This article is from the Australian Property Journal archive
Ipswich in south east Queensland is set to ride on a boom of its own with $10.6 billion worth of developments earmarked across 40 projects, according to Matusik research.
According to Matusik, in the last 12 months, new major developments in both residential and commercial projects have doubled across the Ipswich area compared to that in the last two years.
Matusik’s principal Michael Matusik said Ipswich will be what Parramatta is Sydney’s west, a suburb that is attracting record property prices as an increasing number of investors escape the cities in favour of nearby outer city regions.
“Ipswich has the capacity to be the ‘Parramatta’ of south east Queensland. In 2004 the Ipswich region held $6.6 billion worth of new development, much of which was either under construction or committed to happened within the next five years,” he added.
Research showed that Ipswich is now one of the highest growth regions in SE Queensland.
Matusik said the city was poised for a vibrant economic future with 200,000 people expected to call Ipswich home by 2016, an increase of around 50,000. But he added critical federal government infrastructure is holding the city back from reaching its true potential.
“The only commitment missing is from the Federal Government and involves the much needed upgrade to the Ipswich Motorway.
“This vital piece of road infrastructure is now the only impediment which is stopping Ipswich from reaching its full potential. This city has so much going for it in economic, property and cultural terms, now is the time for the government to step up and realise this potential,” he added.
According to Matusik, house prices in the area have increased from $75,000 in 2002, to $250,000 in 2006 and median house prices rose by 7% over the last 12 months to now sit at $244,000.
In addition, there were 3920 house sales across the city during 2005-06, which was also up 7% on the year before.
The research also showed that on average, a suburban vacant allotment now costs around $140,000 with prices rising. More than 300 attached dwellings sold across Ipswich over the last 12 months, as well as 1480 vacant blocks of land.
“What is interesting is that the top-end of the attached dwelling market, being mostly townhouses, performed the best across Ipswich last year, with a 32% lift in median values,” Matusik said. “There is now several new high-rise apartment developments proposed for Ipswich and we can expect more medium density developments, especially downtown and around lifestyle precincts like Brookwater, in the years to come.”
One apartment project currently under construction is Aspire in the city centre, which is already 60% sold.
Private national developer No Limit Group has also started on two of three residential developments near Ipswich, worth $114 million.
They include the $87 million Grandview Estate and the $7 million Flinder’s Village development. The developer has also started marketing a $20 million, 68 townhouse development at nearby Brassall, with construction imminent.
Whilst, more than 50% of the Flinders Village project has sold, amassing $4 million in sales.
The Queensland branch of the Urban Development Institute of Australia found that for every $1 million worth of new development within Queensland, nine full-time jobs are created, five of which are directly in the development industry and four are generated from flow-on effects.
“In short, more development in Ipswich means more Ipswich jobs,” Matusik concluded.
By Kathryn O’Meara
