7, 123 Albert St Brisbane QLD This publication is prepared on the instruction of Pace Developments and is not suitable for use other than by the party to whom it is addressed. As the publication involves projections and assumptions it can be affected by a number of unforeseen variables. The forecasts and assumptions are a prediction and whilst Urbis has made every effect to ensure that the forecasts and assumptions are based on reasonable information, they may be affected by assumptions that do not necessarily eventuate or by know or unknown risks and uncertainties. It should be noted that past performance is not necessarily a reliable indication of future performance. The information in the publication does not represent financial advice and should not be regarded as such. It has been prepared without taking into account your financial situation or investment objectives. You should consider the appropriateness of the information in regards to your current financial situation or needs. Urbis accepts no responsibility for the accuracy or completeness of any such material. The information is subject to change without notice and Urbis is under no obligation to update the information or correct any assumptions which may change over time. This study has been prepared for the sole use of Pace Developments and is not to be relied upon by any third party without specific approval from Urbis. This publication is subject to copyright. Except as permitted under the Copyright Act 1968, no part of it may, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) be reproduced, stored in a retrievals system or transmitted without prior written permission. Enquires should be addressed to the publishers.