This article is from the Australian Property Journal archive
THE mining boom in regional Queensland is opening up opportunities for residential developers, according to CB Richard Ellis.
Speaking at CBRE’s Private Client Group Market Outlook function, director Jason Degn said strong economic outlook, interstate migration, jobs growth and significant infrastructure investment would result in regional QLD remaining somewhat insulated from any wider economic downturn.
“The current economic downturn had had little impact on the coal mining industry, with international coal prices at an all time high and more than $50 billion in new mining related development on the drawing board or underway in regional QLD.
“There is a phenomenal mining boom surging ahead in regional QLD, and the full extent of it and the long term flow on effects to other industries is not completely understood at this stage. There is no doubt that the best development and investment opportunities are in regional QLD,” he added.
Degn said Gladstone, Mackay and Townsville are the key markets for developers keen to capitalise on the state’s ongoing resources boom.
“Medium and high rise development opportunities in the CBDs of Gladstone, Mackay and Townsville are all worthy of serious consideration. The ever increasing demand for coal and employment growth will ensure short-term and long-term accommodation will continue to be in high demand,”
Meanwhile, Degn said the sea change communities of Hervey Bay and Bundaberg/Bargara are other areas of opportunity for developers and investors.
While the average price for a residential lot in Hervey Bay and Bundaberg/Bargara was considerably less than the QLD average of approximately $200,000 per lot, Degn said it was only a matter of time before land in those areas broke through that price barrier.
“These regional centres are not reliant on the mining boom, however there is significant growth potential in residential land prices in these areas underpinned by tourism and the sea change phenomenon,” Degn said.
Other areas for developers to consider were the South East QLD transport nodes of Chermside, Mount Gravatt, Toowong, North Lakes and Springfield.
The QLD State Government has already identified areas such as Chermside, Mt Gravatt & Toowong as key transit node areas suited for high rise development.
Degn said new master planned communities such as Northlakes and Springfield also offered a variety of affordable housing, new non-residential infrastructure and employment opportunities.
“South East QLD still welcomes over 1,000 new permanent residents each week and as a result there is a critical lack of supply of new housing estates in the areas where people want to live which is close to existing infrastructure,” he concluded. “Getting the supply and demand fundamentals right remains the greatest challenge for 2008.”
Australian Property Journal
